Housing funds for Calgary at risk if blanket rezoning repealed: report

Millions of dollars in federal housing money could be jeopardized if Calgary City Council proceeds with a full repeal of citywide rezoning, according to a new report from city administration.

The warning comes as council prepares to revisit the controversial blanket rezoning bylaw, which was passed to help meet federal housing targets but has faced ongoing political and public pushback.

Mayor Jeromy Farkas, who has pledged to repeal the bylaw, maintains that federal funding should be tied to results rather than specific planning approaches. He argues Calgary’s strong record on new home construction should speak for itself.

“Certainly myself and other big city mayors from coast to coast to coast will be strongly advocating for the money to be tied to results,” Farkas said in November 2025. “It really should be about building the needed housing rather than being so tied to a specific approach.”

However, the administration’s report, heading to the Infrastructure and Planning Committee next week, states that the federal government interprets both “targets” and “initiatives” in the Housing Accelerator Fund (HAF) agreement as binding commitments. Reversing them, the report says, could be viewed as reneging on the deal.

A full repeal of citywide rezoning could be interpreted as abandoning two key initiatives: streamlining approvals through city‑initiated redesignations, and amending land‑use bylaws to promote “missing middle” housing.

Coun. Andre Chabot criticized the report’s tone, suggesting it overstates the consequences.

“The report very much sounds like doom and gloom, that ‘don’t do this or else,’” Chabot said. “The truth is that our decisions cannot be fettered based on the decision on the agreement.”

The Housing Accelerator Fund is administered by the Canada Mortgage and Housing Corporation (CMHC), which confirmed it is closely monitoring Calgary’s deliberations.

In a statement to CityNews, CMHC said they “expect 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 funding is at risk.”

Beyond the HAF, the report warns that other federal funding streams, potentially worth millions, could also be affected, including money earmarked for transit and other major infrastructure. Unlike the HAF, however, those agreements have not yet been finalized.

Some community advocates argue the report is overstating the risks. Robert Lehody, a volunteer with Calgarians for Thoughtful Growth, said the language used is unnecessarily alarmist.

“They use the word ‘could,’ so this is just creating noise,” Lehody said. “It’s creating confusion, it’s not transparent and providing facts to council or Calgarians, and it’s frankly embarrassing.”

The Infrastructure and Planning Committee will review the report on Wednesday. A public hearing on the proposed repeal of citywide rezoning is scheduled for March 23.