Funding Rejections Hit Six Metro Vancouver Municipalities under Housing Accelerator Fund

In recent developments surrounding the Government of Canada’s Housing Accelerator Fund (HAF), Daily Hive Urbanized has uncovered that at least six municipal governments in Metro Vancouver have experienced setbacks with their funding applications. The municipalities in question—Township of Langley, City of Langley, City of Maple Ridge, City of Port Coquitlam, City of White Rock, and City of Delta—are now left without the resources they were counting on to implement crucial housing strategies.

Understanding the Housing Accelerator Fund

The HAF represents a significant nationwide initiative, backed by a generous $4 billion pool aimed at facilitating municipal governments across Canada in their housing endeavors. The essence of the program lies in its commitment to end chronic housing shortages through a series of strategic reforms in municipal governance. Under the HAF, successful municipalities can receive funding to help streamline development policies, update community plans, reform zoning and bylaws, and catalyze projects that are critical for affordable and rental housing, as well as encouraging transit-oriented developments.

The federal government has ambitiously outlined a goal to expedite the approval of 100,000 new homes within the first three years and nearly 550,000 homes over a decade as a direct result of the fund. However, for the six municipalities mentioned, these ambitions will remain unfulfilled, at least in part due to their application rejections.

Reaction from Local Officials

Delta city councillor Dylan Kruger expressed his disappointment at the outcome, stating that their municipal application had diligently laid out tangible actions that aligned with HAF’s mandatory requirements. “It’s disappointing that this hard work will not be rewarded with needed federal funding for infrastructure in our community,” Kruger lamented to Daily Hive Urbanized. He elaborated that support from HAF could have been pivotal for enhancing staff capacity and planning critical infrastructure upgrades necessary to accommodate growth.

Acknowledging the challenges, Kruger noted that Delta is proactively updating its Official Community Plan (OCP) to respond to new legislations targeting housing affordability and supply, positioning it among the leaders in expediting application approvals within Metro Vancouver.

Competition and Demand for Funding

The Canada Mortgage and Housing Corporation (CMHC), which oversees the HAF, has explained that the rejections stem from an overwhelming demand for funding paired with a budget that is now depleted. With over 500 applications received, the competition was fierce, making it difficult for many jurisdictions, including those in Metro Vancouver, to secure financial backing. A CMHC spokesperson confirmed that the demand for the program far exceeded the allocation, and they are committed to supporting applicants through additional federal housing initiatives.

Funding Methodology

The HAF funding mechanism takes into account base funding, top-up funding, and an affordable housing bonus, designed to incentivize various housing types. For municipalities classified as “large/urban” (population exceeding 10,000), the distribution of these funds is contingent upon specific metrics:

• Base Funding: $20,000 per residential unit catalyzed by HAF.
• Top-Up Funding: Additional funds for specific housing types—$15,000 for multi-family units near rapid transit, $12,000 for middle-class multi-family units, and $7,000 for others.
• Affordable Housing Bonus: $19,000 per affordable housing unit.

Success Stories Amidst Challenges

Interestingly, the City of Coquitlam recently secured $25 million in HAF funding aimed at fast-tracking the construction of 2,800 homes over a decade, with over 650 homes expected to be built within three years. Thus far, Metro Vancouver municipalities have collectively received approximately $314 million from HAF, leaving many others wondering what could have been, particularly as cities like Vancouver ($115 million) and Surrey ($96 million) reap the benefits.

Broader Implications and Future Prospects

As municipalities outside of Metro Vancouver have also experienced varying degrees of success, the total HAF allocation province-wide has surpassed $411 million, including notable awards to Kelowna and Victoria. However, the absence of funding for the six rejected municipalities could stymie efforts to address the earnest housing crisis gripping the region.

As Metro Vancouver grapples with soaring housing costs and persistent shortages, the recent rejections underscore the urgency for municipalities to adapt their strategies swiftly and effectively. The HAF program represents both a lighthouse and a hardship—a beacon of potential funding for many, but a stark reminder of the competitive landscape in which municipalities must navigate.

Conclusion

While the prospects for affordable housing development in Metro Vancouver may seem dimmer for the municipalities denied funding under the HAF, the commitment to reforming local policies and plans remains critical. Local leaders must continue to innovate and collaborate to meet housing demands as they strive for future opportunities in federal funding and assistance, ultimately ensuring that the needs of residents are met in an increasingly challenging climate.