STAFF REPORT: SMALL-SCALE MULTI-UNIT HOUSING (BILL 44-2023) EXTENSIONS REVIEW AND UPDATE – COASTAL FLOOD RISK AREAS

TOWN OF VIEW ROYAL SPECIAL COUNCIL REPORT

TO: Council
DATE: April 15, 2024
FROM: Stirling Scory, RPP, MCIP Senior Planner
MEETING DATE: April 23, 2024

SMALL-SCALE MULTI-UNIT HOUSING (BILL 44-2023) EXTENSIONS REVIEW AND UPDATE – COASTAL FLOOD RISK AREAS

PURPOSE:

The purpose of this report is to provide Council with information and analysis on a recommendation from the Standing Committee on Housing to explore a potential extension to the Small-Scale Multi-Unit Housing Legislation (Bill 44-2023) for lands subject to coastal flooding.

RECOMMENDATION:

Option 1 (Recommended) THAT the report dated April 15, 2024 from the Senior Planner titled “Small-Scale Multi Unit Housing (Bill 44-2023) Extension Review and Update – Coastal Flood Risk Areas” be received for information.

Option 2 There are no alternate options for this report.

TIME CRITICAL:

The report is time critical as the deadline for consideration of extension or exemption by the Province is June 1st, 2024.

BACKGROUND:

In the fall of 2023, the Province passed Bill 44: Housing Statues (Residential Development) Amendment Act, 2023, which amends the Local Government Act (LGA) to increase housing supply. The amendments require local governments to update their zoning bylaws to allow three to six dwelling units in the form of secondary suites, garden suites, attached housing, townhouses, houseplexes, etc., in single-family and duplex zones. Local governments must amend their bylaws before June 30, 2024.

Extensions

Local governments may request extensions related to infrastructure or other extraordinary circumstances through passing of a resolution by Council prior to submissions. Extension requests must fall under one of the following criteria:

• on-going Infrastructure Project that interferes with or prevents compliance with SSMUH regulations;
• infrastructure upgrades needed to address risk to public health, safety, or environment that are required due to infrastructure deficiency and changing the zoning of a parcel(s) would pose additional risk to public health, safety, and the environment; or
• extraordinary circumstances:
  • compliance within the allotted timeframe is not possible because of a necessary diversion of staff resources to attend to a major threat or risk to the community, i.e. flooding, wildfire, or other disasters that impact the community.

Exemptions

Local governments may also request exemptions for hazardous conditions. The following may be considered in making an exemption application:

• lands which are subject to:
  • hazardous conditions in which a threat or risk from the hazardous conditions which would increase if the density permitted SSMUH is achieved (i.e. 3-, 4-, and 6-units); and
  • the hazardous condition cannot be practically mitigated.

While the above conditions may exempt a municipality from including certain lands that are subject to risk, the local government must have a report prepared by a qualified professional which certifies:

1. the hazardous conditions; and
2. the threat or risk from the hazardous conditions and its proven impact that increased risk would result should the density under the legislation be achieved.

To be considered for extension or exemption, a submission must contain supporting documentation, including reports of work completed to date, a work plan, project contracts and agreements, qualified professional reports and technical studies, and budgets. The application form provided by the Province specifies that the extension or exemption application must be submitted to the Minister of Housing 45 days prior to local government’s anticipated council hearings for SSMUH related bylaw amendments. At this time, staff have prepared draft bylaws with the anticipated readings in May. Furthermore, staff have 68 (at time of Special Council meeting) days until adoption deadline for SSMUH.

DISCUSSION:

The Town’s Standing Committee on Housing (SCOH) expressed an interest in exploring options for consideration by extension from the Province’s required SSMUH housing density requirements for areas that may be affected by flooding.

The SSMUH legislation sets out conditions under which parcels that would otherwise meet the minimum required density for a restricted zone are exempt from the requirement to amend the zoning bylaw. For clarity, the new SSMUH regulation extensions or exemptions are only applicable to those lots identified as a restricted zone. Staff have prepared a map showing the SSMUH parcels (Attachment 1).

Development Permit Areas

Under the LGA, municipalities have existing authorities to regulate land development in areas that are subject to risk, which is enforced through Development Permit Areas (DPAs). The Town has existing DPAs, defined broadly as Form and Character and Environmental, which are regulated through the Official Community Plan (OCP). The two Environmental DPAs in the Town are: Natural Watercourse and Shoreline Areas, and Sensitive Terrestrial Ecosystem Areas (refer to Attachment 2). Those lands that are subject to one or more development permit areas must apply for a Development Permit Application, and where there are variances, receive approval from Council prior to commencing with development.

Coastal Flood Risk Areas

Staff reviewed the 2021 Capital Regional District’s (CRD) Coastal Flood Inundation mapping that shows areas susceptible to flooding and tsunami risk, as well as proposed flood construction levels that are recommended for relative sea level rise of 1m (estimated for Year 2100) and 2m (estimated for Year 2200). The mapping was conducted in response the Province’s Flood Hazard Land Use Management Guidelines which were amended in 2018 to add sea level rise as a coastal flooding risk.

The Town has two areas of risk, Esquimalt Harbour and the Portage Inlet. Under the worst-case scenario flood risk for the Portage Inlet at 2 m sea level rise would require a minimum flood construction level of 4.63 m, and in Esquimalt Harbour the minimum flood construction level is 5.34 m at 2 m sea level rise, estimated in 2200. In addition to the minimum flood construction level findings, the CRD considered tsunami flooding risk along Esquimalt Harbour, which identified a maximum water surface level of 8.43 m in a 1 in 2500 year event.

Staff prepared a map (refer to Attachment 3) showing the recommended flood construction levels for Portage Inlet and Esquimalt Harbour based on the 2021 CRD report. Staff observe that the lands susceptible to coastline flooding are highly correlated with lands that are designated under the environmental development permit area: Natural Watercourse and Shoreline Permit Area in the Official Community Plan (refer to Attachment 2). The recently approved 2023-2026 Strategic Plan update brings forward work on sea level rise and storm surge mitigation and adaptation policy from the previous Strategic Plan.

It should also be noted that the Province’s Flood Hazard Land Use Management Guidelines for such policies are about setting out criteria so future land use will be planned and buildings constructed in a manner that will reduce or prevent injury or loss of life, and to minimize property damage during flood events. This means that following the guidelines does not preclude the SSMUH initiatives; it is about creating resilient communities.

The Town may continue to regulate and monitor those lands subject to SSMUH and further refine existing legislative authorities via DPAs; however, the regulations are to be in keeping with the intent of the DPA to protect land. Furthermore, Council could consider a new floodplain development permit area and regulations if it is warranted following the completion of the Coastal Adaptation Plan or as part of the forthcoming OCP update which both recognizes SSMUH legislation.