Calgary’s Citywide Rezoning Decision: A Financial Tightrope
Calgary’s impending city council decision on the potential repeal of citywide rezoning is not just a local matter; it holds significant financial implications that could influence over $861 million in federal funding. A recent risk analysis from city administration highlights that such a repeal may jeopardize compliance with the Canada Mortgage and Housing Corporation (CMHC) under the Housing Accelerator Fund (HAF).
The Context of Citywide Rezoning
Citywide rezoning, initiated by the previous council, altered Calgary’s default residential zoning to accommodate a broader range of housing types. This reform was intended to tackle the city’s rising housing demands by allowing more duplexes and row houses on single properties. As part of this initiative, Calgary secured $251.3 million from the federal HAF, although only $122.9 million has been allocated to date.
The significance of the upcoming vote on March 23 cannot be understated. If the council opts for a full repeal, they may create a ripple effect that would classify Calgary as non-compliant with the HAF Contribution Agreement, thereby threatening the next funding installment due in March 2026.
The Warning Signs from City Administration
According to the report slated for discussion at the Infrastructure and Planning Committee meeting next week, CMHC could interpret the city’s actions as a violation of their agreement. The report specifically calls attention to two initiatives that are contingent upon adherence to the current zoning policy:
- City-Initiated Redesignations: Aimed at streamlining approvals to enhance housing supply.
- Land Use Bylaw Amendments: Focused on promoting missing middle land use districts.
These initiatives directly align with the federal government’s goals of fostering increased housing availability. Failing to comply with these requirements could not only impact HAF funding but also jeopardize other federal grants like the Canada Public Transit Fund and the Build Canada Homes initiative.
Reactions from City Councillors
Responses from city council members range from concern to skepticism about the report’s intentions. Ward 10 Councillor Andre Chabot remarked that the report’s tone suggests a “doom and gloom” approach intended to influence the council’s decision. He believes there should be room for amendments to the local area plans rather than a full-scale repeal.
Chabot’s sentiments echo those of Ward 8 Councillor Nathaniel Schmidt, who expressed concern that losing access to such substantial federal funding—potentially nearing $1 billion—would place additional strain on city resources and inhibit the city’s ability to meet the needs of its residents.
The Risk of Non-Compliance
The report does underscore the gravity of non-compliance. Previous examples illustrate the consequences for other municipalities, such as Red Deer, Vaughan, and Toronto, where funding was either reduced or entirely revoked for failing to adhere to HAF agreements. Although Calgary has exceeded housing creation targets—building over 44,000 units against a goal of 41,858 by October 2026—the potential loss of future funds would be devastating for ongoing and future projects aimed at affordable housing.
A critical note in the report is the linkage between meeting housing targets and maintaining funding. The failure to meet these goals would undermine the city’s commitments, providing yet another reason for council members to tread carefully in their deliberations.
Community Engagement and Future Implications
Despite the financial ramifications, city council members acknowledge their public duty to hear constituents’ voices. Both Chabot and Schmidt are actively seeking input from residents to gauge public sentiment surrounding the issue. Chabot is conducting town hall meetings, while Schmidt highlights the need for the council to be responsive to the community’s opinions.
Mayor Jeromy Farkas and other city officials are reportedly meeting with CMHC in Ontario to gain clarity on the funding agreements, suggesting proactive steps are being taken to navigate these complicated waters.
Conclusion
Calgary’s decision on citywide rezoning comes at a crucial juncture, posing a significant dilemma that intertwines local governance with federal accountability. While the financial stakes are high, the council’s decision will also reflect the city’s commitment to addressing its housing crisis comprehensively. As the public hearing on March 23 approaches, all eyes will be on Calgary’s city council to see how they choose to balance their constituents’ demands with the looming threat to essential funding.
In this intricate dance between local needs and federal expectations, the outcome will undoubtedly shape the future landscape of Calgary and its residents for years to come.
