Calgary's Federal Housing Funding in Peril Amid Rezoning Reversal Discussions
Members of Calgary's city council are embroiled in a contentious debate over the potential repercussions of repealing blanket rezoning, with significant federal funding hanging in the balance. The city has already received more than $121 million from the federal government's Housing Accelerator Fund (HAF) program since signing the agreement in 2023, but the remaining installments, totaling over $129 million, could be jeopardized if the policy is scrapped.
Federal Warnings and Compliance Concerns
During a meeting of the infrastructure and planning committee on Wednesday, Chief Housing Officer Reid Hendry presented a letter from the Canada Mortgage and Housing Corporation (CMHC). The federal agency explicitly stated that Calgary's agreement was based on the city's commitment to eliminate exclusionary zoning city-wide and enable a variety of missing middle housing types. To remain compliant, any updated zoning policies must not reintroduce single-family-only zoning, must allow for at least four units on a lot without additional approvals, and must not reintroduce barriers that slow development.
Hendry emphasized that if council fully repeals the rezoning bylaw, CMHC may deem the city non-compliant with the HAF agreement, putting future funding at risk. The committee went in-camera for over an hour to discuss this letter and a city report indicating Calgary could miss out on up to $1 billion in federal grants if blanket rezoning is repealed.
Council Divisions and Contractual Interpretations
Despite the warnings, some council members, including Mayor Jeromy Farkas and Ward 10 Coun. Andre Chabot, argue that the agreement does not specifically require enabling four units on a single residential parcel—a key outcome of the blanket rezoning policy approved in 2024. This disagreement highlights deep divisions within council over how to interpret the contractual obligations and the potential financial fallout.
In a statement to Postmedia, CMHC reiterated that cities must fulfill their commitments under the HAF agreement, or funding may be withheld. The agency noted that compliance outcomes vary, ranging from funding reductions for partially unmet commitments to full agreement cancellation if core obligations are not fulfilled.
Financial Stakes and Future Implications
The next installment of HAF funding is slated for the end of March, adding urgency to the council's decision. The debate centers on whether repealing blanket rezoning would constitute a reneging on commitments, as CMHC suggests, or if there is flexibility in the agreement's terms. This issue not only affects immediate federal support but also long-term housing development and affordability strategies in Calgary.
As the public hearing and council vote approach next month, the outcome will have profound implications for the city's housing policy and its relationship with federal funding programs. The stakes are high, with millions of dollars and the future of urban development in Calgary on the line.
