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Federal housing funds in Calgary could be at risk if citywide rezoning is fully repealed, report warns

Federal housing funds in Calgary could be at risk if citywide rezoning is fully repealed, report warns

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A new risk analysis from The City of Calgary warns that a full repeal of citywide rezoning could jeopardize federal housing funding, as Ottawa may view the move as walking back commitments tied to accelerating approvals and enabling more housing supply.

 

According to Global News, the report suggests more than $861 million in federal funding could be at risk over time. A key portion is linked to the Housing Accelerator Fund administered by Canada Mortgage and Housing Corporation (CMHC). Calgary was awarded $251.3 million (including top-ups), with $122.9 million allocated so far, and the next installment expected at the end of March 2026.

 

City administration argues the federal government treats both "targets" and "initiatives" under the HAF contribution agreement as binding, and reversing them could be interpreted as reneging on the deal. It also notes that a full repeal could be seen as abandoning two major initiatives aimed at streamlining redesignations and enabling more "missing middle" housing options.

 

In a statement cited by CityNews, CMHC said municipalities are expected to fulfill their agreements, warning that if commitments are not met or are reversed, Housing Accelerator Fund funding is at risk.

 

The matter is set to be reviewed at an Infrastructure and Planning Committee meeting next week, ahead of a public hearing scheduled for March 23, 2026, as outlined on the city’s rezoning page.