Update: August 2026
The City of Red Deer was awarded $12 million through the federal Housing Accelerator Fund 2 (HAF2) in February 2025. The Housing Accelerator Fund is administered by the Canada Mortgage and Housing Corporation (CMHC) and supports municipalities in increasing housing supply and improving affordability.
The original HAF2 agreement included a number of housing initiatives, along with a federal requirement for The City to allow up to four residential units as-of-right on residential properties.
Following public engagement and consideration by City Council, Council decided in July 2025 not to proceed with a blanket four-units-as-of-right zoning change. Council remains committed to increasing housing options and supply through approaches that reflect Red Deer's local housing needs and community context.
In January 2026, Council directed administration to seek a discussion with the federal government regarding the HAF2 requirements and The City's housing priorities.
The City has since confirmed that it can retain the $3 million already received through HAF2. The City is proceeding with two specific initiatives using this funding:
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:
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:
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.
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:
While the original HAF2 Housing Action Plan included eight initiatives, The City's current HAF2 work is focused on two specific initiatives:
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:
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.