Calgary Housing Funding: Farkas Challenges Federal Compliance Warnings

CALGARY, AB — Mayor Jeromy Farkas is pushing back hard against city administration warnings that his pledge to repeal blanket rezoning could torpedo hundreds of millions in federal housing dollars.

The flashpoint: an $861 million Housing Accelerator Fund agreement with Canada Mortgage and Housing Corporation that city officials say hinges on Calgary's citywide rezoning bylaw staying intact.

Farkas isn't buying it. He believes federal housing cash should reward results—new homes built—not rubber-stamp specific planning policies like blanket rezoning. And he's openly dismissive of the city report that sounded the alarm, calling it a bureaucratic safety play.

The Administration's Warning Shot

In February 2026, a city administration report landed at Calgary's Infrastructure and Planning Committee with a stark message: repealing the citywide rezoning bylaw could put the city in breach of its HAF deal with CMHC, risking the entire $861 million envelope.

The Housing Accelerator Fund was designed to incentivize municipalities to clear zoning bottlenecks and speed up housing approvals. Calgary's participation required planning reforms—including the blanket rezoning Farkas campaigned against.

City staff framed the stakes in compliance terms: undo the rezoning, risk the funding.

Farkas Calls It Theater

The mayor sees the report differently. He argues the federal government can't—and won't—withhold housing funding based on planning methodology. Results matter, not process checkboxes.

His position: Calgary can deliver affordable housing through alternative strategies, like partnering with non-profits and private developers on city-owned land near LRT stations, without blanket rezoning.

Farkas has also signaled he's not alone. He's been coordinating with other big-city mayors to advocate for federal funding models tied to housing outcomes rather than prescriptive planning rules.

The Federal Funding Landscape

Canada's National Housing Strategy has committed over $74 billion as of September 2025, targeting 183,000+ new units and protecting 359,000 community housing units. The Housing Accelerator Fund is one lever in a broader toolkit that includes the $14 billion Affordable Housing Fund, the $55 billion Apartment Construction Loan Program, and the new $7.3 billion Build Canada Homes agency.

Alberta Premier Danielle Smith weighed in last month, suggesting her government's Provincial Priorities Act—which requires provincial mediation for federal-municipal funding—was partly motivated by uncertainty around deals like Calgary's HAF agreement. Housing Minister Jason Nixon is reportedly working with Calgary, CMHC, and Ottawa to find a path that preserves funding without forcing compliance with the rezoning bylaw.

What Happens Next

The city report is now in committee, and council will ultimately decide whether to proceed with repealing the rezoning bylaw. Farkas is betting the federal government will prioritize housing supply over planning dogma.

If he's wrong, Calgary could be walking away from nearly a billion dollars in housing investment. If he's right, it could reset how federal housing programs engage with municipal autonomy.

Either way, the stakes are playing out in real time—and Calgary's housing future is the ante.