CALGARY -- An affordable housing development in Calgary will be decommissioned by the city over the next two years as officials work with residents to find new homes.

The city says Bridgeland Place has issues with the heating and water supply, energy performance and high operating costs and that the building is still habitable but will require significant repairs, which are not possible without disrupting tenants.

The facility will be gradually closed down over the next two years and the city says current residents and the daycare have been notified.

Officials say vacancies have not been filled as tenants moved out and that they will focus on ensuring a smooth transition for current residents to find alternative housing.

"Tenants will be our main priority through this closure. We'll be working hard to alleviate the disruption this will cause and to support them into other housing options," said Coun. Druh Farrell, chair of the Calgary Housing Company, in a release.

"As we do that, we'll also take our time to look at all of the options before a decision is made as to what the future holds for this building."

"This is an extremely difficult decision," said Mayor Naheed Nenshi. "Bridgeland Place has been home to so many people for so many generations. However, we owe it to all of our tenants to provide a decent home, a place of dignity and a platform for the future. We can't do that in this building without severely impacting people's lives. But our commitment is unwavering. We will work with every tenant to find them a home that fits their needs, and to move in a dignified way."

A feasibility study will consider several options for the future use of the site and a recommendation will go to council next year.