Calgary is moving ahead with its third instalment of federal housing dollars, pocketing $64.7 million despite earlier warnings that repealing blanket rezoning could derail the entire agreement.
But the real drama is yet to come. The City of Calgary stands to gain approximately $65 million more—the fourth and final payout from Ottawa's Housing Accelerator Fund (HAF)—but only if council agrees to requirements that have already proven divisive.
The Money and the Strings Attached
Calgary signed onto HAF back in 2024 with a total commitment of $251 million spread across four payments. The city has already collected about $122 million. Federal officials at the Canada Mortgage and Housing Corporation (CMHC) confirmed Wednesday that the third cheque is coming as promised.
The catch? To unlock that final $65 million next year, the CMHC is demanding that the majority of Calgary's residential lots be zoned to allow four-unit buildings as-of-right—meaning property owners could build up to four units without special permits.
Mayor Jeromy Farkas put it bluntly: the decision now rests with council and Calgarians themselves.
"That's a discussion and debate that needs to be had by our council in full consultation with Calgarians in terms of how and if we go down that road, and whether they say the $60 million or so may be worth that level of approach," Farkas said. "It can't just be because there's money attached, it has to be: is this the right direction for Calgary to continue to grow?"
Where Calgary Stands
Currently, just under half of Calgary's residential lots meet the four-unit zoning requirement. Farkas suggested the city could reach the federal target through continued expansion of new communities on the city's outskirts, where four-by-right zoning is already in place.
The HAF program was designed as a carrot-and-stick approach to rapidly increase housing construction across Canada. It rewards cities that embrace denser, more flexible zoning with federal dollars to accelerate development.
The Blanket Rezoning Controversy
This situation stems directly from Calgary's 2024 blanket rezoning policy, which allowed multi-unit homes to be built in established neighbourhoods previously restricted to single-family housing. The policy sparked immediate backlash among residents and became a campaign issue in last fall's municipal election.
In mid-April, council voted 12-3 to repeal it—a decision that prompted CMHC warnings about funding jeopardy. Yet federal officials appear willing to work with the city on an alternative path forward, provided council commits to achieving similar zoning outcomes.
The Real Question Facing Calgary
The question now isn't whether Calgary wants the money—it's whether council believes the housing density outcomes are worth pursuing on their merits, independent of federal incentives.
Farkas made clear that the funding alone shouldn't drive policy. "It can't just be because there's money attached," he emphasized, signalling that any decision to pursue four-by-right zoning would need to reflect broader community values and growth strategy.
Calgarians interested in following this debate closely can join discussion on Calgary Forums, where local residents share perspectives on housing and development issues.
This reporting is based on statements from City of Calgary officials and the Canada Mortgage and Housing Corporation. WestNet News Staff originally reported this story based on information from CBC Calgary.