Funding promised by the Alberta government now hangs in the balance as the mountain town sees a need for multi-unit buildings to alleviate the town’s chronic housing shortage. The province requires that funds be used to build detached single-family homes.
“If we don’t have a project that meets those requirements, then that money can’t be spent,” Jason Nickerson, Alberta’s minister of Seniors, Community and Social Services, told reporters on Tuesday.
More than 600 families are homeless in Jasper, and competing visions for how the fire-ravaged town can move forward have led to an impasse between the province and municipality, which is fighting with Parks Canada Administration to carry out reconstruction work.
Given the limited space for construction, Jasper officials say only 60 of the 250 homes promised under the provincial plan can be built.
At the same time, the town hopes to pursue short-term housing while developing permanent high-density units. This process takes 18 to 24 months.
These homes are in addition to insurable homes that will be rebuilt in the coming years.
Earlier in the day, Jasper’s recovery director told reporters the town is “in a period of uncertainty” over whether the province will cover the cost of services for the temporary housing units. He expects those costs to be between $5 million and $7 million.
“The city does not have the financial resources to cover this level of costs, so we will continue to work with our partners in the provincial and federal governments to try to find solutions to ensure the costs of these services are covered,” Jasper Rehabilitation Coordination Center Director Michael Falk said.
Falk said the town has a choice between housing a small number of people in comfortable housing or moving more families into “less desirable temporary units.”
“We do understand that this is a trade-off and is not ideal.”
Nickerson did not say whether the funds would be redirected to other areas of Jasper’s recovery.
“If we don’t end up completing this project, it won’t be utilized, but we will invest other ministers’ budgets in other areas,” he said. “To date, we have invested hundreds of millions of dollars in Jasper’s recovery. The province is prepared to continue doing so.
Jasper Mayor Richard Ireland did not immediately respond to a request for comment on Nickerson’s remarks.
Nickerson said the province is also helping to replace seniors’ facilities lost in the fire and set up a temporary facility for seniors in nearby Hinton – work that will continue regardless.
Jasper is prohibited from building outside the tightly controlled town boundaries within Jasper National Park. Changes to that boundary would require an act of parliament to limit the space where new housing can be built. Jasper has long experienced zero vacancy rates.
— With files from Jack Farrell in Edmonton
This report by The Canadian Press was first published on January 21, 2025.
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Last modified: January 21, 2025
