$129M in housing funding 'at risk' as Calgary begins rezoning repeal process, housing corporation warns
CBC
In the wake of Calgary's council kicking off a process to repeal the city's blanket rezoning policy, the corporation responsible for administering significant federal housing money warns the changes could put funding for new housing at risk.
In the days leading up to Monday's vote, there had been uncertainty around the more than $129 million in federal funding still pending for the City of Calgary through the Housing Accelerator Fund (HAF), which is administered by the Canada Mortgage and Housing Corporation (CMHC).
The HAF is intended to help fast-track 112,000 new homes across Canada by 2028. Calgary's agreement saw $251.3 million allotted under the program, to be dispersed in four separate advances. The city has already received around $122 million.
Former housing minister Sean Fraser wrote to former Calgary mayor Jyoti Gondek in a 2023 letter that stated "in order to receive a positive decision from me on your application — you must end exclusionary zoning in your city."
"As we start deliberations on how we best address Calgary's housing crisis, [council] has just received this letter of support from [Fraser]," Gondek wrote in 2023. "We will jeopardize or lose federal funding if we do not approve the full strategy. We must act now."
Calgary's blanket rezoning policy passed in May 2024 as part of the city's longest-ever public hearing.
In November, a spokesperson from the CMHC said "no official decision" had been made about the future of Calgary's funding in light of council's upcoming decision.
In a statement on Thursday, Leonard Catling with the CMHC said the corporation expects "municipalities to fulfill their agreements."
"This includes Calgary’s commitments to eliminate exclusionary zoning and accelerate approvals. If commitments aren’t met, or are reversed, Housing Accelerator Fund (HAF) funding is at risk," the statement reads. "We are closely monitoring Calgary’s deliberations ahead of a decision on Calgary’s HAF funding."
On Monday, prior to the vote, Calgary Mayor Jeromy Farkas addressed the situation. He said he wanted to share "material information" with the public that he had "provided by way of email last night" to members of council.
"As council [considers] this motion, I just wanted to outline the discussions that our offices had with other orders of government on housing. So over the past several weeks, I spoke directly with federal officials," he said, referring to various federal officials, including Housing and Infrastructure Minister Gregor Robertson and Finance Minister François-Philippe Champagne.
“Federal officials confirmed the compliance with the Housing Accelerator Fund is assessed based on housing outcomes, not the use of any single zoning tool. Blanket rezoning was not identified as a legal requirement of the HAF contribution agreement," Farkas said.
"I also explicitly raised the potential of a repeal with Minister Champagne, and he pledged his support to work with us on a flexible approach that respects local decision-making."
Council ended up voting 13-2 in favour of rolling back the policy, with Ward 7 Coun. Myke Atkinson and Ward 8 Coun. Nathaniel Schmidt voting against. It will now head to a public hearing next spring before going to a vote before council.
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