The Alberta government is considering new legislation to prevent the federal government from providing funding directly to municipalities for projects such as housing and transit. Prime Minister Justin Trudeau recently announced a $600 million investment in pre-fabricated construction as part of a housing-focused budget. He also promised $1.5 billion for non-profits to acquire rental units and ensure affordability. Alberta’s Social Services Minister Jason Nixon expressed concerns that the federal government is overstepping provincial jurisdiction by bypassing the province and funding municipalities and organizations directly. Nixon stated that the provincial government is best equipped to address local housing issues and is prepared to pass legislation to restrict federal funding to municipalities.
Nixon emphasized that the federal government lacks understanding of housing problems in rural municipalities and Indigenous nations in Alberta. He is advocating for more transparency in the dispersal of federal funds and expressed concern about the restrictions on the type of housing that must be built in order to access funding. Nixon is also critical of the federal government’s focus on larger cities like Calgary and Edmonton, while neglecting rural Alberta and Indigenous communities. He believes that mayors of smaller towns are at a disadvantage in accessing federal funding and that investment needs to be more evenly distributed across the province.
Cities and towns across Alberta are facing a housing crisis, with low vacancy rates and increasing rental costs. Calgary’s rental vacancy rate is at 1.4% with an average rent of $1,695 for a two-bedroom apartment, while Edmonton’s vacancy rate is at 2.4% with an average rent of $1,398. Residents like Paige Doering-Griffen have experienced significant rent increases and struggles to find affordable housing. The Canada Mortgage and Housing Corporation predicts high rental demand in Calgary due to migration from other provinces and internationally. Demand for affordable housing is expected to drive rental demand in the city.
Calgary Mayor Jyoti Gondek remains focused on addressing the city’s housing shortage through initiatives like blanket rezoning to allow for more affordable housing options. Edmonton Mayor Amarjeet Sohi welcomes the federal government’s funding announcements as they will accelerate housing construction. However, Alberta’s proposed legislation aims to prevent the federal government from bypassing the provincial government and ensure that funds are allocated strategically to address housing needs across the province. The legislation is viewed as a measure to reduce red tape and ensure that federal funds are invested in projects that benefit all communities in Alberta.
Overall, the ongoing debate between the federal and provincial governments on housing funding highlights the challenges faced by cities and towns in Alberta in addressing their housing crises. The need for affordable housing and the distribution of funds to rural communities and Indigenous nations are key areas of concern for Alberta’s government. While municipalities like Calgary and Edmonton welcome federal funding for housing projects, there is a focus on ensuring that investments are made efficiently and equitably to address the housing needs of all residents in the province.
