Project Financing

This Small Housing Guidance Paper examines the viability of redeveloping houses in single family neighbourhoods with more homes on the same property, presenting recommendations that will assist various actors involved in setting financial and cost recovery policies as it relates to new gentle density development.

Key policy considerations explored include:

Enabling Tenure Options (Rental & Ownership)

Allowing individual ownership, or strata-titling, for each home on a lot will encourage more new units to
be constructed versus requiring that a property have a single owner (i.e. the owner rents out the additional units, or all residents share a single mortgage).

Leveling the cost playing field and reducing risk

Constructing multi-unit buildings is more complex and costly than single family homes; by offering standardized designs and simplifying approval processes it is possible to reduce the uncertainty and costs involved.

Building in affordability

Given the small number of units involved in these projects, it is administratively simpler and more financially viable to take any affordability requirements or financial contribution (if required) and combine them for affordable housing on a larger site.

For the comprehensive suite of Small Housing Guidance Papers, check them out in the Toolbox Resource Library. Simply search for “Guidance Paper”.

This Metro Vancouver study investigates the cost of providing infrastructure and services to neighbourhoods with varying residential densities, with the goal of informing municipal planning and regional growth policies for Metro Vancouver.

Key insights:

• The study emphasizes a complex relationship between residential densities and infrastructure costs influenced by factors like infrastructure age, existing capacity, and the physical landscape of the serviced area.
• Evidence presented suggests that infrastructure and servicing costs per capita and per unit are significantly higher for houses compared to apartment developments.
• Increasing density is identified as a potential contributor to lowering housing development and municipal operating costs over time.
• The study includes a literature review on municipal infrastructure and associated costs.
• Cost calculations are provided for various factors, including development cost charges, municipal operating costs, property taxes/utility fees, and infrastructure servicing, categorized by housing type.

In the fall of 2023, the Province of British Columbia introduced changes to the Local Government Act and Vancouver Charter (VC) to allow more small-scale, multi-unit housing in land use zones that are otherwise restricted to single-family dwellings or duplexes.

This policy manual aims to support local governments in amending their local zoning bylaws and associated legislation to allow for small-scale multi-unit housing (SSMUH) in traditionally single-family zoned areas as per recent requirements mandated by the Province of BC.

Key insights:

The manual provides:

• An overview of the new SSMUH legislative requirements and implementation timelines for municipalities to come into compliance
• Best practices for updating zoning bylaws, guidance on related policies that may need to be updated (including housing tenure options, estimating potential increases in density, and planning for increased demand on municipal infrastructure and services)
• Sample site standards that local governments can use to update their zoning bylaws to allow for financially viable ADU and 3-6 unit housing developments.

This research paper examines Detached Accessory Dwelling Units (DADUs) from an affordability lens, addressing both affordability for renters and whether or not DADUs are affordable to build.

Cities across North America are facing unprecedented challenges related to housing affordability, climate resilience and economic sustainability. In many cities, infill housing policies are being adopted in response to these issues. This research focuses on one particular type of infill housing – Detached Accessory Dwelling Units (DADUs). DADUs, also known as laneway homes, garden suites, or carriage houses, are independent rental units typically built in the backyards of single-detached homes.

Key insights:

• DADUs offer opportunities for downsizing, age in community, multigenerational living, additional rental income, and adaptable housing across the lifespan, often considered as a form of affordable housing.
• A policy comparison across nine municipalities in Canada and the United States identifies DADU best practices and common characteristics among municipalities with high DADU uptake.
• A secondary analysis of Edmonton’s DADU permitting data explores the spatial distribution of DADUs concerning affordability.
• A survey of DADU owners and prospective builders in Edmonton uncovers barriers to development, excluding tenants from the survey.
• Policy recommendations from the comparison include reducing regulations for flexibility in DADU size, height, and orientation. This involves eliminating parking minimums, owner occupancy requirements, location restrictions, and contextual regulations tying DADU dimensions to the primary dwelling. Such measures aim to foster a successful DADU market.

Research paper authored by Ashley Salvador, University of Waterloo (November 11, 2020).

This CHMC study investigates successful examples of regulatory, planning, and financial initiatives at the municipal level that have helped to overcome obstacles to infill development (including contaminated sites grants, accessory apartment development, and development fee exemption programs).

Each initiative highlights local stakeholders’ responses, the impact of the program on local development, program cost (including staff time allocated), and long-term program evaluation.

The study identifies common success factors between initiatives which include linking intensification to other policy goals (e.g., efficient use of public infrastructure funds), ensuring there is robust public engagement, identifying a policy champion, creating a supportive municipal policy environment, and monitoring program outcomes.

This report has been prepared by Ray Tomalty, Co-operative Research and Policy Services.

The BC Government’s dedicated web page aimed at providing information to prospective homeowners interested in building and managing a secondary suite or ADU property.

Key insights:

• This page has information for homeowners interested in building and managing a secondary suite or ADU, including a guide and information about the new BC Housing secondary suite incentive program (accepting applications April 2024).

• It provides FAQs & responses on secondary suite and an accessory dwelling unit (ADU) are
• Articulates some of their benefits to homeowners (e.g., to provide multi-generational living opportunities and provide additional household income).

Further to this, the page links to Home Suite Home, a guide created by the province which details:

• Local zoning and building code requirements
• Guides homeowners through how to obtain a building permit, notes the rights and responsibilities of becoming a landlord, and provides information on where to find and hire professionals to develop a secondary suite.

Additionally, information is provided on the new Secondary Suite Incentive Program, which will give conditional financing to eligible homeowners to construct affordable attached or detached rental units.