May 21, 2024
Edmonton’s newest tool to help tackle the problem of derelict properties is paying dividends. Derelict properties are defined as properties where the structure is unfit for habitation or in a dilapidated state and falling into significant disrepair. The derelict residential property tax subclass, established for the 2024 tax year, has already helped to stimulate the cleanup of dozens of derelict properties in mature areas across the city.
Edmonton is the first city in Canada to create a tax subclass specifically for derelict residential properties. City Council approved the new tax in September 2023, resulting in a property tax rate about three times higher in 2024 than the average residential property. Property owners could avoid the higher tax rate by restoring their properties before December 31, the condition date for tax assessments.
“The subclass was brought in to help cover the increased costs of providing City services like bylaw enforcement and fire rescue to derelict properties, as well as to promote community safety and vibrancy in mature neighbourhoods,” said Cate Watt, Branch Manager of Assessment and Taxation. “We’re really pleased to see progress so quickly. More than 15 per cent of the roughly 300 properties we originally identified last fall as in a derelict state have been cleaned up.”
The tax subclass is one way the City helps with the issue of derelict properties. Though not all derelict properties are problem properties and vice versa, the City’s
Problem Property Initiative also worked to address many of the properties that were and are being cleaned up, and monitors properties for nuisance and unsafe conditions such as fire risk or safety code violations.
"Coordination has been the key to our success in curbing unsafe environments caused by derelict and problem properties in communities across Edmonton," said Chantel Perizzolo, Specialized Programs Manager, Complaints and Investigations Section with Community Standards and Neighbourhoods Branch. "The Problem Property Initiative coordinates the efforts of multiple City departments, Alberta Health Services, the Edmonton Police Service, and the Government of Alberta. The new tax subclass has added to those efforts and will be an essential part of ramping up this work in the future."
The Problem Property Initiative makes Edmonton neighbourhoods safer in several ways, including securing vacant properties at risk of fire, clearing properties of debris and hazardous waste, and demolishing derelict buildings that have been assessed as being unsafe to the surrounding community. The initiative also provides a coordinated approach to complex residential living situations and connects vulnerable residents to resources and services.
Edmontonians who are concerned about problem properties can notify the City by calling 311 or using the confidential online
Report a Problem Property form. Minor nuisance complaints about concerns like long grass, graffiti or furniture left on front lawns, can also be directed to 311.
Derelict property owners were notified of their status when the subclass was established and their updated status was listed on their 2024 assessment notice this January. They will see their new tax rate on their 2024 tax notice. Notices will be mailed to every Edmonton property owner later this week. Property taxes are due by June 30, 2024.
