On December 2, Josh White, General Manager of Planning, Urban Design and Sustainability at the City of Vancouver, submitted a 50-page report that will be presented to Council on December 10 outlining initiatives to support development viability and unlock new housing supply.
With the development sector remaining on hold and rising concerns that this current construction stop-gap will result in future supply issues in three to five years, City staff have brought forward proactive actions to help restore feasibility during this housing delivery crisis.
Key initiatives include:
- A temporary 20% reduction to city-wide, utilities and area-specific Development Cost Levies (DCLs) to support housing delivery and construction until the Financing Growth Update is brought to Council for approval in Q2 2026.
- Revisions to the DCL Deferral Program, extending payment timelines to improve project cash flow while managing capital plan impacts through interim financing.
- Policy and process changes to improve project feasibility, including updates to the Public Art Policy and Procedures for Rezoned Developments, streamlined sewer capacity reviews, flexible parking and groundwater management standards, and simplified apartment design regulations to improve design flexibility and enhanced FSR.
- Advancement of rental, below-market, and attainable homeownership initiatives, aligning housing delivery with both the City’s Housing Vancouver targets and the Provincial Housing Targets Order to improve affordability outcomes while sustaining the construction pipeline.
- Updates to the Parking By-law to remove Transportation Demand Management (TDM) requirements, reducing costs by up to $4,300 per dwelling unit and shortening application reviews.
- Implementation of previously approved measures under the Permit Improvement Program (PIP), including streamlined reviews for low-complexity applications and consistent conditioning for new district schedules (R3, R4, R5).
- Ongoing systemic and process improvements, including coordinated development review reforms, enhanced data tracking, Community Benefits Agreements provisions, and integration of the forthcoming Amenity Cost Charge (ACC) framework to modernize the City’s growth funding system.
DCL Reduction
The City is proposing a temporary 20% reduction to “city-wide, utilities and area-specific development cost levies (DCLs)” starting upon Council approval and remaining in place until the City recalibrates its development contribution framework through the upcoming Financing Growth Update in Q2 2026. More than just deferring fees, this recommendation lowers overall costs and could positively impact the ability for a project to proceed, even if only a temporary step.
DCL Deferral Aligning with Province
Beginning on February 1, 2026, the City is aligning with the province’s July announcement regarding DCC and ACC regulations where 25% of the DCCs on applicable projects are paid before a building permit is issued, with the remaining 75% deferred for four years or until occupancy, and permitting the use of surety bonds instead of letters of credit. The report notes the City acknowledges there is a one-time impact on funding for infrastructure and will manage the impact through interim financing.
Clarifying and Standardizing Apartment Regulations and Guidelines
Alongside financial relief, the City proposes wide-ranging process and regulatory improvements that begin implementation in 2026. These include simplified design standards and enhanced FSR exclusions for new apartments, including simplified storage requirements, balconies and amenity spaces, and more flexibility for inboard rooms.
Public Art Rezoning Conditions Adjustment
The change would 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 prior to July 31, 2026. This reduces average public art costs by $80,000 – $200,000 per development depending on project size, which is a significant cost-reduction option for qualifying developments.
Removal of Transportation Demand Management (TDM) requirements
By eliminating the TDM plan requirement for any development site for which development permit applications are submitted after December 10, 2025, the change will reduce project costs by up to $4,300 per dwelling unit or $31 per sq. m of non-residential space, while modestly shortening application review times.
Proactive is Needed
It is worthwhile for members to review the report, as there is a lot to unpack, but the bottom line is that the proposed initiatives are proactive and necessary. Without intervention, Vancouver knows the real risks are losing future market homes, rental stock, construction jobs, and essential market diversity. The report acknowledges this directly, noting that the slowdown “poses significant risks to future housing availability and construction employment.” The City’s approach shows a commitment to removing barriers to build industry confidence, encourages builders to reassess paused projects, and signals a clear intent to keep the pipeline moving.
Ensuring Gains are not Diminished by Reduced Services and Increased Fees Elsewhere
One concern I flagged in a CTV interview on Friday is the impact on permit applications and processing from Council’s recent approval for a 0% property tax increase. The “Zero Means Zero” approach will create additional pressure on City departments at a time when staffing support for permitting and approvals is critical. Any reduction in service capacity risks undermining the temporary cost reductions and delaying process improvements intended to accelerate reviews. We also want to ensure the cost reductions do not result in increased fees on other line items and erase the proposed savings.
Another challenge sits outside City Hall. Every level of government influences housing viability. When Metro Vancouver increases fees or provincial regulations shift, the gains from municipal reforms diminish. A coordinated approach is needed so these steps are not overshadowed by rising costs elsewhere.
HAVAN to send letter to Council
Although there is always more to do, it is important to recognize when municipalities like Vancouver take bold steps to bring housing construction back online. HAVAN is sending a letter to Council to encourage their approval of these these industry-supportive initiatives, as well as to bring to their attention possible negative impacts from the zero increase in property taxes, as well as the need to ensure other fees do not increase. If you have any comments to share, email me or Donovan Arsenault (donovan@havan.ca).
SAVE THE DATE: LEGENDS RETURNS JANUARY 29, 2026
On Thursday, January 29, 2026, HAVAN’s annual Legends of Housing returns to the Delta Hotels Burnaby Conference Centre. Event details will be shared this week.
HAVAN continues to work with CHBA BC and CHBA to advocate for all levels of government to work together to address the challenges of the housing industry including zoning restrictions, density limits, and NIMBYism.
Looking to stay up-to-date on Metro Vancouver’s residential housing industry? Sign up for Wendy’s weekly Monday Briefing and other HAVAN emails here.
QUICK BITES …
- Opinion: New homebuilders are the boiling frogs of the housing crisis | BIV
- Should Canadian taxpayers finance more subsidized housing? | Vancouver Sun
- B.C. companies embrace ‘circular’ construction with $1M federal backing | BIV
- Business leaders to Premier David Eby: Fix B.C.’s economic investment climate now | DH Urbanized
