Two new office-to-residential projects, with a total of 128 homes, have been approved to receive funds from the City of Calgary’s Downtown Non-Market Office Conversion Grant program.
The program grants grants to only non-market (affordable) homes and is funded by the federal Housing Accelerator Fund. The two grants total $10.3 million, which will help support two non-profit organizations: the HomeSpace Society and Trellis Society for Community Impact, partnering with the Bluevale Capital Group.
The HomeSpace Society’s project received a $4.1 million grant and is at 1000 8 Ave. SW. The total cost of the project is $27.5 million, developing 30 studio apartments and 35 one-bedroom apartments.
The Trellis Society project received a $4.1 million grant and is at 441 5 Ave. SW. The cost of the entire project is $27.8 million to build 27 studio apartments, 18 one-bedroom apartments, nine two-bedroom apartments and nine three-bedroom apartments.
All homes in the projects will be rentals, with monthly rents capped at just over $1,500.
Between the two projects, almost 100,000 sq. ft. of former office space will be taken off the market.
A launch event was held this week, with representatives from the receiving societies, as well as Calgary Mayor Jeromy Farkas, the city’s Chief Housing Officer, Reid Hendry and Member of Parliament Corey Hogan, who represents Calgary Confederation.
“Our government is proud to partner with the City of Calgary and dedicated partners like HomeSpace and Trellis to bring more affordable housing to Calgary,” said Hogan. “This investment is about building a more inclusive city where families and individuals can live close to the services and opportunities they need. These 128 new units represent a significant step forward in our shared mission to make housing more accessible for all Calgarians.”
Farkas said filling vacated office space in the downtown core adds to the area's vitality.
“With these projects, and thanks to funding from the federal government, we are tackling Calgary’s housing affordability challenge while breathing new life into our downtown,” said Farkas. “By transforming empty office space into non-market homes with our non-profit partners, we’re strengthening our downtown community, supporting economic resilience, and ensuring Calgarians have access to safe, stable, and more affordable housing close to jobs, transit and services.”
Hendry said the downtown office conversion project is a creative and efficient way to add affordable housing to the city.
“These projects represent exactly the kind of outcomes we are working toward on behalf of Calgarians,” said Hendry. “They deliver deeply needed non-market homes for individuals and families, support downtown revitalization and community wellness, and demonstrate how adaptive reuse can play a critical role in addressing housing supply and affordability.”
Jeff Dyer, CEO of the Trellis Society for Community Impact emphasized his organization's project provides needed affordable housing for families.
“Calgary urgently needs more non-market housing that meets the needs of families,” said Dyer. “By including nine three-bedroom homes in this project, we’re creating space for families to put down roots, thrive and remain connected to the services and opportunities that downtown living offers."
“This investment allows us to respond to real community needs while helping ensure Calgary’s downtown is a place where families of all sizes belong.”
In a statement, the city said, “In 2025, the city saw a total of over 1,800 non-market homes receiving development permit approvals, reaching about five times the average annual volume. The two new funded projects are high-impact opportunities to continue that momentum toward the goal of 3,000 non-market homes per year.”
The city’s downtown conversion project was launched in 2021 when there was a vacancy rate of 34%. More recent estimates are the rate is now around 27%, still the highest downtown office vacancy rate in Canada.