The City of Calgary has resumed its downtown-office conversion program with a $52.5-million injection of new funding.

The resumption comes almost a year after the city paused the highly successful and widely praised downtown office-conversion program because the initial budget was exhausted.

“Transforming unused office space into homes for Calgarians is not only a practical solution but a transformative one,” says Mayor Jyoti Gondek. “By partnering with the private sector, we’re boosting the number of downtown residents, energizing local businesses and enhancing public spaces. This initiative strengthens our economy, improves public safety and addresses the critical need for housing.”

DIP’s first round funded 17 projects that are at various stages of development. If all are approved, they will create 2,300 homes for Calgarians, remove 2.3 million square feet of downtown office space and leverage $567 million of private investment..

Several other jurisdictions have looked to emulate DIP as they contemplate creating similar programs. DIP has helped reduce Calgary’s B and C class office vacancy, said Avison Young in a September 2023 report.

Sheryl McMullen, the program’s head, said officials will use the pause to better align DIP with the city’s commitment to accelerate more student, market and non-market housing development.