Feds kick in $228M for 6,800 Calgary homes with increased density

The federal government is kicking in $228 million for just shy of 7,000 new homes in Calgary over a four-year period, prompting praise from the mayor, who noted the province's absence

"We are living in a housing crisis," the federal housing minister told reporters at city hall on Tuesday.

"It's manifesting itself in very serious ways, both at an individual level and a community level."

Sean Fraser said, however, the money is contingent on the city relaxing zoning restrictions to allow for increased density, among other requirements.

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"We have signed agreements with eight different cities across the country," he said.

"We are seeing extraordinary change at a pace that most people did not think was possible even a few months ago. I can't find a reasonable argument that would cause anyone to say 'we should go slower' when we've got a housing crisis. We have no reasonable excuse to put the brakes on a program that is showing its worth."

That last comment was aimed at the Alberta provincial government, which was not represented at Tuesday's announcement.

Calgary Mayor Jyoti Gondek noted the absence.

"I believe — given that [the province] has a department dedicated to cutting red tape — it would be unwise to somehow insert another player into the mix when we are receiving funds that we desperately need. Today is a good example of how two governments working together is great, and three would be even better."

The federal funds will be distributed over three years, with 25 per cent up front and then 25 per cent each year until 2027, as long as program requirements are met.

The Housing Accelerator Fund is expected to build 6,800 homes in Calgary — over and above the city's projected growth.