Calgary’s $129M Housing Funds in Jeopardy Amid Rezoning Debate

UPDATE: Calgary’s future housing funding of over $129 million from Ottawa is now shrouded in uncertainty as the city council prepares for a critical debate on a controversial blanket rezoning policy. The Canada Mortgage and Housing Corporation (CMHC) has confirmed that no official decision has been made regarding the funding in light of this impending discussion.

Officials from CMHC stated that they are closely reviewing Calgary’s proposal. Leonard Catling, a spokesperson for the organization, clarified that while the funding has not been paused, the city was informed last Friday that future payments would be on hold pending further clarity about the status of the blanket rezoning policy.

The contentious blanket rezoning policy allows for various housing types, including townhomes and six-plexes, in areas previously designated for single-family homes. A motion to debate the repeal of this policy was passed by council’s executive committee with a vote of 13-2 on November 17, 2023. Following a technical review, this motion will now advance to the full council for further discussion.

The Housing Accelerator Fund (HAF) aims to expedite the construction of 112,000 new homes across Canada by 2028, with a total goal of 750,000 homes over the next decade. So far, 241 communities have secured a total of $4.4 billion in funding. Calgary has been allocated $251.3 million, of which it has received $121.8 million, according to CMHC.

While Calgary’s funding is not directly contingent on the blanket rezoning policy, previous communications from the government indicate that a repeal of exclusionary zoning could impact future funding decisions. In a letter to former mayor Jyoti Gondek, former housing minister Sean Fraser stated that to receive a favorable decision regarding funding applications, Calgary must end exclusionary zoning practices.

Catling emphasized, “We expect municipalities to fulfill their agreements. If a partner’s agreed-upon commitments aren’t met or are reversed, this puts their HAF funding at risk.” Despite the looming uncertainty, a city spokesperson reassured that Calgary is currently in full compliance with the HAF agreement and is committed to implementing housing initiatives for its residents.

Calgary Mayor Jeromy Farkas expressed confidence that the funding has not been paused, stating that the city has “far outperformed” the housing targets set by the federal government. According to city reports, Calgary exceeded its 2023 HAF targets by incentivizing the construction of over 44,276 housing units well ahead of schedule.

In a bold statement, Ward 13 Councillor Dan McLean, a proponent of repealing the blanket rezoning, declared, “Calgarians overwhelmingly hate it. Regardless of if we lose the funding, I want to continue to repeal.” The council is expected to debate this critical issue in December, and residents are urged to stay informed as developments unfold.

The outcome of this debate could significantly impact Calgary’s housing landscape and the future of its federal funding amidst a growing housing crisis. As the city navigates these challenges, the urgency for effective housing solutions remains paramount for all Calgarians.