Small-Scale Multi-Unit Housing

B.C’s New SSMUH Legislation

In the fall of 2023, the Province of British Columbia introduced changes to the Local Government Act and Vancouver Charter to require local governments to permit between 2-6 housing units in residential zones that are otherwise restricted to single-family dwellings and duplexes (referred to as Restricted Zones in the legislation). Local governments are required to update their zoning bylaws before June 30, 2024, to comply with this new legislation related to small-scale, multi-unit housing.

What is small-scale multi-unit housing?

Small-scale multi-unit housing (SSMUH) refers to a range of housing unit configurations that can provide more affordable and diverse options than single-family homes. Examples include:

• secondary suites in single-family dwellings,

• detached garden suites (e.g., accessory dwelling units (ADUs) or laneway homes)

• duplexes,

• townhomes and house-plexes

The modest increase in density resulting from these forms of housing is typically compatible in scale and form with existing low-density neighbourhoods. These forms of infill housing can produce significant benefits for neighbourhood vibrancy, inclusiveness, and environmental and economic sustainability.

Why has the Province introduced these changes?

The aim of the SSMUH legislation is to increase housing supply, create more diverse housing choices, and over time, contribute to more affordable housing across BC. The cost of single-family detached homes are out of reach for many people in a growing number of 3 BC communities. However, zoning regulations that exclusively permit single-family detached homes often cover 70-85% of the privately held, residential land base in communities. Even though they are less expensive to rent and buy, multi-unit forms of housing are not permitted in most areas of our communities. The approval processes for multi-family buildings are also often longer, more costly, and more uncertain than for single-family homes.

These conditions make it challenging to build multi-unit housing throughout the province. This historical approach to zoning regulations has limited the diversity of housing supply required to meet the changing needs of people in BC’s communities.

The Province is addressing this by requiring local governments to allow secondary suites or ADUs throughout BC, and in over 80 communities, to also allow multiple units of housing on single-family and duplex lots without the need for the property owner to go through a rezoning process. Similar approaches have been used successfully by cities, states, and countries around the world to create more inclusive, affordable, and resilient communities.

Local governments have a critical role to play in the implementation of these legislative changes, and much to gain from its success. The legislation establishes requirements for the minimum number of units that must be permitted in single-family or duplex zones based on lot size and location. Local governments have the discretion to permit higher densities than the legislative requirements in the zones impacted by the new legislation.

While updating their zoning bylaw(s), local governments are required to consult the Provincial Policy Manual and Site Standards, as well as any technical or policy bulletins published by the Province. Local governments have the flexibility to implement zoning bylaw regulations (e.g., setbacks lot coverage) that reflect their unique circumstances. However, the zoning bylaw updates cannot be designed to limit the use or density of use required by the legislation due to the need for more housing across the province.

To support local governments with the additional work load associated with implementing these changes, the Province has delivered $51 million in new funding to help build capacity. Over time, it is expected that the suite of legislative changes introduced in the fall of 2023 related to local government land-use planning will help reduce administrative work loads for local governments that are associated with processing development applications.