The federal government is cancelling Red Deer’s Housing Accelerator Fund agreement and reducing funding for Toronto and Vaughan after finding the cities failed to meet key commitments under the program.
In an update released Friday, the federal government said Red Deer was found to be non-compliant with a mandatory requirement tied to the second round of funding under the Housing Accelerator Fund (HAF).
As a result, the city’s agreement will be cancelled effective Jan. 16, 2026.
Red Deer signed its HAF agreement in February 2025, but federal officials said commitments under the program were not met by the required deadline.
Toronto and Vaughan will see funding reductions after also being found non-compliant with their agreements.
Toronto, which signed its HAF agreement in 2023, will have its funding reduced by $10 million after failing to fully meet one of its commitments under the deal.
Vaughan, which also signed on to the program in 2023, will see its HAF funding reduced by $7.4 million, with the federal government citing several unmet commitments.
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The Housing Accelerator Fund is designed to boost housing supply by encouraging municipalities to cut red tape, reform zoning rules and speed up approvals in exchange for federal funding and housing growth targets.
The government said compliance outcomes vary depending on the severity of unmet obligations, ranging from partial funding reductions to full agreement cancellations.
Funding freed up through cancelled or reduced agreements will be redistributed to top-performing municipalities that choose to expand their Housing Accelerator Fund initiatives and increase housing targets, officials said.
The application process for the program was highly competitive, with more than 540 applications received nationwide and 241 agreements ultimately signed.
According to the federal government, municipalities participating in the fund issued more than 160,000 residential building permits in the program’s first year, about 22,000 more than initially expected.
Housing and Infrastructure Minister Gregor Robertson said the government remains focused on accountability and results.
“Our government is committed to removing barriers and cutting red tape to enable more housing development in communities across Canada,” Robertson said in a statement.
“We are also committed to demonstrating the results of the Housing Accelerator Fund and being transparent, while maintaining the integrity of agreements, as we work to build more homes across Canada.”
Since launching in March 2023, the Housing Accelerator Fund has committed $4.37 billions to municipalities across Canada, with local governments estimating the funding could lead to the construction of more than 750,000 new homes over the next decade.
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