Landlords have agreed to make 1,000 rental homes available to low-income Calgarians facing spiralling rents and a shortage of vacancies.

The province is giving the Calgary Housing Company, which operates and manages affordable housing in the city, $21 million over three years to spend on the project.

As vacancies open up next month, the Calgary Apartment Association's members will make 100 units per month available to the program instead of putting them on the open market.

The Calgary Housing Company will then select people living on government assistance or in low-paying jobs from its waiting list to live in the units. Those chosen will receive a rent subsidy, up to a maximum of $650 a month.

Dale Stamm, general manager of the Calgary Housing Company, said they're looking for applicants who need short-term help.

"What we do in the program is introduce them to a variety of employment, training and education opportunities and work with them so that they can over time, over a year or two, improve their circumstances so they can re-enter the private real estate market."

Landlords insist their participation isn't a response to debate over rent controls or accusations by some tenants of gouging.

"We live in a city that needs to be healthy on many, many levels and one of the ways that it can be healthy is by providing housing to new workers," said David McIlveen, a spokesman for Boardwalk Rental Communities.

The Canada Mortgage and Housing Corporation pegs Calgary's vacancy rate at 0.5 per cent.