April 23rd, 2024

As mentioned in previous updates, at Council-in-Committee (CIC) on April 15th, Council directed staff to recommence advancing development applications within Transit Oriented Areas (TOAs) that involve density bonus and resume considering disbursements for the Affordable Housing Reserve Fund (AHRF). At the February 5th meeting, Council directed staff to pause density bonus-related applications that had not yet been considered and suspend future disbursement from the AHRF until a replacement funding source was implemented.  

Given the Province’s recent release of the interim development financing tools, allowing for density bonusing tools to be applied until mid-2025, the City will have sufficient time to consider the Provincial changes and retool the density bonus program.  

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

February 13th, 2024

At Council-in-Committee on February 5th a report was received for information on the impact of the provincial housing legislation on instream applications in Transit-Oriented Areas (TOAs). As per the legislation, municipalities must update their Official Community Plan (OCP) to establish TOAs by June 30th, 2024. For instream applications, the legislative changes are applicable to any project in a TOA that has not recieved First Reading prior to November 30th, 2023, or are at Third Reading stage, or been approved. Since Density Bonus is collected at Building Permit issuance, these applications have been included as instream for the purpose of the report by City staff. At the time the report was written, there are 63 active applications within TOAs, 27 of which have density bonus value associated with them. This represents an estimated $365 million in future contributions, $315 million of which the City is concerned would be generated in Tiers 1 and 2 which are most impacted by the Province’s minimum densities legislated.

Staff recommended different interim approaches for future consideration outlined below:

• That unless the Province reconsiders its position, hold applications in abeyance where they involve density bonus and have not yet been considered by Council until a replacement funding source is implemented to ensure the delivery of public amenities to support growth;
• Allow applications with density bonus that are at third reading to continue for consideration of final reading with written agreement from the applicant that they wish to proceed with registration of an appropriate legal agreement;
• Allow applications that do not involve density bonus to proceed with written indication and confirmation that they will voluntarily provide all applicable fees; and
• Communicate Council's concern regarding the financial and procedural impacts as highlighted in this report through a letter to the Province with copies to other interest holders.

For instream applications, City staff are recommending:

• For the seven applications that have achieved first reading prior to the Province's effective date of November 30th, 2023 and are currently sitting at third reading, that they be allowed to proceed for final reading, should they be willing to enter into a legal agreement with the City to ensure that they will proceed with the project as approved by Council and not seek future amendments after they have gained Council approval;
• For the 13 applications that have yet to receive first reading or new applications, staff suggest that these applications be held in abeyance until there is greater certainty around density bonus and ACCs;
• For instream applications that align with the current policy context but may not with the new Provincial minimum densities, given how far along some projects are some applicants may wish to proceed for final reading with the project as-is. In these particular cases, staff recommend to allow applications to proceed for final reading if the applicant indicates that they wish to proceed as-is and provide the fees (CACs, child care, etc. ) identified in the first reading report and provide written confirmation that they will voluntarily provide all applicable fees;
• For projects that have yet to receive first reading, but indicate that they wish to proceed under the current policy context, staff also recommend that they be able to proceed with an acknowledgment and release letter indicating that they wish to voluntarily provide CACs and other currently applicable fees.

While the City will be able to charge and collect development revenues to allocate towards community amenities through Amenity Cost Charges (ACCs), but not towards affordable housing or child care programs. Concern was expressed by City staff and Council around the uncertainty for how planned and future amenities can be funded without significant impacts on taxpayers.

Based on Council discussion, City staff will now await additional detail forthcoming from the Province, before bringing a report back with action items for implementation. The Province has indicated more information on the new ACC framework policy guide will be available in the fall.

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

At Council on February 5th, a report was also received on the impacts of the provincial legislation on the City’s Housing Affordability Program. City staff recommended that the City suspend future disbursement from the Affordable Housing Reserve Fund (AHRF), other than what has previously been committed, until either a replacement funding source can be identified, or confirmation is provided by the Province of the City’s ability to continue to collect density bonus in Transit-Oriented Areas. The City’s density bonus program is currently the AHRF’s sole revenue source and is the only means by which the City incents the delivery of affordable housing by builders.

The City will be sending a letter to the Ministry of Housing, outlining the City’s concerns and impacts from Provincial housing mandates on City’s housing affordability program and AHRF with a copy of the staff report.

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