Achi news desk-
The Alberta government is considering new legislation to prevent the federal government from going directly to municipalities and providing funding for projects such as housing and transportation.
Prime Minister Justin Trudeau announced more money for prefab construction as part of a series of announcements to boost what is expected to be a housing-focused budget. Trudeau made the announcement in Calgary on Friday with a $600-million price tag.
At a media conference in Winnipeg on Thursday, Trudeau also pledged to earmark $1.5 billion in funding for non-profits to acquire more rental units across Canada and ensure they remain affordable.
“Younger generations, like millennials and Gen-Z, feel like they’re being left behind because housing costs are a little too high,” Trudeau said Friday.
“That’s not right – and it needs to change.”
In response to the announcements, Alberta Social Services Minister Jason Nixon told reporters Friday that the federal government is overstepping provincial jurisdiction, adding that provinces are best placed to deal with local housing issues.
He said the United Conservative government is ready to pass legislation that would prevent the federal government from being able to directly fund municipalities or other organizations that are primarily funded by the province.
“We’ve been a bit shocked to suddenly see that the federal government seems to be taking housing seriously. From our perspective, that probably shows some challenges going on for the federal government, with their political ambitions for the next election,” Nixon said.
“We are also surprised to see that the federal government still does not respond to the request from the province to work with us in a serious way, and continues to avoid the provincial government to work with municipalities, which is our jurisdiction in obvious.”
Nixon also said the federal government doesn’t understand housing problems in rural municipalities or Indigenous nations across Alberta. He told reporters he wants more transparency on how the federal funds will be distributed, including whether the money will be distributed based on population size.
He also said the federal government’s restrictions on what type of housing needs to be built in order to access the funding will make housing more unaffordable for Albertans.
To access a previously announced $6-billion housing infrastructure fund, the federal government said states and municipalities will need to come up with pre-approved zoning for catalog homes and fourplexes.
“We are in the best position to be able to make sure that we can get money distributed across the province in a way that can help the whole province.
“We continue to see disproportionate amounts of investment, mainly with Calgary and Edmonton, which is needed … But there are no serious investments in rural Alberta and Indigenous nations, which is a very serious question that we see happening in the this country,” Nixon said.
“We are stuck with projects at the moment where there are municipalities, where the province and the municipalities have given a third of the funding each, but the federal government is nowhere to be seen because of their continue to come to town and hand out large sums of money but not invest in side projects in our state. They then go elsewhere to invest in those projects.
“My biggest concern on the municipal issue is if we have mayors who seem to have access to the current federal cabinet who can get money disproportionately from the Accelerator Fund … I represent places like Sundre and Rocky Mountain House. The premier represents places like Brooks, which desperately need some real investment. Their mayors cannot pick up the phone and access the federal cabinet. “
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Nixon’s statement comes at a time when cities and towns across Alberta are experiencing a housing crisis.
According to the 2024 Rental Market Report published by the Canada Mortgage and Housing Corporation, Calgary’s rental vacancy rate is 1.4 per cent, which is now on par with Toronto (1.5 per cent). The average rent for a two-bedroom apartment is about $1,695 a month, up 14.3 percent year-over-year.
Edmonton’s rental vacancy rate is 2.4 percent, and the average rent for a two-bedroom apartment is about $1,398. That’s up about 6.4 percent year-on-year.
Paige Doering-Griffen, a Calgary renter, said her rent for a 400-square-foot one-bedroom apartment in Calgary’s Bridgeland neighborhood has increased by $200, and they are now paying $1,750 a month. It was noted that many amenities in the building had been broken for a while, and many people were moving in and out of the building due to the expensive rents.
“Yes my friend we are going to move in together. We’re trying to find a place, but we’ve been looking for months… It’s competitive, and people are trying to pay more than the asking price or when you’re going to see where, there are 20 people emerging all at the exact same time,” Doering-Griffen told Global News.
“Just between me and my friend, we pay over $4,500 in rent and utilities alone. That doesn’t include parking or anything like that. So we have to try and find a place that is cheaper than that.”
The CMHC says demand for rental units in Calgary will remain high for the next few years.
“Basically we expect the ongoing drivers such as migration from other provinces in Canada and also internationally to provide rental demand for the (Calgary) region,” said Michael Mak, an economist with the CMHC. “Most of the demand we’re going to expect in Calgary will come from people looking for more affordable homes, which could be movers from BC and Ontario.”
Mak said Calgary’s vacancy rates have been declining since 2022, reflecting the demand for housing in the city. It also reflects the city’s “relatively strong economy” where people have relatively high incomes.
However, he said he expected vacancy rates to rise by 2026.
“That really reflects the amount of rental housing that is being built … like all the towers that are being put up in Calgary right now, either through recent supportive measures that have allowed more rental construction … And with more vacancies or higher vacancies in the future, that would slow down any price growth in rentals,” the economist said.
“Demand is still expected to be high as Calgary remains… a larger city in Canada where there are attractive jobs. It is also an attractive city and people are considering moving there if their housing conditions could become too expensive.”
Calgary Mayor Jyoti Gondek said in an interview with Global News on Friday that the funding from the federal government will not affect the city’s mission to build and approve more affordable housing units.
Calgary city council is currently considering general rezoning, which will allow for row houses and duplexes in neighborhoods where previously only single-family homes were built. A public hearing on the matter is scheduled for April 22.
“So the very interesting situation we find ourselves in as municipal elected officials is the push and pull between other government orders, offering their opinion or offering directives. Right now, the thing before us is a decision about how we want our city to grow and how we’re going to address the housing shortage,” Gondek said.
“We certainly appreciate when funding options are available to us, but we were elected by Calgarians to make strong decisions for them, and that’s what we continue to focus on.”
Edmonton Mayor Amarjeet Sohi said in an emailed statement Friday afternoon that he welcomes the federal government’s announcements because they will build homes faster and cheaper.
“Edmonton continues to be a leader in housing affordability because of our fast permitting timelines, permitting zoning, and investments in affordable housing. I welcome these new federal measures that will support innovation to build homes faster, cheaper and faster,” Sohi’s statement read.
“I welcome the opportunity to work with all levels of government on the priorities that are important to Edmontonians. I am wary of any interventions that will add additional bureaucracy and slow down the delivery of funding and support to municipalities.”
But Nixon said the proposed legislation will not add more bureaucracy, but reduce it.
“What it will cut down on is coming to town, issuing large sums of money and not actually investing in projects that are being built,” he said.
–With files from The Canadian Press and Global News, David Baxter and Jennifer Ivanov.
