Infill housing financed for affordability running as short-term rental on Airbnb

A Grovenor eightplex financed with federal incentives for affordable housing is operating as short-term rentals on Airbnb, violating the terms of its CMHC loan and city bylaw requirements.

Travis and Lisa Watt, who live next door to the property, noticed tenants rotating in and out repeatedly. "They're in and out. They're a busy property," Lisa Watt said. "There were no rental signs, no open houses, no nothing." Travis Watt, a firefighter, said the constant traffic and noise from short-term guests disrupts the quiet residential neighbourhood. Lisa Watt, a nurse, said she has been yelled at by tenants and is concerned for her safety.

Postmedia confirmed eight listings matched the property's address on Airbnb under a single host who manages more than 50 others. Mortgage documents show the property was financed using a federal incentive requiring the owner to operate all eight units as rental accommodations, lease one-quarter at affordable rates, and prohibit conversion to hotel or commercial use.

The Canadian Mortgage and Housing Corporation (CMHC) told Postmedia that short-term rental use would breach its rules. "Non-compliance with this requirement would put the loan in default, which would be addressed on a case-by-case basis," CMHC spokesperson David Harris said.

City bylaws require a special business development permit if all eight units operate as short-term rentals. Lisa Watt reported the issue to Edmonton's bylaw office but was told insufficient evidence existed to move forward. The eight Airbnb listings were taken down this week. The property's owner, listed as an Alberta numbered corporation based in Ontario, did not respond to questions.