The City of Calgary will receive its next instalment of federal housing funds, despite a warning that repealing blanket rezoning could put the money at risk.
But the fourth and final instalment of the Housing Accelerator Fund (HAF) might not come if the city does not meet certain conditions — and Mayor Jeromy Farkas says it will be up to council to decide if those requirements are worth the cash.
Prior to council’s 12-3 vote this month in favour of repeal, the Canada Mortgage and Housing Corporation (CMHC), which operates HAF, warned eliminating the policy could jeopardize the agreement to qualify for the funding.
Calgary has a deal with Ottawa to receive $251 million from HAF, paid out in four instalments.
The city has already received about $122 million. Farkas said Wednesday the CMHC will honour the commitment for the third payout of $64.7 million.
That leaves about $65 million outstanding.
Farkas said the final payment is expected next year, but in order to get it, the CMHC requires the majority of lots in Calgary to be zoned for up to four units, known as four-by-right zoning.
He said currently, just under half of the city’s lots meet that, putting the city in “striking range” of achieving the target.
And it could be reached, he said for example, by continuing to grow and expand new communities on the city’s outskirts, where four-by-right zoning is already allowed.
But it will be up to council to weigh the benefits.
“That’s a discussion and debate that needs to be had by our council in full consultation with Calgarians in terms of how and if we go down that road, and whether they say the $60 million or so may be worth that level of approach,” Farkas said.
“It can’t just be because there’s money attached, it has to be: is this the right direction for Calgary to continue to grow?”
(CBC News)
Blanket rezoning, introduced in 2024, allowed for multi-unit homes to be built in established neighbourhoods previously zoned only for single-family homes. It proved controversial among some Calgarians, with many councillors campaigning on repeal in last fall’s municipal election.
Calgary making good progress: feds
The HAF is part of a federal initiative to quickly ramp up housing construction across the country to address shortages.
A spokesperson for federal Housing Minister Gregor Robertson said the third payment is being released thanks to Farkas’ commitment to develop a land-use policy that aligns with HAF requirements, along with Calgary’s progress in constructing new homes.
“As one of Canada’s largest cities, Calgary has the highest number of housing starts per capita in Canada in recent years,” Renée LeBlanc Proctor said in a statement.
In a letter to Farkas, Robertson said the four-by-right zoning policy will be required for a “significant majority” of lots.
It’s also a condition for the third payment, according to the letter. The city is currently meeting that target, as the blanket rezoning repeal does not take effect until August.
Earlier this year, Red Deer saw its HAF agreement cancelled when it did not meet a condition around blanket zoning. The province threatened to block future similar deals if Red Deer does not get the money promised.