Earlier this month, Airdrie penned a deal with the federal government for almost $25 million to build more homes in the fast-growing city.
The money comes from Ottawa’s Housing Acceleration Fund (HAF), a $4 billion initiative to increase housing availability nationwide.
The HAF’s other goals include supporting the development of complete, affordable, inclusive, equitable, diverse, low-carbon, and climate-resilient communities.
For the nine out of ten Canadians who believe they will never own a home, the HAF sounds too good to be true.
What strings are attached to the almost $25 million the federal government is handing Airdrie?
Airdrie’s Commitments
According to the agreement, funding for Airdrie depends on the city fulfilling seven commitments through its HAF’s Action Plan.
Commitments include streamlining development approvals, encouraging more secondary suites, and reducing parking restrictions.
Airdrie has also agreed to reduce downtown revitalization development costs and make some public lands available for housing as well.
If the city can hold up its end of the deal, it will receive funds from the federal government in upfront and annual 25 percent installments.
Ottawa estimates that funding will help Airdrie build more than 900 homes over the next three years, which is welcome news for the rapidly growing city.
Desperate For Housing
Alberta is the fastest-growing province in Canada.
More than 17,000 people from other parts of the country moved to our province from July to September 2023.
Much of Alberta’s recent population growth is linked to the Alberta is Calling campaign launched in August 2022, which promised better pay and more affordable housing to Canadians from other provinces.
The provincial government ended the campaign in December last year.
The Alberta is Calling campaign helped grow the province’s population by more than four percent in the year it was active.
Airdrie was among the fastest-growing communities.
The city’s population skyrocketed from almost 62,000 in 2016 to over 80,000 in 2023.
But without provincial funding or the proper infrastructure to support its rapidly growing population, Airdrie was suffering from its own success.
Alberta’s Local Government Fiscal Framework (LGFF) is supposed to ease the strain on communities like Airdrie via provincial funding.
The LGFF will provide $724 million in funding, with $382 million going to Edmonton and Calgary. The remainder goes to local governments.
According to Alberta Municipalities, an organization representing 260 of the province’s municipalities outside of Calgary and Edmonton, this amount is far from what is needed.
Alberta Municipalities claims municipalities across the province need $1.75 billion to keep up with population growth.
“The formula is good — it’s just $1 billion short,” said Alberta Municipalities President Tyler Gandam of the provinces funding model.
A Helping Hand
A good formula is not good enough.
Through the LGFF, mid-sized cities benefit more than others, creating a funding gap between municipalities.
Strathcona County is a glaring example of this gap. Before the LGFF was implemented, the municipality received $26 million annually.
This year, Strathcona County conservatively estimates $12 million in LGFF funding for its 2024 Budget.
“With the loss of provincial funding over the last several years and the increased costs to maintain assets, we are experiencing a widened infrastructure funding gap,” Strathcona County Mayor Rod Frank told The Sherwood Park News.
The situation is much the same in Airdrie.
According to Airdrie’s 2024 Housing Needs Assessment, one in five households struggle with housing affordability.
To make matters worse, almost 2,000 of the city’s households are living in core housing need, meaning they are at risk of homelessness.
With limited financial support from the provincial government, communities nationwide tried their luck applying to the fed’s HAF program.
Airdrie is one of 179 Canadian communities that have landed deals with the federal government via the HAF.
The Bare Minimum
The HAF is a step in the right direction but isn’t perfect.
Airdrie, Banff, Westlock, Bow Island, and other communities were lucky enough to have their HAF applications accepted.
Others were not as lucky, including Lethbridge and Medicine Hat.
You could argue that the HAF’s $4 billion is nowhere near enough money to deal with Canada’s housing crisis.
But if funding from the HAF is a drop in the lake, Alberta’s LGFF is a drop in the ocean.
Communities across the province, especially those with aging infrastructure, need additional funds, and provincial funding is insufficient.
Premier Danielle Smith quickly criticized the HAF, stating, “We need fairness, we need equity, and we’re not seeing that with the current model.”
Ontario Premier Doug Ford echoed a similar sentiment, stating that the federal government is sticking its nose where it doesn’t belong.
According to Canada’s Housing Minister Sean Fraser, provincial governments, including Alberta, can make the same changes the federal government is pushing for.
“If the provincial governments want to get on board by matching funding, they’re more than welcome. I would welcome their participation. But there’s no circumstance where I’m going to slow down. We need to move as fast as we can,” explained Fraser.
The Clock Is Ticking
Alberta’s spat with Ottawa doesn’t matter. What matters is the hard-working Albertans fighting tooth and nail to survive.
Housing is a fundamental human right, yet owning a house, let alone keeping it, is becoming harder by the day.
Neither the LGFF nor HAF will solve Canada’s housing crisis. Unfortunately, there is no one complete solution.
But one thing is certain: bigger steps must be taken, and more funding, from both the province and the federal government, is necessary.
“I’ve always said that when it comes to housing, the feds have the money, the province the responsibility, but the cities have the problem. So we have to get all orders of government together,” Halifax Mayor Michael Savage told Global News.
Owning a home shouldn’t be a luxury for hard-working Albertans.
But unless greater action is taken, the thought of being a homeowner will continue to be a dream for many.
