Red Deer gets to keep $3 million in Housing Accelerator funds, says PM Carney

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Alberta intends to build 25,000 new affordable homes by 2031.

Then comes the topic of permanent supportive housing, which has made front-page news in Red Deer recently with the closure of Amethyst House, and relocation of nearly 50 residents to the city’s homeless shelter.

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That news means Red Deer would have to add somewhere around 200 permanent supportive housing units to meet the need.

And that’s despite a recent Point in Time Homeless Count which found an estimated 645 people in Red Deer are experiencing homelessness.

So that $3 million should come in handy.

Red Deer Mayor Cindy Jefferies (left), speaks with Alberta Premier Danielle Smith and Prime Minister Mark Carney following a federal funding announcement in Red Deer, Alta. on July 29, 2026. (Image Credit: rdnewsNOW/Josh Hall)

In fact, the city has had those dollars burning a hole in its figurative pocket for many months, but was told in early 2026 by Ottawa that it must be returned.

That was because city council refused in 2025 — pre-municipal election — to implement four-as-of-right zoning across the city. That was the stipulation for Red Deer to receive a total of $12 million, a quarter of which it had already received.

This led to a squabble between the city and Ottawa, with the province having the city’s back.

Mayor Cindy Jefferies shared that they found out about a week ago the city would be permitted to keep it, with no further hassle.

“Permanent supportive housing is the main focus that we see. That money [or a call for interest] will begin to roll out very soon, I think early September,” Jefferies said.

“Both the Prime Minister [and his office], as well as [Alberta Minister of Assisted Living and Social Services] Minister [Nathan] Neudorf have indicated that this announcement today will help us leverage more than the $9 million we’ve left on the table in the Housing Accelerator Fund.”

Jefferies was asked how the city will ensure the bulk of the $3 million will be used to build homes, rather than get spent on consultations and bureaucracy.

“It’s a great question, and that’s one of the things council’s been pushing for. We want to see doors. We don’t want to see plans and studies and promises. So let’s figure out the strategy, and how we leverage the most number of doors for our community with that money,” she remarked.

“When you come to the table with $3 million, others will come to the table as well with funds to match or resources in kind, and that can help us turn that into much more than $3 million. We [had estimated] that the $12 million we thought we were initially going to get would have become an investment of about $40 million; so we’re going to hold on to the three, get it working, and then go for more.”

Prime Minister Carney took a question from media about the Housing Accelerator kerfuffle, saying a review of practices led to the change of heart.

“This is a more general point, and it’s a point with respect to aspects of zoning, and with respect to materials. We were reviewing some of the building processes here, how to achieve the same objectives with different methods, and not overly prescribing how to achieve [that],” Carney stated.

“One of the things we’re doing with Build Canada Homes is we’re being less prescriptive; we’re being clearer about the objectives, and we’re recognizing that there will be different solutions in different municipalities and certainly within different provinces. “

An additional statement from the Prime Minister’s Office noted that, “In the spirit of collaboration, Red Deer is using the previously advanced HAF funding to complete key commitments from the original agreement.”

During the news conference, Premier Danielle Smith commented on the win for Red Deer.

“I’m glad there was an accommodation made for the $3 million. I’ve talked with Minister Neudorf, and we recognize how important it is to continue to support Red Deer. With the new agreement, I think we’ll have more flexibility to bridge the gap,” Smith stated.

“There’s about a $9 million chip on the table; I know Mayor Jefferies will do her job of lobbying on behalf of her community, but I think [we] should look at us being here as a measure of goodwill, [and that] that the federal and provincial governments are required to work together.”

by Josh Hall | @Vancan19

Red Deer gets to keep $3 million in Housing Accelerator funds, says PM Carney

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