In November 2023, the City of Calgary and Canada Mortgage and Housing Corporation (CMHC) entered into an agreement that would see the city receive $228.5 million, over a four year period, from the federal Housing Accelerator Fund (HAF) to increase housing.
On November 21 last week, CMHC advised Calgary city administration a HAF payment of $129.5 million (the third of four, as per the agreement) was “paused pending further clarity on the status of citywide rezoning.”
The news came after repealing blanket upzoning was a main issue during Calgary’s election, with CMHC adding if the issue isn’t “clarified” by the end of March, the city’s third installment from the fund “would be relinquished.”
The entire issue requires clarity.
On September 14, 2023, then federal Liberal Housing Minister, Sean Fraser, sent a letter to then Calgary mayor, Jyoti Gondek, acknowledging the city’s application for money from HAF.
Fraser wrote, in part, “In terms of Calgary's application, I was pleased with several of the proposals slated for discussion at Council meetings over the coming days. Particularly, I was glad to see Calgary end exclusionary zoning city-wide by legalizing much needed missing middle housing, such as four-unit multi-plexes, through new zoning designations creating new land-use districts.”
“I understand that key elements of this housing action plan will either be approved or rejected at this week's Council meeting. In light of this, I wish to inform you that Calgary's Housing Accelerator Fund application will not be approved unless you follow through to create the new missing middle zoning designations of H-GO and R-CG, as you laid out in your application. Otherwise said, in order to receive a positive decision from me on your application, you must end exclusionary zoning in your city.”
Fraser’s comments did not make it into the official, legal agreement between the city and CMHC, but they lingered like low clouds in a blizzard.
In fact, council’s right whether to implement ‘exclusionary’ zoning or not, was acknowledged in point 12.3 of the contract, which reads “Nothing in this agreement will fetter the discretion of the recipient’s elected council as to future decisions by the elected council. To the extent that future council approvals are required to implement any initiatives or commitments, then it will be the responsibility of the recipient to ensure such council approvals are actively pursued.”
So, to clarify, approving banket upzoning was not a condition of the city receiving the $228.5 from HAF, which Gondek reinforced at various council and committee meetings.
In particular, during the public hearing in April 2024, when she was asked if the federal housing funding was contingent on passing blanket upzoning, she said it was not contingent, adding what the city “chose to do when it comes to rezoning, is something that council took on, on its own.”
Why did blanket upzoning get approved, if not for the money?
The previous Calgary city council was packed with ‘woke warriors’ led by Gondek, councillors Courtney Wallcott and especially Gian Carlo Carra and followed by councillors Richard Pootmans, Evan Spencer, Jasmine Mian, Raj Dhaliwal, and Jennifer Wyness, the latter two being elected to the current council.
So, it was approved because of ideologies. Oh, and the money.
Why is CMHC now getting involved by saying it could withhold $129.5 million?
Is it because the corporation is concerned that the number of homes built will be reduced? The city has already exceeded the number of building permits required to be issued per the agreement with CMHC, mostly because of record-breaking interprovincial migration to Alberta, especially from Ontario and BC, and not because of blanket upzoning.
For the sake of clarity, blanket upzoning has been a small part of permits issued and certainly has done nothing to add to housing affordability in Calgary, which is the real issue.
Blanket upzoning is not a Calgary-only bylaw. It was adopted by cities across Canada, as well as in the USA and it is embraced by all levels of government, most of them packed with woke warriors.
On December 15, Calgary city council will debate whether to repeal blanket upzoning. All conditions of the contract have been met, which raises question: Is CMHC’s pulling of $129.5 million a threat and a warning to council to vote against repealing blanket upzoning.
At any rate, this week, budget week at city council, is a good time to find $129.5 million in savings in the fourth year of the city’s services budget.
And council must repeal blanket upzoning regardless.
