At the Planning and Development Committee meeting on July 9th, Council approved an amendment to the Rental Use Zoning Policy (RUZP), specifically to enable the full balance of surplus RMr density to be utilized for purpose-built market rental units. The report intends to address requests to explore policy amendments that have the potential to spur market rental development. By increasing the proportion of market units within a development, the return on investment generally improves, and by extension, the project is more likely to obtain sufficient project financing. 

The report proposes that Stream 2 of the RUZP be amended to remove the requirement for applicants to provide one CMHC median market unit for every market rental unit proposed utilizing surplus RMr density and instead enable the full balance of surplus RMr density to be utilized for purpose-built market rental units. It is further recommended that this measure also be extended to applications processed under the previous iteration of the RUZP, which required rental units delivered utilizing surplus RMr density to be vacancy-controlled. 

In terms of eligibility, the proposed amendment is recommended to apply to all proposed developments, including those requiring rezoning approval, those with adopted rezonings that are pre-construction, and those with adopted rezonings under construction (pre-occupancy), that have fully met the rental replacement (Stream 1) and/or the inclusionary requirements (Stream 2) of the RUZP, and that do not yet have an adopted Housing Agreement registered on title. More specific eligibility requirements are included in the report. 

The proposed amendment is intended to bring greater parity between the RUZP and the proposed approach outlined in the April 2025 report on Inclusionary Rental Requirements, encourage proposals for additional market rental units, and support the viability of active or adopted RM applications during this period.  

More information can be found in the full report by City staff.