Report dated May 11, 2026 from the Director of Development Services re: Density Bonus Zoning Bylaw Amendments
Staff report recommending the repeal of green roof density bonus provisions to align with new provincial legislation (Bill 16).
TOWN OF VIEW ROYAL COUNCIL REPORT
TO: Council
DATE: May 11, 2026
FROM: Leanne Taylor, MCIP, RPP, Director of Development Services
MEETING DATE: May 19, 2026
DENSITY BONUS ZONING BYLAW AMENDMENTS
RECOMMENDATION:
THAT staff prepare the necessary Zoning Bylaw amendment that would authorize the amendments to Zoning Bylaw No. 900, 2014 with respect to repealing the green roof density bonus provision from the RT-1 Zone: Attached Residential, RM-1 Zone: Ground-Oriented Multiple-Unit Residential, RM-2 Zone: Apartment Residential, C-1 Zone: Community Commercial, C-3: Service Commercial, C-4 Zone: Neighbourhood Commercial, C-5: Tourist Commercial, C-7 Zone: Business Park Commercial and C-7A Zone: Business Park Commercial (Automotive).
AND THAT Council does not hold a public hearing on the Zoning Bylaw amendments as the proposed amendments are consistent with the Town’s Official Community Plan.
AND FURTHER THAT staff give notice of the Zoning Bylaw amendments, in accordance with Section 467 of the Local Government Act, prior to first, second and third reading of the Zoning Bylaw amendment.
ALTERNATIVE OPTION:
THAT Council does not proceed with the density bonus bylaw amendments.
It is not recommended that Council proceed with the alternative option as it is a provincial legislative requirement to bring existing density bonus bylaw requirements into compliance with the legislative amendments by June 30, 2026. The Local Government Act appears to be silent on what happens if a local government does not undertake the zoning bylaw amendments to bring the density benefit zoning into compliance with the legislation. However, the most likely result would be that the density benefit would be found to be invalid, and the extra density could not be given to the property owners.
Moreover, when the current Zoning Bylaw was adopted in 2014, it was recommended that density bonus and amenity provisions not be embedded in the Zoning Bylaw because the province was in the process of implementing new policy guidance, and this would result in a misalignment between the Town’s Zoning Bylaw and future provincial legislation. The provincial legislation (Bill 16) was adopted in 2024.
PURPOSE:
The purpose of this report is to present Council with information, analysis and recommendations on density bonus bylaw amendments to align Zoning Bylaw No. 900, 2014 with the provincial legislation by the mandated deadline of June 30, 2026.
BACKGROUND:
Provincial Legislation – Density Bonussing
Density bonussing is an existing land use planning tool that provides developers with the option to build to a higher density in exchange for providing amenities (i.e., park improvements, public art, active transportation facilities, community space, etc.,), or affordable housing. The province adopted Bill 16 – Housing Statutes Amendment Act, 2024, with the intention of enhancing clarity in the use of this tool and consistency with inclusionary zoning.
Local governments may continue to secure amenities through density bonusing by specifying the number, type, and extent (quantity in area) of amenities that are required in exchange for increase in building density. However, there are new rules and requirements when amending or adopting density benefits zoning bylaws, including:
- opportunities for consultation with affected parties; and
- completion of a financial feasibility analysis that considers certain matters to ensure that the bylaw requirements are properly adjusted to local conditions and would not deter development.
Once a density benefits zoning bylaw is adopted, annual provincial reporting is required if a local government obtains specific amenities, affordable and/or special needs housing, or payment of money secured in a density benefits reserve fund.
Town’s Zoning Bylaws
The Town’s preceding Zoning Bylaw, Land Use Bylaw 1990, No. 35 did not contain density bonus provisions for green roofs. Density bonus provisions were introduced during the creation of Zoning Bylaw No. 900, 2014. Council may wish to note that it was recommended at the time not to embed density bonus and amenity provisions in the Zoning Bylaw because the province was in the process of implementing new policy guidance, and this would result in a misalignment between the Town’s Zoning Bylaw and future provincial legislation. The provincial legislation (Bill 16) was adopted in 2024.
Current Zoning Bylaw – Density Provisions
Green Roof
Following a legal review, there are nine standard residential and commercial zones in Zoning Bylaw No. 900, 2014 that are impacted by the provincial legislation as these zones contain density bonus language. The specific density bonus provision that needs to be addressed is related to green roofs. The provision falls under “Lot Density” in all affected zones, as follows:
| Floor Space Ratio Bonus Density provision of 75% green roof | Base Density + 0.1 |
|---|
Table 1 below summarizes the zones, which are affected by the green roof density bonus provision.
Table 1
| Zone | Floor Space Ratio Bonus Density provision of 75% green roof (base density + 0.1) |
|---|---|
| RT-1 Zone: Attached Residential | Yes |
| RM-1 Zone: Ground-Oriented Multiple-Unit Residential | Yes |
| RM-2 Zone: Apartment Residential | Yes |
| C-1 Zone: Community Commercial | Yes |
| C-3: Service Commercial | Yes |
| C-4 Zone: Neighbourhood Commercial | Yes |
| C-5: Tourist Commercial | Yes |
| C-7 Zone: Business Park Commercial | Yes |
| C-7A Zone: Business Park Commercial (Automotive) | Yes |
Initially, it was incorrectly understood that the green roof density bonus provision in the Zoning Bylaw would not be considered a “communal amenity”; and therefore, the Town would not be required to undertake consultation and financial analyses to retain this “amenity” in the Zoning Bylaw. However, following a legal review, it counts as an amenity, in accordance with the legislation.
Underground Parking
The abovementioned zones also contain a density provision regarding underground parking. Following a further legal review, it was concluded that this specific provision could be grounded in section 525(1)(b) of the Local Government Act (LGA) as this section allows a local government to set required parking standards. Section 525(1)(b) states the following:
“S.525(1) A local government may, by bylaw, do the following:
(b) “establish design standards for spaces required under paragraph (a), including standards respecting the size, surfacing, lighting and numbering of the spaces”.
Given this legal interpretation of section 525(1)(b), the provision to allow greater density for underground parking could potentially be interpreted as a minimum parking requirement and could remain in the zones. As an example, the Lot Density provisions for the RM-2 Zone are summarized in the table below. If a project proposes a density of 1.1:1 floor space ratio (total floor area/total site area) then underground parking must be provided.
| Floor Space Ratio, Base Density | 1 |
| Floor Space Ratio Bonus Density with provision of 80% underground parking | Base Density + 0.1 |
| Floor Space Ratio Bonus Density provision of 75% green roof | Base Density + 0.1 |
Community Amenity Contribution Policy
The Town’s Community Amenity Contribution Policy No. 6400-041 was approved in July 2019. The Policy allows the Town to negotiate community amenity contributions at the time of rezoning in exchange for density, including cash contributions, and community amenities identified in the Official Community Plan, Parks Master Plan and other Town documents. The Policy is still valid and can continue to be applied to rezoning applications.
ANALYSIS:
Implications of Provincial Legislation
As noted above, a local government must follow new rules and requirements when amending or adopting density bonus bylaws, including existing density bonus provisions in Zoning Bylaws. The new rules and requirements pertain to consultation with affected parties, financial feasibility analyses and cash-in-lieu of affordable housing units or amenities.
In the 2026 Budget, there is a non-capital project (N-118) to initiate a Zoning Bylaw update. One of the objectives in the project summary is to develop inclusionary housing and density bonus bylaws to require affordable housing as a component of new residential development and other amenities, in accordance with the LGA. In addition, there is another non-capital project (N-117) in the 2026 Budget to develop an Amenities Cost Charges (ACC) Bylaw, a finance tool that allow local governments to collect funds from new development for amenities such as community centres, recreation centres, daycares, and libraries to support an increase in population. A substantial amount of work on potentially establishing inclusionary zoning, density bonus and ACC bylaws will occur this year, and will require consultation and financial feasibility analyses. The timing to undertake this work did not align with the province’s deadline.
To meet the legislated provincial deadline of June 30, 2026, it is recommended that the green roof density bonus provision be repealed from the applicable zones at this time. A copy of the draft Zoning Bylaw amendment is provided in Attachment 2. The financial feasibility of this amenity from a density bonus perspective could be reconsidered when the Town undertakes work on inclusionary zoning, density bonus and ACC bylaws later this year.
In the meantime, the OCP contains Policy IS2.1 Environmentally Sensitive Design that encourages green roofs, among other design solutions, as a means of reducing stormwater runoff and the heat island effect. Staff can continue to encourage green roofs in developments where is it a feasible option. However, it would not be tied to density bonussing if Council approves the proposed zoning bylaw amendments.
Impacted Properties
There are approximately 57 properties that would be impacted by the zoning bylaw amendments. Of these properties, only three properties were developed after the adoption of Zoning Bylaw No. 900, 2014. The developments either complied with the permitted base density, or there were renovations that did not increase floor space. No developments have utilized the green roof density bonus provision, and therefore, the proposed zoning bylaw amendments would not create non-conformities. A reason for no uptake of this green roof density bonus provision in new developments is likely due to it not being financially and/or structurally viable to construct a green roof even with the added density bonus.
Density Provisions
There would be no changes to the existing base densities in each of the affected zones. For clarity purposes, the underground density bonus provision in the affected zones has been amended by adding 0.1 FSR to the original “base density” instead of describing density provision as “base density + 0.1” (refer to Attachment 2).
When amending the Zoning Bylaw, it must be consistent with the OCP. The properties that are currently zoned RM-1 are either designated Small-Scale, Multi-Unit Housing or Residential in the OCP. The current RM-1 Zone contains a density bonus provision for underground parking, which is not consistent with the densities in the OCP. Given that the RM-1 Zone permits single-family dwelling, duplex, rowhouses and townhouses, which don’t typically include underground parking, it is recommended that density provision concerning underground parking is removed from the zone for consistency purposes.
Public Consultation
Section 565.11(2) of the LGA states that no consultation is required to repeal a density benefits zoning bylaw. Furthermore, section 464(2) of the LGA states that a local government is not required to hold a public hearing if the zoning bylaw amendments are consistent with the OCP. However, the legislation requires that the Town give notice to the public of the proposed zoning bylaw changes prior to first reading of the bylaw, in accordance with the section 467 of the LGA. The Town’s Public Notification Bylaw No. 1106, 2023, stipulates the methods of public notification. The public may still provide written comments or speak during the public participation period at the Council meeting when the bylaw is being introduced to Council for first reading.
The recommendation is not to hold a public hearing given that the proposed zoning bylaw amendments are consistent with the OCP; however, if desired, Council may choose to hold a public hearing.
Community Impact: The properties impacted by repealing the green roof density bonus provision will no longer have an incentive to install green roofs in new developments. However, the Town has seen no uptake of this density bonus provision likely due to it being financially unviable to build. Later this year, staff will undertake work on a density bonus bylaw. This work would be a comprehensive review that considers a range of amenities that benefit the community through consultation and a financial feasibility analysis.
Financial Implication: The Town incurred legal fees as part of this zoning bylaw review.
Inter-governmental Relations Impact: N/A
ALIGNMENT:
The recommended option aligns with the Town’s following core guiding documents as follows:
- Strategic Plan: N/A
- Official Community Plan: N/A
- Other Policy Documents: N/A
PUBLIC PARTICIPATION GOAL:
The desired level of public participation for the recommended option is:
[x] Inform [ ] Consult [ ] Involve [ ] Collaborate [ ] Empower [ ] N/A
TIME CRITICAL:
This report is time critical to meet a provincial deadline of June 30, 2026.
| CONCURRENCE: | Initials | Comments |
|---|---|---|
| Chief Administrative Officer | SS | I concur with the recommendation. |
| REVIEWED BY: | Initials |
|---|---|
| Director of Corporate Administration | N/A |
| Director of Finance | N/A |
| Director of Development Services | LT |
| Director of Engineering | N/A |
| Director of Protective Services | N/A |
ATTACHMENT:
Attachment 1: Red-Line Version of Proposed Zoning Bylaw Amendments Attachment 2: Draft Zoning Bylaw Amendment
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