THOMAS: Liberals influence the City of Calgary by imposing specific housing

THOMAS: Liberals influence the City of Calgary by imposing specific housing requirements.

Calgary Mayor Jyoti Gondek is understandably frustrated with the major federal party leaders who have made election promises aimed at addressing Canada's housing crisis without consulting her beforehand.

Is the mayor worried about being sidelined? Both the Conservative and Liberal parties have unveiled their respective plans to tackle the housing crisis. Conservative leader Pierre Poilievre proposed removing the GST on new homes valued under $1.3 million. Subsequently, Liberal leadership candidate Mark Carney presented a modified version of this idea—exempting the GST for first-time buyers purchasing homes under $1 million. Currently, the GST is waived on new homes priced below $450,000. Carney also claimed he would facilitate the construction of 500,000 new homes each year using modular building techniques.

This raises the question of whether this initiative is connected to the European modular construction firm Modulaire Group, which Brookfield Business Partners acquired in 2021, during Carney's tenure there. Regardless, Canada's ability to build 500,000 new homes annually is questionable; historically, the average since 1977 has been around 192,000. Both proposals would have the federal government take on the role of a developer—what could possibly go wrong? They would also require municipalities to lower development charges, expecting those savings to be passed on to buyers.

Currently, land developers and builders are responsible for financing infrastructure in new communities and connecting these developments to the city's systems, as per city agreements. On April 10, Mayor Gondek stated that these plans alone wouldn't resolve existing issues and emphasized the need for the City of Calgary to be included in discussions. "They need to engage with us to understand our needs, and addressing housing alone won't solve the larger problem," the mayor said, highlighting the necessity for updated infrastructure. "If we cannot afford to construct roads and wastewater systems, simply adding housing won't remedy the situation," she pointed out. "We are a valuable resource for the federal government; they just need to reach out to us," she added. It's essential to recognize that this issue is as much about politics and finances as it is about solving the housing crisis. The federal Liberal government has already imposed its vision for housing development in Calgary. In November 2023, the city effectively partnered with the federal government by accepting $228.5 million from the Liberal Housing Accelerator Fund (HAF) over three years, aimed at increasing home construction in the city. The HAF funds are designated to support seven initiatives, including accelerating downtown housing, investing in transit-oriented development, expediting housing approvals, incentivizing secondary suites, funding infrastructure, and promoting non-market housing projects, according to a city statement.

The agreement contains several stipulations, notably the removal of zoning regulations for single-family homes in Calgary, which led to widespread up-zoning by-laws and a surge in approvals for new multi-family developments across various neighborhoods. Recently, influenced by this agreement, certain city council members approved a controversial development on the site of the former Viscount Bennett High School, which plans to construct between 1,200 and 1,500 multi-family housing units. Why the emphasis on multi-family homes? The HAF agreement incentivizes the city with additional funds—dubbed "top up funding"—for approving an increasing number of multi-family home permits. "Top up funding is intended to incentivize specific housing types," the agreement states. "The funding will depend on the housing category and the projected increase in permitted units. There is no top up funding for single detached homes," it clarifies. In March, the city celebrated receiving an extra $22.8 million in bonus funding, proudly announcing it had issued permits. However, it seems the permits would have been issued regardless, given that nearly 100,000 new residents have moved to Calgary in the past year and a half, necessitating new homes. Land developers and builders deserve credit for securing those permits promptly, ensuring accommodation for incoming residents (who we warmly welcome!).

If the mayor is apprehensive about the federal government dictating how Calgary should grow and where and what kinds of homes should be constructed, it may be too late to change that trajectory. By Myke Thomas