The Canada Mortgage and Housing Corporation (CMHC) has contacted the City of Calgary to clarify the possible consequences of the city council's decision to repeal citywide rezoning on federal housing funds. A recent report presented to the city’s Infrastructure and Planning Committee indicated that CMHC could find Calgary in breach of its Housing Accelerator Fund (HAF) Contribution Agreement if the city's rezoning efforts are completely reversed. The HAF has allocated significant funding to support housing initiatives in Calgary, underscoring the importance of maintaining the zoning measures that enable a diverse range of housing types.

Calgary was awarded a substantial sum of $251.3 million, with $122.9 million already accessed, to facilitate housing development through the HAF. The upcoming decision by the city council is critical as the next disbursement of funds from this federal initiative is projected for the end of March 2026. CMHC highlighted that the city had originally agreed to eliminate exclusionary zoning and promote a variety of missing middle housing options, pointing to the significance of adherence to these terms to continue receiving support.

In the correspondence to city administration and councillors, CMHC emphasized that any changes to the zoning laws should not revert to past restrictive practices that hinder progressive housing development. This situation presents a critical juncture for Calgary's housing strategy, as it considers the implications of its zoning regulations not just locally, but in relation to the compliance demands of federal funding mechanisms. As housing affordability becomes an increasing concern for Canadian cities, the decisions made at this moment will have lasting impacts on community development and the ability to address housing needs effectively.