Red Deer has been awarded $12 million in federal housing funding.
But there is a catch. The City of Red Deer must update its Zoning Bylaw to allow up to four housing units on residential lots. It is one of the key conditions of the Canada Mortgage and Housing Corporation Housing Accelerator Fund 2 grant, which includes other measures aimed at increasing housing supply and affordability.
The four-unit-as-of-right requirement means that property owners could choose to build up to four residential units on eligible lots without needing rezoning approvals or public consultation. Options could include a four-plex, duplex with suites, or a main house with both basement and backyard suites.
The change would also eliminate an existing 15 per cent cap on the percentage of homes allowed to have secondary suites in neighbourhoods.
City council has not yet made a decision on whether it will accept all of the grant conditions. Among the questions that remain unanswered so far from CMHC is whether exemptions for historic and character neighbourhoods and homes will be allowed. An answer is expected this summer.
Before making any decision, the future city council will want to hear from residents and staff have launched the "Growing Red Deer, Together" initiative.
"We want to hear from residents about how Red Deer should grow, and whether the conditions tied to the Housing Accelerator Fund are the right fit for our community," says Mayor Ken Johnston in a statement accompanying a city call for public feedback either online or at upcoming public open houses.
Even if Red Deer's Zoning Bylaw changes, the city has said previously that redevelopment of lots offering four housing units is expected to happen slowly and will be driven largely by market demand. The city also has the authority to require certain conditions be met, such as having enough parking available.
Johnston said the next city council, following the October municipal election, will get a full summary of feedback gathered before it makes the decision, late this year or early 2026, to tweak the city's Zoning Bylaw to be eligible for the funding.
An online survey at engage.reddeer.ca/growing-red-deer-together asks respondents what they see as the city's biggest housing challenges and what kind of housing they would like to see.
Other questions ask what advantages people see to allow more density, such as allowing younger or older family members to stay close to home, or what disadvantages could emerge, such as noise and parking problems or the impact on property values.
Open houses, billed as Community Conversations, are being held at Westerner Park's Heartland Room on June 17 and June 19 from 5 to 7 p.m.
"This is a big conversation about the kind of community we want to be," says city senior planner Kim Fils-Aime. "We know the need for housing is growing, and we want to hear from residents about how to do this in a way that works for Red Deer."
It is estimated that by 2031, Red Deer will need more than 6,000 new homes, about a 15 per cent increase in housing supply. While the city's population is growing, many established neighbourhoods have fewer residents, often because children have moved away.
That means, the city says, more housing options are needed to meet demand, support aging residents, attract young people, and revitalize communities.
