On May 12th, Council authorized a temporary adjustment to the Density Bonus amounts payable for Building Permits (BPs) in response to current market conditions. Specifically, a 15% discount will be provided for BP applications issued before July 31st, 2025. This comes after multiple discussions with the City through our UDI Coquitlam Liaison Committee meetings.  

As noted in the report, with the current market headwinds facing high-density concrete development, there have been limited-to-no market sale transactions in the last 18-to-24 months. As such, the Density Bonus posted rates have been held constant since the rate posting on August 1, 2023, as there is no land sale evidence to support a change in the rates. Considering this, the 15% discount will be applied as follows: 

• Posted Density Bonus rates will not change. Commitment letters would continue to be valid for 12 months, and applicants would continue to need to sign a new Density Bonus commitment letter at the current posted Density Bonus rate after 12 months; 
• Any applicant who collects their ready-to-issue Building Permit before July 31st, 2025, and submits their Density Bonus payment by this date would have a one-time 15% adjustment applied to the amount identified in their Density Bonus commitment letter;  
• Similar to the existing program, the City can issue an excavation or foundation permit to support earlier payment of Density Bonus, but developers can pay Density Bonus in full, at any time at or before Building permit issuance;  
• The Density Bonus adjustment will be reviewed alongside the Density Bonus rate schedule every three months; and  
• The City has the right to eliminate the adjustment without notice, should market conditions improve and comparable market sales occur to provide evidence of land values.  

Staff will continue to monitor market conditions and may extend the period to the next Density Bonus rate review period if there continues to be no sales evidence to support changes to the Density Bonus posted rates. 

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