Calgary Announces New Downtown Density Bonusing Offset Program

The City of Calgary recently launched a new Downtown Density Bonusing Offset Program designed to ease the path for developers to build more homes in the heart of downtown. The initiative aims to create over 1,500 residential units by allowing builders to exceed existing base density limits in exchange for contributions that benefit the community. Under current zoning rules, “base density” refers to how much floor space can be built relative to land area, but this program gives developers the opportunity to go beyond that limit if they contribute in specific ways.

Developers seeking extra density can contribute to Calgary’s housing and community goals by providing affordable housing units, donating to city-approved funds, or adding public amenities. These might include parks, plazas, cultural spaces, or public art. The city will then reimburse developers for the full cost of those contributions, subject to available funding. Mixed-use projects are also included, but their reimbursement amounts will be adjusted based on non-residential parts of the development.

This program applies specifically within the Greater Downtown Plan Area, which covers several key communities including the Downtown Core, Beltline, East Village, Chinatown, Eau Claire, and Downtown West. To qualify, projects must be new residential builds that had not begun construction or received permits before May 1, 2025. Applications will be accepted starting June 1, and approved developers will sign funding agreements laying out timelines, reporting requirements, and reimbursement processes.

Calgary officials believe that adding more homes downtown will boost the city's vibrancy, make it more affordable, and support economic activity. Thom Mahler, Director of Downtown Strategy, said the program offers “an incredible opportunity” for high-density developments that connect people to jobs, transit, arts, and amenities. Mayor Jyoti Gondek echoed this optimism, highlighting that building downtown meets housing demand, increases affordability, and strengthens city connections.

Similar programs exist in other Canadian cities, though Calgary’s has a unique reimbursement component that sets it apart. While cities in British Columbia and elsewhere often ask for community contributions in exchange for additional density, they may not fully reimburse developers afterward. Calgary’s model aims to lower financial barriers and make downtown residential projects more attractive and viable for builders.

In summary, Calgary’s Downtown Density Bonusing Offset Program encourages developers to build beyond standard limits by offering a financial offset for community-focused contributions. Starting June 1, new residential developments in defined downtown areas can apply if they meet criteria including location, timing, and contribution to public goods. The program reflects the city’s effort to address housing demand, enrich public spaces, and foster a more lively, connected downtown core.