Feds cancel $12-million housing grant after Red Deer pushes back against zoning changes

The federal government cancelled a housing grant after Red Deer residents pushed back against zoning changes in the central Alberta city.

Millions of dollars earmarked for affordable housing in Red Deer have been cancelled by the federal government.

The money was part of the Housing Accelerator Fund.

It was conditional on a zoning change that would allow up to four units per residential lot.

Residents pushed back on the idea, so Red Deer council rejected the change.

That prompted the federal government to cancel its $12-million grant.

Ottawa says it’s working with the City of Red Deer on next steps.