Edmonton infill built with CMHC affordable housing funds now listed on Airbnb
Edmonton infill with CMHC funds now listed on Airbnb

An eightplex in Edmonton's Grovenor neighbourhood, financed through federal affordable housing incentives, is being operated as a short-term rental on Airbnb, drawing complaints from neighbours and raising questions about compliance with program rules.

Neighbours raise concerns about transient tenants

Travis and Lisa Watt, who have lived in the area for 15 years, said they initially accepted the new development next door but soon noticed a constant turnover of occupants. “They’re in and out. They’re a busy property,” Lisa Watt said. “There were no rental signs, no open houses, no nothing.”

The couple, who built their dream home in the neighbourhood, said the block used to be quiet. Travis Watt, a firefighter who works nights, said short-term tenants often make loud noises at night while drinking or using cannabis. He called the property “basically a mini hotel” that should not operate in a residential area. Lisa Watt, a nurse, said she has been yelled at by tenants and is concerned for her safety.

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Bylaw enforcement challenges

Lisa Watt filed complaints with the property’s host, Airbnb, and the City of Edmonton’s bylaw office. She said the required business licence for the property lists an incorrect address. Under city rules, if all eight units were used as short-term rentals, the operator would also need a special business development permit. However, the bylaw office told her there was insufficient evidence to proceed with enforcement.

Postmedia visited the property in late June and spoke with tenants who confirmed they booked through Airbnb. Another guest left a review on the platform referencing the address.

CMHC financing terms violated

Mortgage documents obtained by Postmedia show the property was financed using a federal incentive from the Canada Mortgage and Housing Corporation (CMHC) meant for affordable rentals. The documents require the owner to operate all eight units as rental accommodations, lease one-quarter of the units at affordable rates, and prohibit conversion for business, commercial, or hotel use.

CMHC spokesperson David Harris said using any part of the property as a hotel or short-term rental would violate its rules. “Non-compliance with this requirement would put the loan in default, which would be addressed on a case-by-case basis,” Harris said.

Community tensions over infill

The situation highlights growing tensions in Edmonton over infill developments, which are intended to increase housing density but sometimes lead to conflicts with existing residents. The Watts said they hope the city and CMHC will take action to ensure the property is used for its intended purpose: affordable housing.

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