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By Ashley Lavallee-Koenig

PASSED 5-4

City council endorses housing action plan initiatives for CMHC’s Housing Accelerator Fund

Sep 5, 2024 | 3:19 PM

Red Deer’s city council has endorsed eight initiatives for administration to use as guidelines to boost housing supply and improve affordability in an effort to strengthen the City’s application in round two of the Housing Accelerator Fund (HAF).

The HAF, or HAF2 in this case, is distributed by the Canadian Mortgage and Housing Corporation (CMHC). Red Deer applied to the first round of funding in 2023 but was not chosen as a recipient.

In the Sept. 3 regular city council meeting, administration provided council with an outline of the initiatives laid out in the City’s application.

The eight initiatives are:

1. HAF Zoning Bylaw and Statutory Plan amendments
2. Dollars for Doors
3. Supportive housing financial incentive
4. Rapid residential initiative
5. Land disposition and development preparation for housing
6. Process improvements and red tape reduction for permits, applications, and agreements
7. Transit proximity and policy changes to incentivize housing
8. Housing strategy update

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The design of these initiatives was informed by 10 best practices highlighted by the CMHC as guidelines for the HAF2 application process. Strong recommendations and one requirement laid out in these best practices sparked debate amongst council, with the resolution to move forward narrowly passing in a 5-4 vote.

The sticking point was a requirement by the CMHC that funding recipients end exclusionary zoning and allow four units per residential lot as-of-right. This means that on every residential property within the city, up to four units could potentially be developed without the need for public notice or council approval.

“I wasn’t surprised at the vote being as close as it was, but I assure the public that all of council will hear their voices, will consider what’s at the table. The money is not the motivator, the need for housing is the motivator,” said Mayor Ken Johnston, “but it has to be a community solution.”

He refers to public hearings and engagement sessions that are set to occur before any changes are made in the event the City is approved for the HAF2.

Councillors opposed to the motion cited concerns around the ethical expectations for public hearings, explaining that they did not feel as though they could claim to be unbiased about the four unit stipulation if the funding depends on it.

“I’m struggling with the ethics of assuring our public that, ‘Don’t worry you’re going to get a chance, down the road there’ll be a public hearing,’ despite the fact that we just endorsed these principles, and these initiatives and these best practices which is in my mind, the equivalent of accepting them,” Coun. Vesna Higham, explained her opposition.

Coun. Cindy Jefferies spoke in favour of the motion, saying, “I don’t feel like I’m saying yes to lifting exclusionary zoning today; I feel like I’m saying yes to having our community in the running for possible housing dollars. If we say no today, we will have no chance of that money,” she said, “if we say no today we are making a decision without hearing anyone from our community.”

Johnston cast the deciding vote and reassured councillors: “In this case, I find no ethical conflict. There’s plenty of questions around this, but for me, it’s not an ethical conflict because we can’t pre-assume the outcome of a public hearing or a motion of council or whatever it may be,” he said. “We need now, in my view, to be able to tell the public — who are desperate and looking for some opportunity — that we’ve kicked over every rock possible.”

Red Deer’s vacancy rate is currently 0.9 per cent, a significant drop from the 12.9 per cent rate it had in 2016.

HAF2 is only open to unsuccessful applicants from round one. This lowers the number of competing applicants compared to round one, however the amount available has been reduced from $4 billion to $400 million for this round.

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