$129M in federal housing money frozen as Calgary reconsiders rezoning

The City of Calgary could lose millions in federal funding grants for affordable housing if it turns its back on blanket rezoning, the CMHC said Tuesday.

A large chunk of federal housing funding earmarked for Calgary is being paused because of the city’s plan to repeal its rezoning bylaw.

According to a memo sent to city council, roughly $129 million from the Canada Mortgage and Housing Corporation (CMHC) is being paused “pending further clarity on the status of citywide rezoning.”

The funding is part of a larger agreement, under the Housing Accelerator Fund (HAF), through which Calgary had initially secured more than $250 million to support housing initiatives city-wide after adopting a citywide rezoning bylaw in 2024.

The funding hold comes as municipal leaders prepare to debate a motion to repeal its blanket rezoning policy.

The motion, which passed the executive committee 13–2, is scheduled for a full vote at council on Dec. 15.

“We are going to be pushing very hard to make sure that the housing policies locally here in Calgary make sense for Calgarians,” said Mayor Jeromy Farkas Tuesday.

“At the end of the day, I report to Calgarians, not bureaucrats in Ottawa, and I’m going to be pushing very hard for zoning rules that make sense locally here in Calgary, while still delivering the affordable housing that Calgarians need.”

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Supporters of the repeal argue the original rezoning failed to deliver on promised affordability and instead raised concerns about neighbourhood character, aging infrastructure and lack of community input.

Meanwhile, those in support of the bylaw warn that reversing the policy may jeopardize ongoing housing supply efforts, especially now that federal funding is on the line.

The paused federal funds support several key housing strategies, including promoting secondary suites, converting downtown office space into residential units and accelerating affordable housing development.

City administration has acknowledged the risk: if the rezoning question isn’t resolved by March 31, 2026, Calgary could forfeit the next installment of HAF money, which would mean even more money lost.