Given current zoning bylaws, single-family
neighbourhoods often occupy 70 per cent of the land area, while housing less
than 20 per cent of the population.
In Vancouver, these single-family
neighbourhoods have been transforming over the past 20 years. While houses have
often included basement suites, it was not until 2004 that the city amended its
bylaws to legalize them. Other municipalities soon followed.
In 2009, Vancouver again amended its
single-family zoning bylaws to allow laneway homes to be built on many lots.
Since then, it is estimated that approximately 5,400 have been built. Again,
other municipalities have followed Vancouver’s lead.
Consequently, it has been possible to build
three dwellings on a single-family lot: the main house, a basement suite, and a
laneway house. However, basement suites and laneway houses could not be sold
separately from the main house. They had to be rentals, although lawyers and
financial institutions discovered a way to allow some laneway houses to be sold
through Tenancy in Common agreements.
All this is about to change. In September,
Vancouver City Council approved new zoning bylaw changes to allow ‘multiplexes’
on single-family lots. It also simplified regulations for all RS, or
single-family zones.
A multiplex is a single residential structure
comprising multiple units. Depending on the lot size, up to six dwellings can
be built on a single lot. If all the homes are rental, up to eight dwellings
will be permitted.
Under the previous zoning, a lot with a
principal dwelling, basement suite and laneway house could not exceed a 0.86
FSR. In other words, on a 5,000-square-foot lot, the area of the three
dwellings could not exceed 4,300 square feet. Under the new multiplex zoning,
the FSR increases to 1.0. Therefore, the total area of the dwellings can
increase to 5,000 square feet.
The maximum allowable height remains at 36
feet. However, previously, houses could not be more than 2.5 storeys, with the
top floor smaller than the floor below. Now three-storey buildings are
permitted.
Under Vancouver’s new multiplex zoning, both
ownership and rental housing may be developed. In some instances, all the
dwellings could be strata-titled and sold. Alternatively, one or more units
could remain affordable ownership or rental. In lieu of creating an affordable
unit, the builder can make a financial contribution to the city. The amount of
this contribution will depend on the size of the lot and where it is located in
the city.
More specifically, for the purposes of
calculating the contribution, the city is being divided into three sub-areas:
east side, central, and west side. For typical 33-foot lots, the builder will
pay $3 for every square foot above a 0.7 floor space ratio, up to 1.0. However,
on larger lots, the payment will range from $70 to $140 per additional square
foot depending on the location. Other rates will apply to mid-size lots in each
sub-area.
One significant change relates to parking.
Previously, the city required a minimum of one space for a single-family
dwelling, regardless of whether there was a laneway house and basement suite.
Under the new multiplex zoning, there is no off-street parking requirement.
None whatsoever. In practice, I expect builders will want to provide some
parking, especially for more expensive homes.
This brings me to a key question: How much
will these new homes cost? In a staff presentation to Vancouver City Council,
it was suggested that a new house on a standard east side lot might sell for
$2.8 million; a duplex might sell for $1.5 million; and a fourplex unit might
sell for $1.1 million.
If six homes were built and sold, I would
estimate that the average price might come down to $800,000.
In terms of price per square foot, estimates
range from $1,100 to $1,450 per square foot, depending on location. The average
sale price could be in the order of $1,200 per square foot.
While this is still expensive, it is
comparable to a similarly sized suite in a larger apartment building, and many
will prefer having their own front door at street level.
While Vancouver’s multiplex zoning is
significant, it is not as significant as the provincial government’s recent
Small Scale Multi-Unit Housing announcement.
This proposed legislation will permit one
secondary suite or one laneway home on every lot in smaller communities
throughout B.C. In municipalities of more than 5,000 people, new zoning
regulations will allow three to four units on lots currently zoned for
single-family or duplex use, depending on lot size, and six units on larger
lots close to transit stops with frequent service.
Michael Geller FCIP, RPP, MLAI, Ret. Architect
AIBC is an urban planner, real estate consultant and property developer with
five decades experience in the public, private and institutional sectors. He
serves on the Adjunct Faculty of SFU’s Centre for Sustainable Development and
School of Resource and Environmental Management. His blog can be found at gellersworldtravel.blogspot.ca.
