‘Slightly reassured’: Neighbours react as city takes action on Grovenor Airbnb

"Anything that's being built that's not following the rules under the funding agreement should not be allowed"

The City of Edmonton is moving to inspect an infill property in Grovenor, financed to be affordable housing, which Postmedia identified as an Airbnb earlier this month. A notice bearing the building’s address and posted to the doors of the property said compliance officers will be inspecting what the city believes might be a lodging house. A spokesperson with the city said access to information laws prohibit it from disclosing details about active property investigations.

Postmedia visited the property in late June and spoke with tenants who confirmed they booked a stay through Airbnb. Another guest, who posted reviews on the platform, also told Postmedia they stayed at that address. Airbnb confirmed it has a listing at the address.

Next-door neighbours Travis and Lisa Watt had been sending complaints and documenting evidence regarding the property to city officials and Airbnb since they first noticed it appeared to be operating as short-term rentals earlier this year. Postmedia also obtained mortgage documents showing the property was financed using a federal incentive meant for affordable rentals. The Canada Mortgage and Housing Corporation confirmed that using such properties as short-term rentals is against its rules.

“I feel slightly reassured that the city’s going in,” Lisa Watt said Thursday. “But from here, we don’t know what any of the repercussions are, and I don’t love that.” She added she’s now been able to speak with someone at CMHC about the issue.

In the meantime, she’s waiting for the short-term renters to stop rotating through, and for the property’s upkeep to improve. “I’d like to see real people live there. I’d like to see the house used for the intention it was meant.”

Since first reporting on the property, Postmedia has made additional attempts to contact the owner, listed as an Alberta numbered corporation. Records show their company is based in Burlington, Ont. Postmedia has attempted to phone and email one of the company’s officers.

Upon answering a call and identifying himself, the call was disconnected after a reporter attempted to ask questions about the property. There have been no responses to emails sent to an address Postmedia found in corporate records, or to additional calls and voicemail. The lender listed in those records also didn’t respond to phone calls or voicemails left by Postmedia before publication.

McKernan Airbnb also financed for affordable housing In March this year, Postmedia spoke with a person staying at a property in McKernan, who confirmed they had booked a room at the home through Airbnb. After learning of the property in Grovernor, Postmedia has now obtained mortgage records showing this property was also financed with a CMHC agreement, which forbids short-term rentals. Mayor Andrew Knack said the city has a responsibility to ensure rental accommodations are not being used as a “de facto hotel,” an issue he said is important due to the city’s continued need for more affordable housing.

“Anything that’s being built that’s not following the rules under the funding agreement should not be allowed,” Knack said. Critics, however, say more needs to be done across all orders of government to protect affordable housing and crack down on unauthorized short-term rentals. NDP housing critic Janis Irwin said it’s troubling to see companies get affordable-housing incentives only to make a profit on short-term rentals, especially as a housing crisis persists.

“I hear from folks every day who are struggling to pay rent, who are dealing with rent increases, who can’t afford to buy a home,” Irwin said. While she said in this case, the issue is municipal and federal, she added housing solutions must come from all orders of government working together. Tracy Douglas, president of the Alberta Hotel and Lodging Association, said one problem is the lack of rules for short-term rentals in Alberta.

As a result, Douglas said Alberta has become a “wild west” for commercial short-term rentals. She said these aren’t people choosing to rent out a spare room in their home — they are big business capitalizing on gaps in the law. Unlike hotels, Airbnb and VRBO operators don’t have to follow the same rules as hotels, like the Innkeepers Act, employment standards, or public health regulations.

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