Questions remain on future of federal housing funding in advance of possible blanket rezoning repeal in Calgary

Uncertainty lingers in Calgary council chambers on the future of a significant amount of federal housing funding, as blanket rezoning is set to return for a public hearing next month.

“It looks like we have an answer, and its looks like that answer is ‘no,'” said Ward 4 Coun. DJ Kelly, after reviewing a letter from the Canada Mortgage and Housing Corporation (CMHC) Wednesday.

“In order to remain compliant with the agreement, any updated zoning must not reintroduce exclusionary (single family only) zoning, allow for at least four units on a lot across the city without additional approvals, and must not reintroduce approval processes or other barriers that slow down development,” the letter reads. “We look forward to working with Calgary on options to achieve this in the coming weeks.”

City administration states the federal government interprets both “targets” and “initiatives” in the Housing Accelerator Fund agreement as binding commitments and reversing them could be viewed as reneging on the deal.

“Is there something we can do in the bylaw we’re currently taking a look at, in the repeal motion that we’re taking to public motion, in order to also address what we’ve heard from the federal government today?” Kelly continued.

Alternatively, Ward 10 Coun. Andre Chabot says undoing blanket rezoning is only a small part of the agreement.

“Only small elements of the funding are directly tied to the blanket zoning so I think there’s a way we could continue to receive funding without impacting the agreement,” he said.

Mayor Jeromy Farkas says that the projects being reviewed by the federal government include about 300 homes of the 28,000 that were built in Calgary in 2025, adding that there are a number of other strategies the city can turn to.

“We have a housing strategy built out with 98 different recommendations, only 1 of those recommendations is related to blanket rezoning,” he said. “When you look at Calgary delivering on housing, we’re firing on all cylinders.”

The public hearing to decide whether blanket rezoning will be repealed is scheduled for March 23.