The Town of Stettler is pivoting its strategy to solve local housing shortages, moving away from one-time cash grants in favor of a multi-year tax break for developers.
During its March 17 meeting, the town council gave all three readings to a new residential tax incentive bylaw & updated their policy on water & wastewater service fees for infills.
Under the new bylaw, developers will see a phased-in approach to property taxes on the increased value of their projects.
The incentive applies only to the municipal portion of the tax assessment: a 100 percent exemption in the first year, followed by 75 percent in the second, 50 percent in the third, & 25 percent in the final year.
The shift follows a 2024 Housing Assessment that identified a critical need for purpose-built rentals in the community.
The town introduced a cash-based incentive policy in August 2025, offering between $3,000 and $10,000 depending on the build.
Because the previous policy relied on year-to-year operating budget allocations, developers could not guarantee the funds would be available by the time their projects were completed.
The new incentive only applies to the increase in a property’s assessed value following construction, & the town will continue to collect the original base property tax throughout the process.
Full tax revenue on the improved properties will be realized by the town in the fifth year following project completion.
Council heard that the previous incentive model saw almost no uptake in 2025, with only one single-family home on 56A Street Close receiving a one-time exception after missing the program’s original eligibility window.
Incentivizing Infill Development
In a second move to spark growth, council updated its water & wastewater service installation fees.
The policy standardizes rates for replacing or upgrading services, with an update introducing a significant waiver for infill development.
Fees will now be waived for new construction on vacant or underutilized lots within established areas where municipal infrastructure is already in place.
Author: Landin Chambers
Landin Chambers is a news reporter for Hometown Media Stettler. He has a background in broadcast news, with previous roles in Prince George, Red Deer and Calgary. You may also see him as a cameraman for the Stettler Wildcats and Stettler Imperials. Have a story idea? Email: lchambers@htproductionsmedia.ca
