Calgary Mayor Jeromy Farkas Challenges Federal Housing Funding Ultimatum
Mayor Jeromy Farkas of Calgary has openly mocked the possibility of the city losing federal housing money, despite direct threats from Ottawa. In a recent interview, he characterized a letter from federal officials as reeking of "old-fashioned Trudeau-era arrogance," setting the stage for a contentious battle over urban development and funding.
Federal Demands and Contractual Disputes
The Canada Mortgage and Housing Corporation (CMHC) has issued a stark warning to Calgary: adhere to strict blanket rezoning that permits up to four units per lot across the city, or risk forfeiting over $251 million in federal housing funds. However, Farkas firmly rejects this ultimatum, arguing that the city's contract with CMHC contains no such obligations.
"Nowhere in the contract does it obligate the City of Calgary to implement blanket rezoning or to allow four units by right, or any of these draconian blanket measures," Farkas stated. "The federal government has an opinion that they would like us to go further, but the contractual obligation matters, and none of those words on the page committed the City of Calgary to implementing the blanket rezoning."
City Report Labeled as 'Cover-Your-Ass' Mentality
In response, Calgary city officials presented a report to council warning that nearly $1 billion in federal funding could be jeopardized if the blanket rezoning bylaw is repealed. Farkas dismissed this assessment as "utter nonsense" and accused the administration of operating in a "cover-your-ass mentality."
"That is the absolute worst-case scenario," Farkas remarked. "Our administration is now in a cover-your-ass mentality, where they want to highlight absolutely every single risk, even those that are 99.999 per cent unlikely to materialize. Well, that's their job, but our job (on council) is to take it with a grain of salt."
Political Backdrop and Public Hearing
The blanket rezoning bylaw, which was pushed through in 2024 amid significant public opposition, is now under review as council moves to repeal it. A public hearing is scheduled to begin on March 23, with expectations of fierce debate mirroring previous controversies. Farkas, along with other major mayoral candidates like Sonya Sharp and Jeff Davison, campaigned on repealing the bylaw during the October election, and he emphasizes that voters would feel betrayed if it remains.
Despite his stance, Farkas acknowledges his duty to preside over the hearing impartially. "I take that very seriously. I have to sit as a judge would, because I preside over the proceedings," he noted, highlighting the delicate balance between political promises and procedural fairness.
Broader Implications for Municipal Autonomy
This dispute underscores a larger conflict between federal oversight and local governance. Farkas argues that while Calgary needs federal funds for housing, Ottawa should not overstep by dictating the city's urban planning policies. The outcome of this standoff could set a precedent for how other municipalities negotiate with federal bodies over housing initiatives, impacting future development and funding agreements across Canada.
