Calgary secures $65M in federal housing funds; final payout hinges on zoning changes

Calgary’s mayor is calling it a major win for the city’s housing strategy after Ottawa released another instalment from the federal Housing Accelerator Fund (HAF).

The latest payment is worth more than $65 million and is part of a broader agreement aimed at speeding up homebuilding and increasing density across Canadian cities.

Calgary has now received three of the four scheduled payments under the program. But Mayor Jeromy Farkas says the final instalment will come with firm conditions from the federal government.

“To receive the final payment next year, we need to have a plan in place that allows for at least four units on a majority of the lots across the city,” Farkas said.

The mayor noted that just under half of Calgary’s residential parcels currently permit that level of density.

City council will need to determine how to meet that requirement in the months ahead.

The Housing Accelerator Fund is a $4 billion federal initiative administered by the Canada Mortgage and Housing Corporation (CMHC). It provides direct funding to municipalities to help reduce red tape, encourage density, and accelerate the construction of new homes.

Ward 10 Coun. Andre Chabot says he’s open to exploring ways to meet the federal density requirement, but he wants a more flexible approach following council’s recent repeal of blanket rezoning.

“That’s why I keep talking about a built‑in Calgary solution,” Chabot said. “Maybe what we can do is an average citywide, but not necessarily make it specific as to four for every unit or every single lot.”

Coun. Dan McLean echoed that sentiment, arguing that any zoning changes must make sense for residents.

“For myself personally, I would forgo a payment than say anything by right anywhere,” he said.

Blanket rezoning reversal presents challenges

Earlier this month, council voted to repeal the city’s blanket rezoning bylaw after eight days of public hearings.

The 2024 bylaw had allowed a wider range of housing types, including rowhouses and townhomes, on land previously zoned exclusively for single‑detached homes. Its goal was to increase density and address Calgary’s growing housing shortage.

Under the repeal, zoning changes take effect on Aug. 4. Applications submitted before that date will be processed under the current rules.

Afterward, any future R‑CG developments will once again require individual land‑use redesignations.

The shift means council must now find a new path to meet the federal government’s density expectations if Calgary hopes to secure the final HAF payment.

Debate on how to proceed is expected to continue through the year as the city works to balance neighbourhood concerns and housing demands.