Calgary’s Rezoning Repeal Threatens Federal Funding, Officials Warn

Calgary’s city council faces a pivotal decision regarding the repeal of citywide rezoning, a move that may jeopardize over $861 million in federal funding. A report from city administration reveals that the Canada Mortgage and Housing Corporation (CMHC) might consider Calgary non-compliant with the Housing Accelerator Fund (HAF) Contribution Agreement if the repeal occurs.

Federal Funding at Stake

Calgary received $251.3 million from the federal Housing Accelerator Fund, with $122.9 million already allocated. The next funding installment is scheduled for March 2026. If the city council proceeds with the repeal, it risks losing all future funding from this vital program.

Concerns Raised by City Officials

During a committee meeting, Ward 10 Coun. Andre Chabot expressed concerns about the report’s tone, suggesting it attempts to sway council decisions. He noted that the document presents a gloomy outlook regarding the implications of a full repeal.

• Chabot mentioned ongoing discussions about potential amendments to address local area plan issues.
• The report also discussed possible consequences linked to federal funding for other municipalities that faced similar compliance issues.

Two key initiatives highlighted in the report are crucial for compliance with CMHC’s requirements. These are:

• City-initiated redesignations to streamline housing approvals.
• Land use bylaw amendments to encourage the development of missing middle housing types.

Risks of Non-Compliance

The report emphasized that failure to meet housing targets could hinder the city’s commitments under the HAF Agreement. Calgary aims to build 41,858 new housing units by October 2026, having already completed 44,276 units in under two years.

Additionally, potential risks extend to other federal funding streams. These include:

• $251 million from the Canada Public Transit Fund.
• $359 million through Build Canada Homes.

These funding sources hinge on Calgary’s compliance regarding zoning and housing availability near transit stations and educational institutions. This situation creates a pressing concern for city officials as they consider the broader implications of repealing citywide rezoning.

Public Hearing on March 23

City council will hold a public hearing regarding the repeal on March 23. Officials, including Mayor Jeromy Farkas, are seeking clarity on the funding agreements during a visit to Ontario this week.

As discussions continue, city counselors are invited to gather citizen input to understand public sentiment on this critical issue. Chabot has organized town hall meetings to facilitate this dialogue.

The outcome of the council’s decision on the citywide rezoning repeal will shape Calgary’s future housing strategy and its relationship with federal funding. With potential funding losses amounting to nearly $1 billion, the stakes remain high for the city and its residents.