Alberta premier says she's prepared to take Ottawa to court over housing deals

Federal officials and Alberta Premier Danielle Smith clashed again on Friday over steps Ottawa is taking to boost housing construction across the country, as Smith raised the spectre of a legal battle.

Housing Minister Sean Fraser revealed Friday a revamped national housing strategy that he said will help create almost 3.9 million homes by 2031.

Smith already has pushed back against a number of prior federal announcements that promised funding for housing and related infrastructure — with or without the cooperation of provincial governments.

This week, Smith introduced what she called a "stay out of my backyard bill" in the Edmonton legislature. The legislation would require provincial oversight of future housing deals between the federal government and municipalities in the province (and in other areas as well).

In an interview airing Saturday on CBC Radio's The House, Smith said she simply wants to see her province treated in the same way as Quebec, which signed a housing deal with the federal government in October of last year. The deal with the province, rather than individual municipalities, was required by provincial law.

She said she'd be willing to challenge the federal government in court if necessary.

"We're prepared to take them to court. They cannot be using their federal spending power in asymmetric federalism," Smith told host Catherine Cullen, accusing the federal government of "playing politics" with tax dollars.

"We will not stand by while they continue to treat Alberta municipalities unfairly."

Smith also touted her own province's commitment to housing construction — a promised investment of $840 million over three years.

In a separate interview airing Saturday on The House, federal Housing Minister Sean Fraser said Smith's bill would slow down agreements that would promote home building. He also said he's confident the two governments can work together.

He said Alberta has received close to its proportional share of funding — just 0.03 per cent off, he said — under the government's housing accelerator fund program.

"If they wish to slow down the process because they want to have some agency over this, I would suggest they do what Quebec did — match us in funding and implement reforms on a province-wide basis that will allow us to achieve our goals," Fraser said.

Smith said Friday that while Edmonton and Calgary have enjoyed some success under the fund, she has to think of smaller municipalities as well.

Canada is facing a persistent housing crisis. The Canada Mortgage and Housing Corporation estimated last year that Canada will need to build 3.5 million additional homes — above projected construction — to restore affordability to the housing market.