Report to Council Re: Provincial Housing Legislation (Bill 35-2023, Bill 44-2023 and Bill 47-2023) – 2024/2025 Workplan

Bill 44 – 2023 Housing Statutes (Residential Development) Amendment Act

Bill 44 – 2023 introduces housing options in the form of secondary suites in single-family dwellings, detached accessory dwelling units (ADUs) such as garden suites, triplexes, houseplexes (four or more units) and townhomes that local governments must permit on all properties zoned for a single-family dwelling and/or duplex without a rezoning. Local governments may no longer zone exclusively for single-family or duplex dwellings, except in areas that are exempt from this legislation.

The small-scale, multi-unit housing (SSMUH) changes include:

• Secondary suites and/or accessory dwelling units are allowed province-wide in all single-family residential zones, in all municipalities and regional district electoral areas.
• Small-scale, multi-unit housing must be permitted on each parcel of land that is currently zoned exclusively for single-family or duplex residential use. In addition, the requirements apply in single-family and duplex zones that already allow a secondary suite and/or an ADU. The number of dwelling units that must be allowed by parcel size are:
  • A minimum of three housing units on parcels that are 280 m² or smaller
  • A minimum of four units on parcels greater than 280 m²
  • Some exemptions apply.

A map provided as Attachment 1 identifies the approximate number of parcels within the Town that meet the above criteria. There are approximately 9 parcels that have lot areas less than 280m² and approximately 1691 parcels that have lot areas greater than 280m²; however, further analysis will be undertaken through the zoning bylaw update process.

• Six units of small-scale, multi-unit housing must be allowed near frequent bus service on single-family and duplex residential lots that are greater than 280 m². No minimum parking requirements will be permitted within 400m of prescribed frequent bus stops and a maximum of 0.5 parking spaces per unit within 800m of prescribe frequent bus stops. Frequent transit bus stops are defined as bus stops with at least one route with the following service:
  • Monday to Friday: A bus must stop at least every 15 minutes, on average, between the hours of 7 a.m. and 7 p.m
  • Saturday and Sunday: A bus must stop at least every 15 minutes, on average, between the hours of 10 a.m. and 6 p.m.

There are four bus stops along Island Hwy (rapid transit corridor) and two bus stops on Helmcken Road near Trans-Canada Highway (refer to map in Attachment 2). There are approximately 413 parcels within 400m of prescribed frequent bus stops that are eligible for a minimum of six dwellings; however, further analysis will be required through the zoning bylaw update process.

In addition to the above requirements, Bill 44-2023 also introduces legislation related to public hearings, Housing Needs Reports (HNR) and further updates to the Official Community Plan (OCP) and Zoning Bylaws. The new legislative requirements are summarized as follows:

• Public Hearings: One-off, site-by-site public hearings for rezonings have been phased out for residential and mixed-use projects consisting of at least 50% housing (e.g. housing above commercial and/or institutional uses) that are consistent with OCPs. Public hearings will continue to be required whenever local governments update or develop new OCPs or consider rezonings for projects that are not consistent with the OCP. This requirement came into effect on November 30, 2023.
• Housing Needs Reports: HNRs describe current and anticipated housing needs. The Town completed its first HNR in 2020 in accordance with the legislative requirements at the time. Now, all local governments must update their HNRs to quantify the current and anticipated housing needs over the next 20 years.
• Official Community Plan: under the new housing legislation, OCPs must identify areas for residential development to meet anticipated housing needs for at least the next 20 years and align with the HNRs. It must also include policies for affordable housing, rental housing and special needs housing. Municipalities must review and update OCPs every five years with public engagement to plan for enough homes to reflect forecasted growth over the next 20 years (rather than five) and include policies that address a wider range of housing types (e.g., affordable housing, rental housing, housing for families, etc.)
• Zoning Bylaw: Municipalities must align zoning bylaws with their OCPs and HNRs on a regular basis, including updates to land use and density regulations to accommodate the total number of housing units needed over at least the next 20 years in accordance with the HNRs.

Bill 46 – 2023 Housing Statutes (Financing Tools) Amendment Act

Bill 46–2023 was introduced to give local governments the financial tools to collect additional revenue to assist in the cost of expanding infrastructure and amenities to support community growth. For example, the Province has updated the scope of infrastructure eligible to be funded through Development Cost Charges (DCCs) to now include fire protection facilities (e.g., fire halls), police facilities, and solid waste facilities. In addition, the DCC framework has been updated to include cost-shared provincial highway projects, such as interchanges and highway exits. Municipalities will now be able to collect and use DCCs to finance their portion of highway facilities.

The Province has also introduced a new development finance tool called Amenity Cost Charges (ACCs) to allow local governments to collect funds for amenities like community centres, recreation centres, daycares, and libraries from new development that results in increased population. The new ACC tool contains mechanisms that ensure transparency and cost certainty for developers, local governments, and the public. The Town may start the planning processes to use the new ACC tool and DCC categories.

Bill 47 – 2023 Housing Statutes (Transit-Oriented Areas) Amendment Act

Bill 47-2023 requires some municipalities to designate Transit-Oriented Areas (TOA) near transit hubs. These TOAs are defined as areas within 800 metres of a rapid transit station (e.g., SkyTrain station) and 400 metres of a bus exchange and West Coast Express that the Province has listed in regulations. The Town has been identified as one of the 51 municipalities that must establish a TOA. The Province has identified the bus exchange on Hospital Way adjacent to Victoria General Hospital as a Tier 2 TOA (refer to map in Attachment 3); therefore the Town must amend the OCP and Zoning Bylaw as follows:

• Pre-zone land within 200m or less of the Hospital Way bus exchange to allow residential and mixed-use buildings up to 10 storeys and a density of up to 3.5:1 Floor Space Ratio.
• Pre-zone land within 200m – 400m of the Hospital Way bus exchange to allow residential and mixed-use buildings up to six storeys and a density of up to 2.5:1 Floor Space Ratio.
• Local governments can approve densities that exceed the provincial regulations at their discretion.
• Remove restrictive parking minimums for off-street residential and allow parking volumes to be determined by market need and demand.

DISCUSSION

Workplan

Under the new Provincial housing legislation, the Town is required to undertake updates to the Zoning Bylaw and Official Community Plan (OCP) and complete an Interim Housing Needs Report to address housing need and supply over the next 20 years. The Province has published policy manuals to assist local governments with implementation of the various housing initiatives (refer to Attachment 4, 5 and 6). Furthermore, the Province has organized a webinar series for local government staff to learn more about the technical details of the new housing legislation and ask questions of subject matter experts.

Summarised in Table 1 below is an anticipated workplan to undertake eight required and recommended projects to be completed over the next two years to satisfy the Provincial requirements. Given that several details are still being worked out at the Provincial level, the proposed workplan will likely evolve as more details are provided to municipalities. Additional projects may be added to the scope.

Table 1: Anticipated Workplan

Housing Initiatives 1 and 2 (Zoning Bylaw updates) must be completed by June 30, 2024 (Zoning Bylaw updates), and Housing Initiative 3 (Interim Housing Needs Assessment) must be completed by December 31, 2024. By December 31, 2025, Housing Initiatives 5 (OCP updates), 6 (additional Zoning Bylaw updates) and 7 (Amenity Cost Charges Bylaw and updates to DCC framework) must be completed. Housing Initiatives 4 (Streamline Development Processes) and 8 (Build-Out Modelling and Tracking) are not required, but these two projects are recommended to assist with the implementation of the housing legislation.

The Province provided $207,254.00 (Homes for People grant funding) to the Town towards updating the zoning bylaw, OCP, Development Cost Charge (DCC) bylaw, Housing Needs Assessments, as well as the development of a new Amenity Cost Charge (ACC) bylaw. This funding can also be used to hire staff and/or consultants in support of these activities. The Province has indicated that some of the housing initiatives could be funded by the Growing Communities Fund, subject to Council’s discretion. Other Provincial grant opportunities may be available in the future, such as the Local Government Development Approvals Process Funding (LGDAP), that may be of interest to the Town.

Given the short timeframe, it is recommended that Council immediately commit $37,500.00 of the Homes for People grant funding to initiate work on Housing Initiatives 1, 2 and 3 to meet the Province’s deadlines, instead of deferring to the annual budget discussions.

Public Engagement

The new legislation phases out one-off and site-by-site public hearings for rezonings for housing projects that are consistent with the Official Community Plan. This includes mixed-use projects that are at least 50% housing (i.e., housing above commercial and/or institutional uses). The Province envisions more frequent opportunities for people to be involved in shaping their communities earlier in the process, when the OCPs are updated every five years in accordance with with the legislation. Public hearings will continue to be required whenever a local government updates or develops a new OCP or considers rezonings for projects that are not consistent with the OCP.

With respect to implementing the SSMUH initiative, the Town’s opportunity to seek community input through working groups or advisory committees will be limited, in accordance with the legislation. The Province has established site standards and building designs to assist with the zoning bylaw updates to fulfill the Provincial requirements. The Town will have some discretion with respect to establishing zoning criteria for these housing types; however, Council and staff must meet the Province’s parameters and the intent of the legislation.

SUSTAINABILITY/CLIMATE CHANGE IMPACTS:

There are no direct sustainability or climate change impacts associated with the workplan. However, the new housing legislation will trigger population growth, which will certainly require significant investments in environmental and social infrastructure (i.e., parks, schools, recreational facilities, libraries, etc.) to meet the needs of a growing community and region. From a climate change perspective, a potential reduction in parking in Transit-Oriented Areas and within 400m of a frequent transit stop may encourage residents to use other modes of transportation, such as transit and cycling, which may result in a reduction in community greenhouse gas emissions over time.

FINANCIAL IMPLICATIONS:

As noted above, the Town’s small Development Services team has been presented with a significant amount of work to be completed over the next two years in addition to other Council priorities. It is important for Council to consider the workplan in Table 1 when requesting Development Services staff to carry out other tasks in 2024 and 2025 with limited staff capacity and resources. Implementing the workplan over the next two years coupled with working on other Council priorities and maintaining an exceptional level of service for day-to-day operations, additional staff resources will likely be necessary in the future. It is important to note that there will be competition for limited resources of consultants and staff given that municipalities from across the Province are challenged by the same requirements and timelines.

The Homes for People grant funding provided by the Province would only cover approximately half of the total budget anticipated to implement the housing initiatives mandated by the Province. Other sources of funding such as grants, Growing Communities Fund and Casino Revenue will have to be considered for the implementation of the Province’s housing initiatives. The largest budget item is the update to the OCP (approx. $400,000), which also takes into consideration other potential updates that Council may wish to undertake at the same time to maximize staff and consultant time and resources. Further discussions on these aspects of the OCP would occur at a future Committee of the Whole meeting.

ALTERNATIVES:

There are no alternatives for Council’s consideration. The scope of work is required of all municipalities by the Province.

CONCLUSION:

Under Bill 44-2023 (small-scale, multi-unit housing) and Bill 47-2023 (Transit-Oriented Areas), the Town is required to amend the Zoning Bylaw to permit a minimum of three to four dwelling units on lots currently zoned for single-family dwelling and/or duplex, allow a minimum of six dwelling units within 400m of prescribed frequent transit stops, and establish a TOA on Hospital Way, adjacent to the VGH. In addition, the Town must update the HNR to better understand the housing need over the next 20 years, and update the Zoning Bylaw and OCP to ensure both documents are aligned with the HNR. The Province has introduced new finance tools, such as Amenity Cost Charges, to assist local governments to pay for amenities like recreation facilities, daycares, libraries, etc., by collecting funds from new development to meet the social, recreational and cultural needs of a growing community. In addition to the bylaw changes, other updates to OCP policies and design guidelines and development approval processes are also warranted.

All of this work will require additional funds and staff resources in order to meet the expedited timeframe directed by the Province, address other Council priorities and maintain an exceptional level of service. Staff will continue to inform and seek guidance from Council as more information is provided by the Province and the workplan is further developed.

CONCURRENCE:

REVIEWED BY:

ATTACHMENTS:

• Attachment 1: Short-Term Multi-Unit Housing Map
• Attachment 2: Frequent Transit Bus Stops Map
• Attachment 3: Transit-Oriented Areas Map
• Attachment 4: Short-Term Rentals Policy Guidance for BC Local Governments dated December 2023
• Attachment 5: Provincial Policy Manual & Site Standards for Small-Scale Multi-Unit Housing
• Attachment 6: Provincial Policy Manual: Transit-Oriented Areas dated December 2023
• Attachment 7: Resources, Policy Manuals for Housing Regulations Summary Slides Ministry of Housing dated December 7, 2023
• Attachment 8: Letter from the Province dated December 21, 2023