Repealing blanket rezoning could cost Calgary $861 million: officials

A new report warns hundreds of millions of dollars could be lost if the City of Calgary reverses blanket rezoning, up for debate next month.

Calgary could be at risk of losing hundreds of millions of dollars in federal funding if blanket rezoning is repealed, according to a report presented to a city committee Wednesday.

Scrapping the rezoning bylaw “may result in The City being deemed to be non-compliant with its HAF Contribution Agreement (HAF Agreement) with Canada Mortgage and Housing Corporation (CMHC)” to the tune of $861 million, the report states.

Councillors are set to decide the fate of the blanket rezoning bylaw next month after a public hearing.

“The City is exceeding HAF Agreement targets for market units. However, several City initiatives depend on the last two advancements of HAF funding to support the development of affordable units and its associated targets,” reads the briefing from city administration.

The report identifies three federal programs that could be impacted by next month’s decision, including some or all of Calgary’s $251 million allocation of the Housing Accelerator Fund; another $251 million earmarked for Calgary from the Canada Public Transit Fund; and an undetermined amount of Calgary’s $359 million share of the Build Canada Homes program.

Changes to the city’s housing strategy could also affect money available from the Feds’ $20 billion Canada Public Transit Fund, for which Calgary has yet to apply for.

The CMHC has pulled funding to other municipalities before. Last month, Red Deer, Toronto and Vaughan each lost millions of dollars from the Housing Accelerator Fund after the municipalities were “found to be non-compliant” with their agreements.

“Administration’s position relies on highly conditional language — repeatedly stating that funding may or could be at risk — and is predicated on several major assumptions that are not demonstrated or proven,” said Robert Lehodey with Calgarians for Thoughtful Growth, a group advocating councillors for the reversal of blanket rezoning.

“Those assumptions deserve closer scrutiny before Council relies on them,” he said.

The conversations come as Calgary continues to lead the country in building new housing. The city’s housing metric shows 27,952 homes were granted occupancy in 2025, up from 21,365 the year prior.

City officials say only a fraction of those -- about 2,800 in the last 18 months -- have come as a result of blanket rezoning.

In a letter to city officials released late Wednesday, CMHC outlined conditions it expects Calgary to meet in order to still receive funding.

“In order to remain compliant with the agreement, any updated zoning must not reintroduce exclusionary (single family only) zoning, allow for at least four units on a lot across the city without additional approvals, and must not reintroduce approval processes or other barriers that slow down development,” reads part of the memo, originally sent to Reid Hendry, the city’s chief housing officer.

“Implementing four units as-of-right zoning reduces red tape and promotes a diverse housing supply for Canadians by allowing housing developments of up to four units to not require an official plan and rezoning applications in order to proceed,” reads the CMHC memo.

The public hearing on blanket rezoning is scheduled for March 23 at city hall.