Rezoning Reversal: Is Calgary Gambling Away $129 Million in Federal Housing Funds?
By The Numbers: The High Stakes of Housing Dollars
Just when Calgarians thought the longest public hearing in city history had finally settled our housing density debate back in May 2024, our City Council has, once again, opened the door to uncertainty. In a decisive 13-2 vote on December 15, 2025, Council initiated the process to repeal the blanket rezoning policy that allowed for duplexes, townhouses, and rowhouses (R-CG zoning, for you policy wonks) to be built without individual public hearings across much of our city. But this isn't just about what kind of homes might pop up in your neighbourhood; it's about cold, hard cash – specifically, a significant chunk of federal funding.
Our city was initially slated to receive a hefty $251.3 million from the Canada Mortgage and Housing Corporation's (CMHC) Housing Accelerator Fund (HAF). We've already pocketed approximately $122 million of that. However, with the repeal process underway – which will amend the land use bylaw and likely involve another public hearing in March 2026 – CMHC is now casting a wary eye our way. They've stated that while the funding isn't officially paused, fulfilling those agreements is paramount. If commitments aren't met or are reversed, HAF funding is firmly 'at risk.' This puts a staggering more than $129 million in federal funding, including a critical $64 million third installment, on shaky ground if clarity isn't reached by March 31, 2026.
Who Pays? You Do, Calgary.
So, what does this mean for you, the average Calgarian navigating Deerfoot Trail or grabbing a coffee downtown? This isn't abstract government accounting; it's about the resources available to tackle our very real housing challenges. A 2023 letter from then-housing minister Sean Fraser clearly linked ending exclusionary zoning – a key component of our blanket rezoning policy – to a positive decision on Calgary’s HAF application. Losing out on over $129 million would mean fewer federal dollars flowing into initiatives designed to accelerate housing starts, potentially impacting everything from infrastructure upgrades supporting new developments to programs aimed at increasing housing affordability. While the City of Calgary insists it's in full compliance and has even exceeded its housing targets (starting construction on 44,276 units by mid-2025, surpassing a revised goal of 42,667), CMHC's warnings are difficult to ignore.
The Opposition: A Promise Kept?
For many Calgarians, particularly those aligned with various community associations, this repeal motion isn't a retreat, but a necessary reset. Opposition groups have long argued that "Housing choice already exists in Calgary. What is missing is deeply affordable non-market housing options. Blanket up-zoning will not supply this." Ward 10 Coun. Andre Chabot, who spearheaded the motion to repeal, echoed this sentiment, stating, "The gist of my motion is to look at starting over and trying to get this right." It's no secret that many newly elected councillors, including Mayor Jeromy Farkas, campaigned on promises to either repeal or significantly alter the policy following the October 2025 municipal election, reflecting a strong current of public sentiment.
The Verdict: Another Public Hearing Looms
As we head into 2026, the stage is set for yet another potentially lengthy and passionate public hearing in March, focused entirely on the proposed repeal of blanket rezoning. Calgarians will have another chance to make their voices heard, but the stakes are undoubtedly higher this time around. With CMHC's explicit warnings about federal funding, our city is playing a high-stakes game. The outcome won't just shape what kind of homes we build and where; it could directly impact our access to critical federal resources earmarked for the very housing growth we desperately need. Keep your eyes on City Hall, Calgary – this story is far from over.
