Housing, Zoning, Official Community Plans, and Amenity Cost Charges: what you need to know about proposed changes in BC legislation

In November 2023, the BC Ministries of Municipal Affairs & Housing made four announcements about legislation or regulations that will affect all municipalities in British Columbia. The legislation received Royal Assent and was approved on November 30, 2023.

McElhanney’s urban planning team have prepared this summary of the proposed changes to help municipalities, planners, and the public navigate and implement these changes.

These announcements are summarized below, with links to the announcements. Please ensure you read the actual legislation (Bill 44-2023, Bill 46-2023, and Bill 47-2023) as this document is a summary of changes and not legal advice.

The four announcements are listed below, with detailed summaries of each one in the sections that follow.

1. More small-scale, multi-unit housing (SSMU)
2. Amenity cost charges (ACC) to streamline delivery of homes, services, and infrastructure
3. More homes near transit hubs with minimum height, density, and floor area ratio requirements
4. New standardized SSMU designs to build more homes quicker

Reach out to us at [email protected] to learn more.

November 1, 2023 Announcement

More small-scale, multi-unit (SSMU) homes coming to BC, with zoning barriers removed.

Key takeaways applicable to communities in BC:

• The proposed legislation and forthcoming regulations will permit one secondary suite or one laneway home (accessory dwelling unit) in communities throughout B.C. There are some exceptions for manufactured homes and properties not connected to water or sewer systems, among others.

Official community plans (OCPs) updates include:

• OCPs should be updated every five years, with public engagement.
• OCPs should plan for enough homes for forecast growth over 20 years.
• OCPs should include policies that address a wider range of housing types.
• Local governments are required to complete OCP updates by Dec. 31, 2025.

Zoning bylaws (ZBLs) updates include:

• ZBLs are moving away from site-by-site rezoning or spot-zoning.
• ZBLs are required to better match housing needs and OCPs.
• SSMU homes will be zoned upfront within city bylaws (eliminating long-zoning process to build a rowhome or townhouse).
• Local governments are expected to update their ZBLs by Dec. 31, 2025.

Public hearings:

• Phase-out one-off public hearings for rezonings for housing projects that are consistent and aligned with the official community plans.

Housing needs reports (HNRs):

• Local governments are required to update HNRs using a standard method for a more consistent and robust understanding of both current local housing needs and the needs over the next 20 years.
• Local governments are required to update their HNRs by Jan. 1, 2025.

Key takeaways applicable to municipalities of 5,000+ people:

ZBLs are now required to allow for:

• Three to four units are permitted on lots currently zoned for single-family or duplex use, depending on lot size, and
• Local governments must allow for at least three to four units on lots currently zoned for single-family or duplex use depending on lot size. (Lots less than 280 square metres must allow for three units and lots greater than 280 square metres must allow for four units.)
• Six units are permitted on larger lots currently zoned for single-family or duplex use and close to transit stops with frequent service, and
• Local governments must allow for at least six units on larger lots (greater than 280 square metres) currently zoned for single-family or duplex use and close to transit stops with frequent service.
• For SSMU projects closer to transit stops with frequent service, parking minimums will decrease. For projects that are within 400 metres of these transit stops there will be no minimum parking requirements and parking will be determined by home builders.
• Municipalities covered by the legislation may permit additional density if desired but cannot have bylaws that allow for fewer permitted units than the provincial legislation.
• A policy manual will be released immediately after the SSMU regulations are released to support local governments in implementing the required bylaw changes.
• Local governments are expected to amend their bylaws by Jun. 30, 2024, to accommodate SSMU requirements. Provisions are in the draft legislation to provide time extensions based on circumstance.

The intent to make funding available to municipalities was also announced, with $51 million to support local governments in meeting the new density zoning requirements, and $10 million for the Local Government Development Approvals Program administered by Union of BC Municipalities.

November 7, 2023 Announcement

Legislation introduced to streamline delivery of homes, services, infrastructure.

Fixed amenity cost charge (ACC) replaces negotiated community amenity contributions (CACs)

As local governments shift to more upfront planning and zoning, the proposed legislation provides high-growth communities with a more efficient and transparent development-finance tool called an amenity cost charge (or ACC). Instead of amenity costs and agreements coming together during the rezoning stage, this tool is part of the upfront planning process, giving builders and municipalities a better, clearer, and more transparent understanding of costs associated with a housing project from the start.

Amenity cost charges (ACCs):

• Create an authority to apply an ACC that is known upfront in the building process, rather than at the zoning stage, creating more cost certainty for homebuilders.
• Allow local governments to continue to impose charges on new development to assist in paying for the capital costs of community amenities (e.g., community centres, recreation centres, and libraries) to support livable communities in areas where they are planning for and projecting increased population growth and housing supply.

How will this work?

To implement an ACC, local governments will need to:

• Identify areas where more housing supply is planned (based on official community plans and other planning documents) and what amenities are needed to support that supply. ACCs would apply to new development in those areas.
• Determine the ACC amounts following the rules set out in legislation (for example, the capital costs must be allocated between existing users and new users).
• Consult on the development of the amenities and charge rates.
• Pass a bylaw that implements the charges.

Local governments can waive or reduce charges for affordable rental housing – as with development cost charges and development cost levies. The Province can also exempt types of affordable housing from amenity cost charges.

The amenity cost charge framework includes checks and balances, such as:?

• Charges can only be imposed on development that results in growth and benefits from the amenities.
• Charges are restricted to one-time capital costs, which must be shared between existing and new users – developers only pay the portion assigned to new users.
• Rules to ensure clarity for how the new amenity cost charges work with other tools (such as development cost charges) to prevent double charging.
• Public accountability measures, such as rules about how the charges may be spent.

Development cost charges (DCCs), also known as development cost levies (DCLs)

The legislation also makes changes to development cost charges and development cost levies (in the Vancouver Charter). Development cost charges are an existing legislative tool that allow local governments to collect funds from home builders to help pay for specific, core infrastructure needs, such as drainage, water, sewer, and roads, before a development is built. Changes through this legislation will allow local governments the flexibility to allocate funds collected from homebuilders to support additional local services and infrastructure including the fire protection facilities (fire halls), police facilities, and solid-waste facilities that support new homes. Prior to this amendment, one of the only options to recover these costs was through property taxes.

Additionally, cost-shared provincial highway projects, such as interchanges and highway exits that benefit the community, such as accessing a new housing project, are included. For example, if passed, the legislation will allow a municipality to use development cost charges to help pay for a portion of an interchange required to access a new housing project for a large housing project adjacent to a provincial highway. Previously, this would have been paid for by the municipality, often through an increase in property taxes or at the expense of other local infrastructure priorities.

How will this work?

The scope of infrastructure for which DCCs and DCLs can be collected is updated to include fire-protection facilities, police facilities, and solid-waste facilities.?

Local governments allowed to collect DCCs and DCLs for provincial highway infrastructure projects under certain conditions:

• There is a cost-sharing arrangement between the municipality and the Province.
• The highway facilities, in whole or in part, directly or indirectly service the housing development (e.g., an interchange).
• The highway facilities directly or indirectly enable the integrated functioning of provincial and municipal highway systems.
• Local governments will need to update or implement a new development cost charge bylaw to implement the new changes.

November 8, 2023 Announcement

Legislation introduced to deliver more homes near transit hubs.

The proposed legislation will require municipalities to designate transit-oriented development areas (TOD Areas) near transit hubs. These TOD Areas are defined as land within 800 metres of a rapid transit station (e.g., SkyTrain station) and within 400 metres of a bus exchange where passengers transfer from one route to another (e.g., Newton Bus Exchange in Surrey).

In designated TOD Areas, municipalities will be required to:

• Permit housing developments that meet provincial standards for allowable height and density. The minimum allowable height and density is based on tiers – at its highest in the centre of the TOD Area – and will differ based on the type of transit hub (SkyTrain stop/bus exchange) and a municipality’s size, population, and location. Note: A full list of intended allowable standards is available in the technical briefing presentation linked above.
• Remove restrictive parking minimums and allow parking to be determined by need and demand on a project-by-project basis.
• Utilize standards and details in the provincial policy manual to provide consistency in the approach to developing TOD Areas.

Municipalities will still be able to require builders and developers to add parking to accommodate people living with disabilities. Commercial parking requirements will not be affected within TOD Areas. Builders and developers will be able to build as much parking as desired for a project but will not be required to meet a minimum standard of parking units.

Following the release of regulations and the policy manual in December 2023, the lands that local governments have designated for transit-oriented growth in their official community plans will be immediately captured under the new minimum allowable density requirements included in the legislation.

For the remaining TOD Areas that require local government designation, municipalities will have until Jun. 30, 2024, to designate these areas (pending regulation).?

Where a local government’s current zoning allows for less density than the new provincial minimum, the new increased minimum density must be allowed by the local government. Local governments can approve higher density at their discretion.

Standards for transit-oriented development areas (TOD Areas):

The intent for future policy and regulations includes the following:

• Two types of provincially designated TOD Areas at Transit Hubs
• Within 800 metres of a rapid transit stations (e.g., SkyTrain).
• Within 400 metres of a bus exchange where passengers transfer from one route to another.

Permitted density within TOD Areas are based on:

• Type of transit hub (e.g., rapid transit or bus exchange).
• Proximity to the transit hub station.
• A municipality’s population, geographic location, and overall housing market broken down into three TOD Area types.

The three TOD Area types:

• Type 1A: Rapid transit hubs in Metro Vancouver.
• Type 1B: Bus exchanges in Metro Vancouver.
• Type 2: Bus exchanges in the Capital Region, Kelowna, and other medium-sized municipalities.
• Type 3: Bus exchanges in smaller-sized municipalities.

In Type 1A (e.g., SkyTrain stations) in Metro Vancouver, it is intended that municipalities will be expected to permit residential developments in TOD Areas using the following density criteria:

• Prescribed distance of 200 metres or less from a rapid-transit hub – minimum density up to 5.0 FAR, minimum height up to 20 storeys.
• Prescribed distance of 201 to 400 metres from a rapid-transit hub – minimum density up to 4.0 FAR, minimum height up to 12 storeys.
• Prescribed distance of 401 to 800 metres from a rapid-transit hub – minimum density up to 3.0 FAR, minimum height up to eight storeys.

In Type 1B (e.g., bus exchanges) in Metro Vancouver, it is intended that municipalities will be expected to permit residential development in TOD Areas using the following density criteria:

• Prescribed distance of 200 metres or less of a bus exchange – minimum density up to 4.0 FAR, minimum height up to 12 storeys.
• Prescribed distance of 201 to 400 meteres of bus exchange – minimum density up to 3.0 FAR, minimum height up to eight storeys.

In Type 2, it is intended that in the Capital Region, Kelowna, and other medium-sized communities, municipalities will be expected to permit residential development in TOD Areas using the following density criteria:

• Prescribed distance of 200 metres or less of a bus exchange – minimum density up to 3.5 FAR, minimum allowable height up to 10 storeys.
• Prescribed distance of 201 to 400 metres of bus exchange – minimum density up to 2.5 FAR, minimum height up to six storeys.

In Type 3, in smaller sized municipalities, it is intended that for transit hubs that meet the service requirements, municipalities will be expected to permit residential development in TOD Areas using the following density criteria:

• Prescribed distance of 200 metres or less of a bus exchange – minimum density up to 2.5 FAR, minimum allowable height up to six storeys.
• Prescribed distance of 201 to 400 metres of bus exchange – minimum density up to 1.5 FAR, minimum allowable height up to four storeys.

This will apply only to residential or mixed-residential land use, meaning that properties that are zoned for commercial, agricultural (Agricultural Land Reserve), and industrial land uses will not be affected. Federally regulated properties, such as the Vancouver International Airport, are exempt, as are First Nations reserve lands.

November 16, 2023 Announcement

New standardized designs will help build more homes quicker.

Through the new Standardized Housing Design Project, the Province of BC is creating new standardized, customizable, residential designs for small-scale, multi-unit (SSMU) housing built on single lots. These designs can be adopted by local governments and offered to builders and homeowners at a significantly below-market cost to expedite permitting and development.?

A request for proposals to select a consultant was issued Nov. 15, 2023, for the first phase of the project and will close Dec. 13, 2023. The consultant’s scope of work will include collaborative engagement with industry professionals and local governments to develop the design parameters that can be used to create standardized housing designs. The consultant will also support the Province in reviewing the draft and completed designs.

The Province will work with the consultant for nine months, with the goal to procure design services by spring 2024. Standardized designs and plans are expected to be available to local governments by summer 2024.

During phase two, as many as 10 different designs will be developed. The designs will comply with the BC Building Code and are expected to be as close as possible to building-permit ready, recognizing minor amendments may be required by local designers or architects to consider specific site conditions. The designs will be created for various lot sizes and configurations to be widely applicable throughout BC and are expected to help builders and homeowners add increased density to their existing properties quickly and more affordably.

The Standardized Housing Design project will:

• Make it easier for local governments and faster for builders to construct small-scale multi-unit dwellings (SSMUDs) and accessory dwelling units (ADUs).
• Lower the initial design costs and building costs for SSMUDs and ADUs for homeowners and small-scale builders.
• Provide a catalogue of quality BC Building Code-compliant building designs.
• Improve livability of unit layouts.

Key features of Phase 1 – Consultant Output:

Effective stakeholder engagement with local governments and industry experts to determine the design parameters that consider various site configurations and conditions, design layouts, and unit sizes.

Support in drafting the designer procurement materials to ensure accurate guidelines in the request for proposals and provision of ministry support in evaluating proposals received and in the selection of a qualified designer.

Provision of subject matter expertise in evaluating draft and completed designs delivered under the design contract with the selected designer.

Key features of Phase 2 – Designer Outputs:

• Six designs for SSMU infill projects with as many as four units on a lot that are buildable and marketable with a focus on affordability.
• Designs are to target urban and suburban lots where the greatest uptake would be expected.
• Designs must account for varying lot configurations, such as laneway access, interior lots, and corner lots.
• Four distinct designs for detached accessory dwelling units (ADUs) also known as laneway homes, garden suites, or garage suites.

Summary

The November 2023 announcements made by the BC Ministries of Municipal Affairs & Housing will affect municipalities in BC.

These announcements provide for:

• More small-scale multi-unit housing (SSMU).
• Amenity cost charges (ACC) to streamline delivery of homes, services, and infrastructure.
• More homes near transit hubs with minimum height, density, and floor area ratio requirements.
• New standardized SSMU home designs to build more homes quicker.

McElhanney’s urban planners are here to help communities navigate and implement these changes. Reach out to us at [email protected].

As a final note, please ensure you read the actual legislation (Bill 44-2023, Bill 46-2023, and Bill 47-2023) as this article is a summary of changes and not legal advice.