At the Standing Committee on Policy and Strategic Priorities on November 10, Council approved various initiatives in principle to address immediate development viability challenges. The report responds to challenging financial conditions and discussions in the UDI Vancouver Development Viability Working Group. 

Changes to Below-Market Rental (BMR) Requirements 

Low-Rise Developments: 

• In RR-2 Zones, staff propose removing the BMR requirement to permit 6-storey 100% market rental projects;
• In RR-3 zones, staff propose removing the BMR requirement on the east side of the City, and adjusting the depth of affordability on the west side (reporting back on this change in Q2 of 2026); 

Mid- and High-Rise: 

• Staff propose a two-year, time-limited, Rental Development Relief Program for projects with less than 10 Purpose-Built Rental (PBR) units. Staff propose amending the depth of affordability to CMHC citywide average. Tenant Relocation and Protection Policy (TRPP) BMR requirements will remain in place;
• A full DCL waiver is proposed on the residential portion of the building;
• Modest increases to height and density will be considered consistent with the ODP;
• Application intake will open February 1, 2026, with two application streams:
  • Stream 1: Adjustments to affordability requirements only – requiring a new Housing Agreement, approved by Council and registered on title.
  • Stream 2: Adjustments to affordability and form of development – requiring further review, which may include revisions or resubmission of CD-1 applications.
• Projects located on large sites (>8,000 sq. m) or those including below-market rental units as part of a Community Amenity Contribution (CAC) negotiation and not as a policy requirement will not be eligible. 

Standardizing Apartment Regulations and Guidelines 

Staff propose updates to apartment regulations to improve clarity and processing efficiency, enable greater design flexibility, and balance livability considerations. 

Enhanced FSR exclusions for new apartments: 

• Simplifying storage FSR exclusion requirements to 2.3 sq. m per unit to replace the case-by-case requirement; 
• Staff propose removing the maximum limits on these floor area exclusions citywide and modernizing the related guidelines to promote well-designed and usable spaces. 

Unit Mix: 

• Staff propose standardizing a requirement that 35% of units have two or more bedrooms, and 5% (inclusive of that total) have three or more bedrooms, with exemptions for specific housing types such as seniors’ housing and constrained sites. 

Inboard Bedrooms: 

• Proposed changes will continue to require exterior windows for all living rooms and for bedrooms counted toward unit mix requirements (per the section above), while allowing flexibility for inboard rooms otherwise.  

Attainable Home Ownership Pilot Rezoning Policy 

The report outlines a proposed pilot that leverages Provincial administrative capacity and expertise and generally aligns with the program parameters of the Attainable Housing Initiative (AHI) Heather Lands, including buyer eligibility and future resale considerations. Nevertheless, the Province has not yet committed funding for the implementation of this pilot.  

Staff are proposing a pilot approach that would remain open to applications until December 15, 2027. Acknowledging that Provincial partnership has not been secured, the policy contemplates some flexibility to bring forward proposals for Council’s consideration that vary from noted requirements as long as the general policy intent is met.  

Development Cost Levy (DCL) Reduction and Deferral 

The report outlines a proposal to align the DCL deferral mechanism with the Province, allowing developers to defer 75% of the fees until building occupancy or four years, whichever comes first, and to use surety bonds for security instead of letters of credit. 

City staff are proposing a temporary 20% DCL rate reduction to help move projects forward. As part of the 2025 Federal Budget, the Build Communities Strong Fund is expected to provide $12.2 billion over 10 years to support municipalities for housing-enabling infrastructure. To access these funds, the provincial government must agree to cost-match the federal funding, and cities must significantly reduce development charges. With the proposed 20% reduction in DCL rates, the City will be eligible to apply for this federal funding to offset the foregone revenue to help fund housing-enabling infrastructure such as sewer, water, and transportation capital projects. 

Public Art Rezoning Conditions Adjustment 

The report proposes a change to increase the existing 20% discount on Cash-in-Lieu contributions to 40% for eligible in-stream rezoning applications that have not yet been considered at a public hearing as of December 9, 2025, and have been approved in principle by Council following a public hearing before July 31, 2026. 

TDM Program Adjustment 

Staff propose to eliminate the TDM plan requirement for any development site for which development permit applications are submitted after December 10, 2025. 

Permit Improvement Program and Development Viability 

The initiatives outlined below form part of the City’s Permit Improvement Program (PIP): 

• Elimination of Traffic Impact Studies – Removed the requirement for most development applications;
• Simplified Use Changes – Removed the need for development and building permits for simple use changes, cutting processing times by up to 12 weeks;
• Streamlined Utility Connection and Sewer Review Processes – Raised thresholds for sewer and water upgrades, allowing 10% more small projects to be processed within three days;
• Regulatory and Digital Improvements – Expanded use of electronic compliance checking through the eComply pilot and fully digitized business license applications, reducing processing time from 16 weeks to two days;
• Development Permit Condition Review – Reviewed over 1,200 standard conditions, eliminating one-third and simplifying two-thirds to improve predictability and reduce prior-to-issuance review cycles; 

Future and ongoing measures to help development viability include: 

• Villages Planning Program;
• Financing Growth Update (DCLs, ACCs, IZ, DB, CACs);
• Streamlining rental opportunities in C-2 Zones;
• CAC Escalation Clause – This tool would allow for a discounted CAC (up to 20%) if applicants move their projects through key development stages (rezoning enactment, DP, BP) within a specified timeframe;
• Sustainable Large Developments Policies – Staff recommending that the Community Benefits Agreement (CBA) Policy be optional for projects which have not yet been considered at Public Hearing. During the meeting, Council moved that revised community benefit provisions are not incorporated as part of the review of the Rezoning Policy for Sustainable Large Developments and other policies that pertain to large sites;
• Crane Swing and Shoring and Underpinning Agreements. 

More information can be found in the full report by City staff and the Council meeting video. 

August 5, 2025

As mentioned in previous updates, on July 22nd, Council enacted a Bylaw aimed at improving project viability and advancing housing delivery. Key measures include:  

• Deferring DCL Payment  
  • Installment payments as follows:   
  • One-third prior to Full Construction Building Permit (BP) issuance (only if project is processed through staged BPs, otherwise due at initial permit issuance).  
  • One-third due 12 months after BP issuance  
  • One-third due 24 months after BP issuance  
  • All payments made prior to issuance of occupancy permit  
• Lowering Cash CAC Payment at Enactment  
  • The City may, at its discretion, allow for deferral for the portion of cash CACs exceeding $5 million, with interest at Prime + 1% applicable to the deferred payment and payment due by the earlier of 24 months of rezoning enactment or prior to issuance of the first building permit.   
  • The first $10 million of the deferred CAC may be secured, at the City’s discretion, by “pay-on-demand” Surety Bond and the balance over $10 million may be secured by a combination of “pay-on-demand” Surety Bond (up to 50%) and Letter of Credit.  
• Foregoing Annual Inflationary Adjustment to Development Contributions  
• Reducing DCL Rate for Works Yard for Public Bus Transportation  
• Broadening the Use of “Pay-on-Demand” Surety Bonds  
• Floorplate Flexibility 

UDI is supportive of the Bylaw after several sessions to discuss ways to improve project viability and advance housing delivery. More information can be found in the full staff report.