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

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

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

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

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

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

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

The Housing Accelerator Fund is a federal program administered by the Canada Mortgage and Housing Corporation (CMHC). It was created to help municipalities increase housing supply by removing barriers, improving development processes and supporting initiatives that accelerate the creation of new homes.

Red Deer was awarded $12 million through HAF2 in February 2025. The original agreement included a number of housing initiatives intended to increase housing supply and improve affordability.

The original HAF2 agreement provided for $12 million over three years.

The City received the first $3 million payment in 2025. Following Council's decision not to proceed with four-units-as-of-right, the original funding arrangement changed.

Council directed administration to pursue a discussion with the federal government rather than return the funding. The City has since confirmed that it can retain and use the $3 million already received.

The remaining $9 million from the original $12 million agreement is not currently available to The City.

The City is proceeding with two initiatives identified in the updated federal funding agreement:

1. Development of 25 permanent supportive housing units

The City will support the development of 25 permanent supportive housing units. Permanent supportive housing combines stable, affordable housing with supports that help people maintain housing and improve their well-being.

This initiative builds on The City's existing work to increase permanent supportive housing and address gaps in the local housing system.

2. Comprehensive housing strategy

The City will develop a comprehensive housing strategy that addresses the full housing continuum, from homelessness and supportive housing through to affordable, rental, ownership and market housing.

The strategy will have a particular focus on missing-middle housing: housing forms that provide additional choice and density between traditional single-detached homes and larger apartment developments.

The strategy will help identify housing needs, opportunities and potential actions to support a broader range of housing options in Red Deer.

The original HAF2 Housing Action Plan included eight initiatives intended to increase housing supply, improve affordability, remove barriers and support a more diverse range of housing options.

These initiatives were:

1. Dollars for Doors: financial incentives for new residential units, including backyard suites, house suites, duplexes, townhouses and apartments.
2. Permanent supportive housing financial incentive: financial incentives to support the development of permanent supportive housing.
3. Rapid residential initiative: improvements to administrative processes intended to prioritize and accelerate eligible residential development applications.
4. Land disposition and development preparation for housing: identifying surplus and underutilized City-owned lands and buildings that could be made available for housing.
5. Process improvements and red tape reduction: improvements to development application and approval processes to make housing development more efficient.
6. Transit proximity and policy changes: planning and zoning changes intended to encourage housing development and increased residential density near transit.
7. Housing strategy update: updating The City's approach to housing needs across the housing continuum.
8. Four-units-as-of-right: a proposed city-wide zoning approach that would have allowed up to four residential units on eligible properties without requiring rezoning or public consultation.

Two initiatives are moving forward

While the original HAF2 Housing Action Plan included eight initiatives, The City's current HAF2 work is focused on two specific initiatives:

• Permanent supportive housing: development of 25 permanent supportive housing units.
• Housing strategy: development of a comprehensive housing strategy addressing the full housing continuum, with a focus on missing-middle housing.

This approach allows The City to continue advancing housing supply and affordability while focusing the available HAF2 funding on locally identified priorities.

Four-units-as-of-right was one of the conditions attached to the original HAF2 funding agreement. The proposed zoning change would have allowed up to four residential units on eligible residential properties without requiring a rezoning or public consultation for the additional units.

Following public engagement in 2025, City Council decided not to proceed with a blanket city-wide four-units-as-of-right zoning change. Council instead directed administration to pursue alternative, community-supported approaches to increasing housing supply.

The City continues to explore ways to increase housing options and supply that reflect Red Deer's local housing needs.

The City's HAF2 work will focus on creating more housing options and addressing gaps across the housing continuum.

The two initiatives will:

• support the development of 25 permanent supportive housing units;
• help address housing needs for people who require supportive housing;
• provide a comprehensive picture of housing needs across Red Deer;
• identify opportunities to increase missing-middle housing;
• support a broader range of housing choices; and
• help guide future housing policies, programs and initiatives.

The Housing Accelerator Fund is one part of The City's broader work to address housing needs in Red Deer. We continue to work with community organizations, housing providers, developers and other orders of government to support a range of housing options, including affordable housing, supportive housing, rental housing and market housing.

The comprehensive housing strategy will help bring these needs together and provide a framework for future housing planning and decision-making.

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.

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.

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.

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