Housing Accelerator Fund (HAF) Projects

The City of Red Deer has been awarded the HAF2 grant by Canadian Housing and Mortgage Corporation. The Housing Accelerator Fund is a federal program administered by the Canada Mortgage and Housing Corporation (CMHC). It provides funding to municipalities that implement initiatives to increase housing supply and improve affordability.

Update: July 21, 2025

On July 21, 2025, an update on Red Deer’s Housing Accelerator Fund 2 (HAF2) project and public engagement was presented to City Council. The report outlined current progress, preliminary public feedback, and the federal funding conditions tied to the $12 million grant. Following this report City Council decided not to proceed with approving a blanket zoning change to enable four units as-of-right. Council also directed Administration to continue exploring opportunities to increase housing options in Red Deer in ways that better reflect community feedback and local housing needs.

You can read more about Council’s decision here:

What’s Next

  • We remain committed to preparing a final “What We Heard” report that reflects all engagement, including the online survey results and community-led submissions.
  • This report will be shared publicly and sent to all participants.
  • City Council will advocate to the federal government to remove the federal requirement for Four Units As-of-Right, and Administration will advocate to the Canada Mortgage and Housing Corporation (CMHC) administration for the same.

Background

  • The City of Red Deer was awarded the HAF2 grant by Canadian Housing and Mortgage Corporation.
  • The Housing Accelerator Fund is a federal program administered by the Canada Mortgage and Housing Corporation (CMHC). It provides funding to municipalities that implement initiatives to increase housing supply and improve affordability. 
  • In total, The City of Red Deer would receive $12 million over three years to support a variety of housing developments to increase supply in our city.
    • This money comes with conditions. One of those conditions is for City Council to adopt four-units-as-of-right into our zoning bylaw. This means no public consultation or re-zoning would be required for landowners to increase the number of units on their property, up to four units.
  • Following City Council’s decision on July 21, 2025, The City will not proceed with four-units-as-of-right.
  • Administration confirmed that, although Four Units As-of-Right will not proceed, other HAF2 projects will continue to focus on removing barriers, enabling diverse housing options, and accelerating supply.
  • Housing Action Plan Initiatives: Although Four Units As-of-Right will not proceed, other HAF2 projects will continue to focus on removing barriers, enabling diverse housing options, and accelerating supply.

Full CMHC agreement (pdf)

2024 Application Initiatives (pdf)
Note: While this was the original application, changes were made to meet CMHC requirements. The final version, reflecting these changes, is detailed in the signed agreement (Full CMHC Agreement PDF above). 

Housing Action Plan Initiatives 

The City plans to invest the $12 million in each of the following 8 action plan initiatives.

Dollars for Doors – A financial incentive program for new residential units

Provide loans and grants to non-profit and private sectors for the construction of residential units. It is anticipated that this initiative will have the largest impact on creating new units during the program period, specifically by increasing missing middle and higher-density units.

This includes:

  • grants for backyard suites and house suites, duplexes, townhouses, and apartments
  • higher-density units, such as multi-family units with more than four units, and rental units may be prioritized
  • loans to non-profits will be explored to allow the program to incentivize more housing projects for several years
  • loans for infrastructure connections directly attributable to new housing development
    • Priority will be provided to higher-density projects, but assistance will also be provided for infrastructure connection costs for lower-density missing middle units
Estimated Start Date Estimated Completion Date
April 1, 2025 April 1, 2026
Permanent supportive housing financial incentive

Increase the number of affordable permanent supportive housing units to meet the identified gap within the local housing system through the development and implementation of a financial incentive program.

This includes:

  • municipal grants to expedite the development of permanent supportive housing units
Estimated Start Date Estimated Completion Date
In Progress April 1, 2026
Rapid residential initiative

This initiative will improve administrative resources to prioritize, fast-track, and waive fees for missing middle residential development applications for multi-family developments facing barriers to being shovel-ready.

This includes:

  • improved pre-development concierge support
  • pre-zoning and subdivision
  • the preparations to pre-approval of the anticipated CMHC design catalogue, and
  • a City initiated study to identify existing infrastructure capacity to support faster approvals
Estimated Start Date Estimated Completion Date
April 1, 2026 October 1, 2026
Land disposition and development preparation for housing

This initiative will implement a process to identify an inventory of surplus and underutilized City-owned lands and buildings that can be made available for housing, including affordable, missing middle and other multi-unit housing.

This includes:

  • an assessment of implications for The City
  • a review of relevant program and policy approaches
  • a policy and guideline approach for the allocation of surplus lands and buildings for the purpose of housing development
  • A phase 1 environmental site assessment for identified parcels and the remediation of surplus brownfield sites to a condition suitable for residential development
    • the number of sites remediated will be dependent on the level of remediation required, associated costs and funding.
  • engagement with non-profit housing providers and the private sector to explore partnership, acquisition and potential lease opportunities
Estimated Start Date Estimated Completion Date
May 1, 2026 May 1, 2027
Process improvements and red tape reduction for permits and applications

This initiative will improve the efficiency of application and approval processes, resulting in more timely and transparent development decisions. The goal of this initiative is to reduce approval times for applications up to 25% for specific developments and enhance the development experience for applicants. This initiative would allow the City to have a consolidated and cohesive system for several applications such as development permits, rezoning, subdivision, and development agreements.

This includes:

  • the enhancement and expansion of the digitization of permits, applications, and agreements for the entire development process
  • internal policies and procedures to prioritize affordable housing applications
  • enhanced pre-application consultation, and
  • increased delegation of decision authority to staff

This may include:

  • improvements to the digitization of bylaws and improvements to geo-location systems and customer service systems
Estimated Start Date Estimated Completion Date
October 1, 2026 July 1, 2027
Transit proximity and policy changes to incentivise housing including 8 units not as-of-right

This initiative will amend the Zoning Bylaw and other city documents to improve regulations that incentivize residential development in proximity to transit services. Amendments will be city-wide but prioritized within 800m of high-frequency transit routes and transit hubs. The goal of this initiative is to encourage new development within 800m of its high-frequency transit route.

This includes:

  • allowing more as-of-right development
  • increased residential density including 8 units not as-of-right in more locations
  • increased building heights
  • reduced parking requirements
Estimated Start Date Estimated Completion Date
Delayed, community engagement starting in Q2 2025 December 1, 2026
Housing strategy update

This initiative will update the City's affordable housing strategy strategically looking at all the housing needs for all residents, including priority groups facing greater challenges in housing.

This includes:

  • working with the Housing and Homelessness Integration Committee to explore opportunities for collaboration to support a fulsome housing strategy
  • addition of full spectrum housing into the Community Housing and Homelessness Integrated Plan
  • amendments to the Municipal Development Plan to support housing changes
Estimated Start Date Estimated Completion Date
May 1, 2025 July 1, 2026

Frequently Asked Questions

What is the Housing Accelerator Fund?

The Housing Accelerator Fund is a Federal government grant program that was created in response to the national housing crisis. The Housing Accelerator Fund provides grant funding to municipalities to enable more residential development at a rapid pace. The program aims to create complete and walkable communities, affordable communities, and climate-resilient communities while removing barriers to housing.

The City of Red Deer has entered into an agreement with the Canadian Mortgage and Housing Corporation for $12 million to fast-track housing and eliminate housing barriers over the next three years.

When will The City receive the Housing Accelerator Fund payments?

The Housing Accelerator Fund payments are disbursed in four equal payments of $3 million. The first payment was received in Q1 2025. Future payments are expected in Q1 2026, Q1 2027, and Q1 2028. The last payment may be reduced or withheld if The City has not met it housing targets by Q1 2028.

How will the funding be used?

The funding will support various initiatives aimed at increasing housing supply and affordability. Specific projects will be determined in alignment with Red Deer’s long-term growth strategy and housing needs. Some of these projects will include:  

  • Allowing underutilized and surplus City lands to be used for housing.
  • Exploring different ways to add housing supply, which may include zoning changes, incentives, and other policy tools. 
  • Investing in grants and incentives to support residential development.
  • Improving permitting and approvals processes to make housing development more efficient.
  • Remediating lands that were previously contaminated for new housing.

These programs and policies are still being developed and will be shaped through community discussions. 

Has City Council already approved this zoning change?

No. The decision to adopt four-units-as-of-right will be made by the next City Council in late 2025 or early 2026. The broader question for Red Deer is how much density we want in our neighborhoods and what that looks like. The City will engage residents and businesses throughout 2025 to explore this question.

While the HAF2 funding is tied to a decision on zoning changes, Council will weigh public input, infrastructure needs, and long-term growth goals before making any decisions in late 2025 or early 2026. If Council does not approve the change, The City would be required to return the grant funding. 

What other municipalities in Alberta have been approved for this funding?

Several municipalities in Alberta have been approved for funding under the Housing Accelerator Fund (HAF) – first round, including Edmonton, Calgary, Airdrie, Banff, Sylvan Lake, Stony Plain, Westlock, Bow Island, Westlock, Smoky Lake and Duchess.  

How does the Housing Accelerator Fund help Red Deerians?
  • Increased housing supply at a variety of price points
  • Economic growth
  • Reduced red tape
  • More missing middle housing
  • Support for vulnerable populations including seniors, low-income families and students
How many units would the Housing Accelerator Fund incentivize in Red Deer?

Over the next three years, 1,177 new units are anticipated in Red Deer. 825 of those would occur through natural growth and 352 are anticipated to be a result of the Housing Accelerator Fund.

Why does Red Deer need to grow?

Red Deer is already growing, and not just from newcomers. More people already living here are seeking housing options that suit their stage of life. Whether it’s seniors looking to downsize, young adults moving out, or families seeking more affordable homes, this growth is already here. Adding housing gently and gradually helps meet that demand.

What does growth look like?

Growth will continue to be gradual and gentle. Smale-scale developments such as backyard suites or house suites, duplexes, triplexes and four plexes are expected to be the primary type of new development.

Can our infrastructure support growth?

Red Deer has a strong foundation in place to support thoughtful, phased growth. Through our Growth Monitoring Reports, Municipal Development Plan, and utilities and servicing plans, we know where and how we can grow without overwhelming existing infrastructure. Red Deer has been planning for future growth for years. We’re not starting from scratch, we’re building on a well-prepared foundation.

Encouraging gentle density in areas that are already serviced helps make the most of the infrastructure we’ve already invested in, like roads, water, and sewers. It’s more cost-effective than expanding outward and can reduce the long-term cost of service delivery. Adding housing where we already have pipes, roads and schools is more efficient than stretching services out to the edges of the city.

Where can I find more information? 

For updates and engagement opportunities, visit engage.reddeer.ca