FX168 Financial News (North America) — On June 30, the BC provincial government will require all major cities in BC to allow more residential units to be built on plots currently zoned as single-family homes or duplex homes. #2024宏观展望 #
Act No. 44 requires municipalities with at least 5,000 people to change their zoning regulations to allow the construction of up to 4 units on standard residential plots and 6 units on standard plots near public transportation. BC has 191 cities, 86 of which have fewer than 5,000 residents.
BC Governor David Eby said that the number of houses being built in BC is insufficient, and the law will increase supply — adding 130,000 small multi-unit housing units over the next ten years.
What is a partition?
The city government uses zoning to manage land use and determine what can be built on a particular property and what that building will look like.
For example, in Vancouver, there are agricultural areas (southern regions), industrial zones, commercial areas, and housing districts.
Within an area zoned for housing, there are many forms, many of which only allow single-family homes with roadway houses and/or second units.
Other areas allow duplexes and triplets, and some have been set up to preserve heritage homes.
Zoning plays a key role in land values.
As housing develops, allowing more homes to be built on a plot increases the value of that plot. This can be seen on streets such as Cambie Street (Cambie Street) in Vancouver, where old houses are sold at prices far above their assessed value in order to buy several units side by side to make way for mid-rise development.
What are the requirements of the BC provincial government?
Under Act No. 44, the provincial government requires municipalities to change their zoning regulations by June 30.
Areas zoned for single-family or duplex development must now allow the construction of three units on plots smaller than 280 square meters and 4 units on plots larger than 280 square meters. A single-house/duplex plot larger than 280 square meters and located near a frequently serviced bus stop must allow 6 units.
The new law also requires municipalities to update official community plans to focus on population and housing needs over the next 20 years. If the development is close to public transportation, there is no need for street parking.
According to the BC Municipal League, some cities (such as Kelowna) have fully complied with Act 44, while others are concerned about legislative provisions or lack of provincial infrastructure investment.
Some cities, such as Coquitlam and Richmond, have asked to extend the extensions allowed by legislation.
What about heritage protection?
Andy Yan, an associate professor at the Simon Fraser University (Simon Fraser University) urban research program, said that heritage protection is divided into three levels. According to Act No. 44, heritage homes designated by the federal and provincial governments cannot be demolished.
However, Yan said houses with municipal heritage protection can be demolished.
The legislation stipulates that municipalities may not use zoning, heritage modification permits, or designate heritage reserves to unreasonably prohibit or limit the use or intensity required to activate Act 44.
Local governments can still designate heritage property, but they must allow the minimum density required for small-scale, multi-unit housing on these plots, and they must not unreasonably restrict multiple developments.
Yan said the legislation is vague about the municipal authority's right to protect city-designated heritage communities, such as Queen's Park in New Westminster and the RT-8 subdivision of Kitsilano Community in Vancouver.
What are the critics saying?
The Coalition of Vancouver Neighborhoods (Coalition of Vancouver Neighborhoods) has sent a letter to Mayor Ken Sim, saying that the June 30 rezoning deadline is still too early, at least until the end of this year.
The coalition also wants the city to review infrastructure to ensure there are enough services to meet anticipated demand growth. The new law does allow municipalities to collect funds from developers for infrastructure construction.
Surrey Mayor Brenda Locke said her municipality would make necessary zoning changes by June 30, but that raised some concerns.
Locke said, “Surrey and other cities are facing unprecedented challenges due to the province's new housing legislation, which was implemented without any consultation.
“In addition to hampering the ability of cities to plan livable communities, I'm very concerned about how these unilateral measures will forever change communities. A lack of vision, combined with insufficient provincial investment in health care, education, and transportation, will put pressure on our cities' infrastructure and services. We need to work with higher levels of government to ensure sustainable and equitable growth rather than simply imposing top-down solutions.
Sim, on the other hand, fully supports Bill 44, and he said his city planners are already moving in the direction of multiple housing on traditional single-family housing plots.
The coalition said that legislative reform requires a lot of effort from local governments in a very tight time frame.
“We are still seeking support from the provincial and federal governments to support necessary infrastructure upgrades, sufficient housing space, affordable housing, etc.,” the organization said in a prepared statement.
Will it affect the economy?
Yan said it will be up to the development community to determine what fiscal impact Act 44 will have on the provincial economy.
The more units developed, the greater the impact, but compared to two years ago, developers faced higher interest rates and inflated labor and material costs.
Yan believes most small-scale multi-unit developments take place in parts of the Greater Vancouver region, Okanagan, and Vancouver Island.
Jake Fry, a developer and director of small housing in BC, said every municipality is responsible for deciding the size of four floors.
Fry said he expects to build more than 130,000 small multi-unit housing units, particularly families using unsecured lots owned by parents.
Fry said it would cost between 1.6 million to 2 million Canadian dollars to build a 4,000 square foot four-story building at Metro.
Yan pointed out that in some cases, properties with 3 living units (main unit, basement, and secondary unit) in Metro may be replaced by 4 units with higher rents.
The provincial government said it will recommend that local governments allow development stratification of official single-family residential land plots.
A Ministry of Housing spokesperson said, “We expect many small multi-unit housing developments to have stratified property rights, which will provide people with a more convenient way to buy homes, especially for those who cannot afford single-family homes in many communities. “This will increase the chances of owning a home while still increasing the supply of rental housing in the secondary rental market.
To meet anticipated demand for new home construction, the provincial government is providing $6.7 million to a Castlegar-based timber company to help fund a new facility specialising in prefabricated homes and multi-story home structures.
According to a government statement, the Kalesnik of Flumber plant will create 90 jobs and stimulate the local economy.