In the ever-evolving landscape of urban development, B.C. has taken a bold step towards addressing the housing shortage and affordability crisis through its progressive multiplex zoning initiative. This new legislation, introduced in the fall of 2023, has the potential for homeowners to unlock equity amassed in land value with new development opportunities.
Commonly referred to as the “missing middle” housing strategy, this plan seeks to bridge the gap between single-family homes and large-scale developments, offering a range of housing options to meet the needs of a growing and diverse population.
Rezoning not required
A cornerstone of the new multiplex zoning is to increase density by permitting up to six units on a single-family property without the need for rezoning. This move is a paradigm shift for homeowners from traditional zoning regulations that historically have faced years of delays, as review of a project was on a case-by-case basis, often heavily scrutinized by those opposed to change. The new legislation is poised to revolutionize our urban fabric, saving homeowners time and money in the process, too.
While the more common sight may be laneways, duplexes, triplexes, and fourplexes, this new legislation will also allow for six- and eight-unit developments in Vancouver, with specific criteria and considerations pertaining to rentals and proximity to transit centres.
Speaking with HAVAN member Bobby Purba of BDC Homes, Purba notes, “We are still in the early stages of this newly proposed legislation, with details still to be hammered out.”
Navigating criteria
“Homeowners will need to navigate through a set of criteria, including the presence of an existing home or laneway on the property, proximity to transit, and B.C. Hydro’s ability to provide power to sustain increased density,” says Purba. These considerations are crucial to ensure the multiplex zoning initiative aligns with the broader goals of sustainability, transit-oriented development, and community integration. It will also help to determine what is possible on your specific lot, and the financial requirements to execute optimal plans for your property.
Financial institutions and the multiplex model
One significant unknown for homeowners is how financial institutions will respond to lending programs structured for these multiplex projects. BDC Home’s hopeful expectation is that “Lenders will adopt a holistic approach, considering factors such as potential rental income, sale revenues, and construction timelines when assessing loan applications,” says Purba. “This cooperative stance is not dissimilar to the practices commonly observed in the commercial development space such as townhomes and mid-rise projects.”
Additional considerations
Despite the groundbreaking strides, Purba says, “Matters such as building height, width, engineering services (water, sewage, electrical upgrades), and parking requirements are on the agenda for further discussion and refinement, all of which will impact the cost per square footage to develop and build on one’s property.”
Construction detail
Drawing on his multi-family development experience, Purba says, “These multiplex builds will also demand heightened attention to construction detail. Factors such as firestopping, unit separation, air quality, and energy efficiency will be crucial to ensure these developments meet the high standards of care expected in our dynamic real estate landscape and the B.C. Building Code.” Purba emphasized the need to work with qualified and professional builders, designers, and developers.
If you have a keen interest in harnessing the potential equity in your property with multiplex zoning, the recommendation is clear – engage with lenders, realtors, real estate developers, and builders as soon as possible to determine the potential of your property. Early collaboration can streamline the process, mitigate challenges, and contribute to a positive and successful experience to help you unlock the equity in your home, and contribute to the housing solution.
