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By rdnewsNOW Staff

INCLUDES CONDITIONS

Red Deer awarded $12 million grant through Housing Accelerator Fund

Mar 21, 2025 | 2:51 PM

The City of Red Deer has been awarded a $12 million grant through the Housing Accelerator Fund (HAF2), distributed by the Canada Mortgage and Housing Corporation (CMHC).

The investment will be provided over the next three years, intended to support a range of housing initiatives aimed at increasing supply and improving affordability in Red Deer.

“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.”

The funding comes with conditions, however, including a stipulation that the City adopt four-units-as-of-right zoning, which would allow eligible properties to develop four residential units without public consultation or council approval. This decision will be deferred to the next city council, which will likely consider it in late 2025 or early 2026.

“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.”

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If the zoning change is not approved, Red Deer will need to return the fully value of the grant.

If approved, the funding would support policy changes and allow the City to provide grants and other incentives to encourage housing development and make it easier for landowners to expand housing options.

The City of Red Deer will be launching a public engagement process to ensure residents and businesses can learn about the grant’s impact and share their perspectives. Engagement opportunities are expected to launch in May and June.

Related:

• Red Deer city council defeats motion to withdraw Housing Accelerator Fund application
• People experiencing homelessness in Red Deer now at least 766, more than double 2022 figures
• City council endorses housing action plan initiatives for CMHC’s Housing Accelerator Fund

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