City of Red Deer awarded $12 million Housing Accelerator Fund grant

The City of Red Deer has been awarded $12 million in funding through the Housing Accelerator Fund (HAF2) from the Canada Mortgage and Housing Corporation (CMHC).

This investment, provided over the next three years, will support a range of housing initiatives aimed at increasing supply and improving affordability in Red Deer, the city announced in a media release on Friday, March 21.

“The City of Red Deer is pleased to receive this investment through the Housing Accelerator Fund,” said Mayor Ken Johnston.

“We are grateful to the Government of Canada for recognizing the importance of supporting mid-sized municipalities like Red Deer as we work to address housing challenges and plan for future growth.”

A key condition of the funding is the adoption of four-units-as-of-right zoning, which would allow up to four residential units on eligible properties without requiring public consultation or rezoning approvals. A decision has not been made, but will be considered by the next city council in late 2025 or early 2026. If the zoning change is not approved, the city would be required to return the full $12-million grant.

In addition to supporting policy changes, if approved, the funding will allow the city to provide grants and incentives that encourage housing development, making it easier for landowners to add new housing options in Red Deer.

The City of Red Deer is launching a public-engagement process to ensure residents and businesses have the opportunity to learn about the grant’s impact and share their perspectives. Engagement opportunities will be available in May or June, with the goal of providing Red Deerians with clear avenues to participate in discussions and help shape the future of housing in our community.

“The need for housing in Red Deer continues to grow, and this funding will help us take meaningful steps toward increasing supply,” said city manager Tara Lodewyk.

“At the same time, we recognize that four-units-as-of-right zoning is a significant policy decision for our community that next Council will decide. We will be developing a consultation process that recognizes the gravity and need for citizens to share their thoughts on increasing housing supply in our city.”