Calgary’s Federal Housing Funds in Jeopardy Amid Rezoning Uncertainty
Calgary city officials have recently acknowledged uncertainty regarding the precise link between federal Housing Accelerator Fund (HAF) allocations and the city’s rezoning initiatives. This admission, made in early November 2025, comes despite previous assurances to council in 2024 and July 2025 from city administration and then-Mayor Jyoti Gondek, who stated that HAF funding was not directly tied to rezoning plans.
However, a September 2023 letter from federal Minister of Housing, Infrastructure and Communities, Sean Fraser, indicated that Calgary’s HAF application approval was contingent on ending exclusionary zoning. Similarly, a March 2024 city document suggested that a fourth advance of HAF funding could be impacted if city council did not approve the proposed rezoning. New scrutiny by city officials has since brought this ambiguity to light.
This revelation carries significant weight for Calgary, a city grappling with rapid population growth and persistent housing demand. The local housing market, while showing some recalibration in late 2025, continues to face affordability challenges, particularly for detached homes and in the rental sector. City-wide rezoning, aimed at increasing housing density and options, has been a significant and often contentious issue, heavily debated during the recent 2025 municipal election campaign, with many incoming council members campaigning on its potential repeal. The uncertainty surrounding the federal funding linkage complicates these ongoing discussions and future urban development strategies.
The implications for the city’s budget and development planning could be substantial. As Calgary continues to seek critical federal support for housing projects, city officials and residents alike are seeking clearer answers to navigate these complex financial and urban planning crossroads.
