Calgary Could Lose Nearly $1 Billion in Federal Funding Over Rezoning Debate
Calgary is facing a potential financial storm as city officials warn that repealing citywide rezoning could put hundreds of millions of federal dollars at risk. The Canada Mortgage and Housing Corporation, which oversees the Housing Accelerator Fund, may view a full repeal as non-compliance, threatening further funding installments. So far, Calgary has received over $120 million from the program, part of a total award topping $250 million, aimed at boosting housing supply across the city.
The rezoning policy, introduced under the previous council, changed Calgary’s default residential zoning rules. It allowed for more diverse housing types, including duplexes and row houses, on single properties. The goal was to accelerate housing development and help the city meet ambitious federal housing targets. In less than two years, Calgary exceeded these targets, delivering more than 44,000 new housing units.
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City administration’s recent risk report lays out a stark scenario. A full repeal could not only jeopardize Housing Accelerator Fund money but also put additional federal funding streams at risk. This includes millions from public transit and infrastructure programs, potentially totaling close to $1 billion. City officials point out that failing to meet federally agreed housing targets could trigger compliance issues, leaving key initiatives for affordable housing and urban development in limbo.
Councillors, however, stress that the report cannot legally dictate their decision. Ward 10 Councillor Andre Chabot described the analysis as “doom and gloom,” noting that it focuses on the extreme case of a full 100 percent repeal. Council members are exploring potential amendments to address local concerns without losing federal support. Meanwhile, public input is being sought ahead of a March public hearing, giving residents a chance to weigh in on Calgary’s housing future.
Mayor Jeromy Farkas and city officials are actively engaging with federal representatives in Ontario to clarify the implications of these agreements. The outcome of this debate could have far-reaching consequences, not just for housing, but for infrastructure projects and essential services across the city. Calgary is at a crossroads, balancing local zoning priorities with billions in federal investment on the line.
For Calgarians and policymakers alike, the stakes are clear: decisions made in the coming weeks could shape the city’s development, affordability and financial health for years to come. Stay tuned and follow for continuing coverage as this story develops and keep informed on how Calgary navigates this critical funding challenge.
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