Winnipeg agrees to Ottawa’s rules in attempt to snag housing cash

Winnipeg city council has approved major and controversial zoning changes in hopes of claiming nearly $200 million in federal housing cash.

The decision followed impassioned debate on Thursday. Supporters stressed the changes are needed to trigger more housing development, while critics argued they will reduce public input on projects (since many will no longer require public hearings), while also putting at risk green space, trees and neighbourhood amenities.

Mayor Scott Gillingham stressed the zoning changes mark critical steps to ensuring the city can leverage federal housing funds, which he expects would trigger additional private investment.

“It’s very important… This federal funding would be multiplied many times over to build much-needed housing,” said Gillingham.

The federal government was accused of forcing the city to make the changes. At one point, Coun. Russ Wyatt accused the senior government of “political extortion” for asking Winnipeg to “bolster” its funding application by making the significant zoning changes, though he later withdrew the comment.

The city hopes granting a federal request to end “exclusionary zoning practices,” as part of Winnipeg’s $192-million application to the Housing Accelerator Fund will ensure the addition of 5,277 local housing units by September 2026, including 1,342 affordable units.

The changes will:

— Legalize the construction of up to four housing units on a single lot “as-of-right” citywide;

— Legalize buildings of up to four-storeys “as-of-right” at any site within 800 metres of frequent transit corridors;

— Ensure new mid-rise housing targeted for mall sites and commercial corridors is allowed “as-of-right.”

(“As-of-right” means such developments would be permitted, removing the current requirement to have a zoning or variance application approved by a city committee and complete a public hearing.)

During Thursday’s council meeting, supporters said the changes are desperately needed.

“Exclusionary zoning has been a nightmare for affordability and growing the rental housing stock and has prevented incremental infill intensification and adaptation to changing needs,” said Dylon Martin of Yes in My Backyard Winnipeg, a pro-infill group.

By contrast, another delegate said the changes could have a negative impact on current homeowners.

“Mature trees are going to be demolished and it will ruin the life amenities of the neighbours, it will ruin the character of the neighbourhood. It will pack four times the number of people and vehicles and garbage bins and recycling bins and recreational vehicles and noise and sewage into areas that were not designed for it,” said Judith Blair.

Federal Housing Minister Sean Fraser’s office previously responded to criticism of the zoning requests by saying major changes are needed to solve a national housing crisis.

The mayor said any concerns about how and where denser residential buildings are added could be addressed through limits added to the rules in the future. On Thursday, council approved some amendments to spell out a few of those details.

One clause will limit four-storey buildings to be permitted near transit to be no more than 48 feet tall with four housing units.

However, other parameters were vague, such as a requirement for a minimum “standard lot size” to be set for four-unit housing projects, with actual dimensions yet to be determined.

Coun. Brian Mayes said such parameters fall short of setting clear standards.

“I think there was an attempt made to address some of the concerns. It’s just not nearly specific enough, so I’ll be voting against that… All of (the details are) just coming later. Well, that’s total chaos,” said Mayes, prior to the vote.

Mayes joined councillors John Orlikow and Shawn Dobson to vote against the changes.

Gillingham stressed specific limits on development will be set through bylaw changes expected in spring 2025, which will be subject to an additional council vote.

“There is an entirely separate process, subsequent to this, that (would) be a rapid rezoning process that will include a public hearing,” he said.

The mayor said the city’s previously determined infill guidelines will help shape the exact rules.

He also noted he doesn’t expect to receive the entire $192 million the city has asked the feds to provide, based on what other cities have received so far.

“What these funds will do, whatever amount they are, is leverage and open the door to private-sector investment,” said Gillingham.

The timing of when the zoning changes take effect will depend on an upcoming bylaw process, he said.

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