At Special Council on May 4, Council directed staff to proceed with consultation on proposed High-Density Zones and Rental Incentives. The proposed approach intends to mirror the existing incentive-based system while meeting provincial requirements. 

The approach retains the structure of a base density (subject to ACCS) with an optional 1.5 FAR of bonus density available to developers who provide secured market rental housing, including a 0.2 FAR affordable housing contribution. Developers will have the ability to satisfy this contribution through in-kind below-market or non-market units, or through cash-in-lieu deposited into the Affordable Housing Reserve Fund (AHRF), with in-kind delivery encouraged for larger projects.

Four new high-density zones are proposed to replace existing zones: 

• RA-3 High-Density Residential (replaces RM-4, RM-5, RM-6) 
• MU-2 High-Density Mixed-Use (replaces C-5) 
• MU-3 Transit-oriented Mixed-use (replaces C-7) 
• MU-4 Urban Centre Mixed-Use (new City Centre zone) 

Bonus rental density will be exempt from ACC charges other than when developers choose to convert the affordable housing component into strata units instead of affordable housing – at which point both ACCs and AHRF cash-in-lieu contributions would apply. 

Preliminary consultation with UDI will take place on Monday, May 11. More information can be found in the full report by City staff.