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.

The Housing Accelerator Fund payments are disbursed in four equal payments of $3.1 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.

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. 

In simple terms, this means that property owners could choose to build up to four residential units on eligible lots without needing rezoning approvals or public consultation. This could include options like a fourplex, duplex with suites, or a main house with both basement and backyard suites. However, this does not mean every property will be redeveloped. This change would make it easier and faster to add more housing in Red Deer.  

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. 

No. Even if four-units-as-of-right were adopted, changes would happen gradually over time, and only where landowners choose to develop. The City anticipates that 67 units would be created over three years with this change. Development depends on: 

• Landowners' choices: Homeowners and property owners decide whether to add more units. If they don’t want to, nothing changes. 
• Market demand: Builders won’t add fourplexes unless there’s a need for them. 
• Infrastructure and financing: Construction costs, servicing, and financing all play a role in whether more units are built. 

In cities that have adopted similar policies, change happens gradually over time, not all at once. Most lots stay as they are, while some evolve as new housing is needed. 

Allowing four units as-of-right residential developments in low-density zones offers several benefits. It increases housing availability and affordability by enabling small-scale, incremental density without the need for extensive and lengthy zoning changes. It promotes more efficient land use and can support diverse housing options, making neighborhoods more inclusive. By simplifying the approval process, it also reduces development costs and timelines, encouraging more developers and landowners to participate in creating much-needed housing.

Simplifying the approval process can be crucial in addressing housing shortages or economic development needs. Additionally, it minimizes the risk of delays caused by lengthy public debates and opposition, which can sometimes stall or derail important projects. Streamlined processes also provide clearer, more predictable pathways for developers, encouraging investment and innovation. Overall, this approach can lead to faster implementation of necessary developments, benefiting the community by providing timely solutions to pressing issues. 

Adopting 4 units as-of-right is a requirement of the Housing Accelerator Fund. If Council does not adopt the zoning change, The City would be required to return the $12 million in grant funding. Any expenses already incurred, including engagement costs, would be paid by The City of Red Deer. 

The City has chosen to not spend any of the funds until Council has considered 4 units as-of-right. This is to eliminate any financial risk to The City if 4 units as-of-right are not approved. 

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.  

The City plans to invest the $12.51 million in each of the following 8 action plan initiatives.

Zoning Bylaw and statutory plan amendments including 4 units-as-of-right

Implement city-wide inclusionary zoning and reduce or eliminate burdensome development regulations to encourage more missing middle housing forms.

This includes:

• allowing 4 units as-of-right on all lots in low-density zones
• reducing or eliminating parking minimums city-wide
• reviewing other zone regulations to support 4 units as-of-right including setbacks, height, site coverage, landscaping

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

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

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

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

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

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

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

No, if 4 units as-of-right is approved, there would no longer be a density cap on the number of suites in a neighbourhood. Every house within a neighbourhood would have the ability to have a suite.

Character Statements would still be applicable to the existing neighbourhoods that have them. However, changes may be required to ensure they enable 4 units as-of-right.

It is estimated that 67 new units over the next three years would be developed as a result of implementing 4 units as-of-right. New units could be developed on any residential property within the City.

• 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

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.

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.

The City of Red Deer is launching a public engagement process to ensure residents and businesses can learn about the funding and share their perspectives. Engagement opportunities will begin in May or June of this year, with details available at engage.reddeer.ca.

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