BC (PROVINCE)

The British Columbia government is launching a three-year pilot of the Secondary Suite Incentive Program, which offers forgivable loans of up to 50% of renovation costs, up to $40,000, for homeowners to add a secondary suite or accessory dwelling unit on their property. The program aims to create thousands of affordable rental units across the province.

• The program will be available starting May 2, 2024, to homeowners in most B.C. municipalities and regional districts.
• Eligible homeowners must have a combined gross annual income of less than $209,420 and a property value below the homeowner grant threshold ($2.15 million in 2024).
• Approximately 1,000 homeowners per year will receive the forgivable loans, adding 3,000 new rental units at below-market rates.
• The province has also passed legislation to allow secondary suites and accessory dwelling units in every community in B.C.

• Funding: Budget 2023 allocated an additional $91 million over three years to support the Secondary Suite Incentive Program pilot.
• Eligibility: The program will be available in most incorporated municipalities and 15 regional districts, with the potential for further expansion in the future.

• Premier David Eby: "This new incentive program makes it possible for homeowners to add a rental suite to their home, creating thousands of affordable rentals."
• Housing Minister Ravi Kahlon: "This program will add thousands of long-term, below-market rental homes to urban and rural communities across B.C."

The British Columbia government has identified 20 additional priority municipalities to receive housing targets for the next five years, as part of its efforts to address the housing crisis in the province. These communities are located in high-growth, high-need regions and will work with the province to meet their targets, which will be announced this summer.

• Central Saanich
• Chilliwack
• Colwood
• Esquimalt
• Kelowna
• City of Langley
• Maple Ridge
• Mission
• Nanaimo
• New Westminster
• North Cowichan
• North Saanich
• City of North Vancouver
• Port Coquitlam
• Prince George
• Sidney
• Surrey
• View Royal
• West Kelowna
• White Rock

• Historic $1-billion Growing Communities Fund: To help 188 local governments address population growth
• $10 million for a second intake of the Local Government Development Approvals Program: To support municipalities
• $51 million in grant-based funding: To support activities or projects, such as updating existing zoning bylaws, housing needs reports, and official community plans

• The Housing Supply Act was introduced in 2023 to establish housing targets for the first 10 priority municipalities
• Municipalities are taking action to approve housing quicker through the implementation of provincial legislation, such as allowing small-scale multi-unit housing, designated Transit-Oriented Areas, updated Official Community Plans, and streamlined local-development approval processes

The British Columbia government is introducing new regulations to improve the maintenance and repair of common property in strata corporations. The key changes include requiring depreciation reports every five years, instead of the previous three-year cycle, and mandating that these reports be obtained from qualified professionals.

• Existing strata corporations with five or more strata lots must obtain depreciation reports on a five-year cycle, effective July 1, 2024.
• All strata corporations must obtain depreciation reports from qualified professionals, including engineers, certified reserve planners, architects, appraisers, and quantity surveyors, effective July 1, 2025.
• Owner-developers of new strata corporations with five or more strata lots will be required to contribute a minimum of $5,000, plus $200 per strata lot, up to a maximum of $30,000, towards the cost of the first depreciation report, effective July 1, 2027.
• Strata corporations with four or fewer lots will continue to be exempt from the depreciation report requirement.

• Strata corporations formed between July 1, 2024, and June 30, 2027: Must obtain depreciation reports within two years of the first annual general meeting and every five years thereafter.
• Strata corporations formed on or after July 1, 2027: Must obtain depreciation reports within 18 months of the first annual general meeting and every five years thereafter.
• Strata corporations without depreciation reports or with reports received prior to December 31, 2020: Must obtain reports by July 1, 2026, if located in Metro Vancouver, Fraser Valley, or the Capital Regional District (excluding the Gulf Islands and other islands), or by July 1, 2027, if located in other areas of the province.

The British Columbia government is introducing new measures to help local governments build more affordable and livable communities, including tools to accelerate development approvals, require affordable housing in new developments, and protect tenants facing displacement due to redevelopment.

• Local governments will be able to require affordable housing units in new developments.
• Municipalities must conduct a financial feasibility analysis to determine the appropriate density needed to offset the costs of providing affordable housing.
• The Province will monitor the implementation of inclusionary zoning and have regulatory authority to ensure it does not deter needed housing development.

• The proposed changes aim to provide more consistency and transparency when developers and local governments use density bonus in exchange for amenities or affordable housing.

• Local governments will have an increased range of site-specific works and services they can require in new developments, such as wider sidewalks, protected bike lanes, and end-of-trip facilities.
• These measures are intended to support sustainable transportation and climate resilience.

• Municipalities will be able to require developers to provide support for tenants facing displacement due to redevelopment, including financial assistance, help finding a new home, and opportunities for right of first refusal on units in the new building.
• The TPB is a result of consultation with cities and stakeholders, and was recommended by the Province's 2018 Rental Housing Task Force report.

These legislative changes are part of the Province's Homes for People plan and are expected to be published in guidance for local governments in fall 2024.

The British Columbia government is proposing amendments to the Residential Tenancy Act and the Manufactured Home Park Tenancy Act to better protect renters and landlords. The key changes include:

• No rent increases above the annual allowable amount will be permitted if a tenant adds a child under 19 to their household, even if the tenancy agreement states rent will increase with new occupants.

• Landlords will be required to use a web portal to generate a notice to evict a tenant for personal use, which will help educate landlords about the required conditions and risks of bad-faith evictions.
• The new process will allow for post-eviction compliance audits and provide information to the ministry about the frequency of these types of evictions.

• Since November 2022, wait times at the Residential Tenancy Branch have been reduced by almost 54%, with the dispute stream for unpaid rent and/or utilities decreasing by more than 52% from 10.5 weeks in February 2023 to less than 5 weeks in February 2024.
• The new Money Judgment Enforcement Act, coming into force in 2025, will make it easier and less costly for people to get the money owed to them from Residential Tenancy Branch decisions.

• Increased Notice Period: The amount of notice a landlord must give a tenant when ending a tenancy for personal occupancy will be increased.
• Longer Occupancy Requirement: The amount of time a landlord must occupy a rental unit after ending a tenancy for personal occupancy will be increased from 6 months to 12 months.
• Longer Dispute Period: The amount of time a tenant has to dispute a notice to end tenancy will be increased from 15 days to 30 days.
• Eviction Restrictions: Evictions for personal use will be prohibited in purpose-built rental buildings with five or more units, and evictions for the conversion of rental units to specific non-residential uses will also be prohibited.

The British Columbia government is taking action to ensure that new short-term rental rules will continue to provide more long-term homes for people, while helping certain existing strata hotels and motels continue providing overnight accommodation.

Upcoming regulations are intended to provide criteria for exemptions for strata hotels and motels from the Province's principal-residence requirement for short-term rentals, which is set to go into effect in many B.C. communities on May 1, 2024.

Exemptions for Strata Hotels and Motels

• Option 1: Before December 8, 2023, the strata hotel or motel was providing accommodation in a manner similar to a hotel or motel and on that date had and continues to have: a staffed front desk on site, one or more employees or contractors that provide housekeeping services for overnight accommodations, and a platform providing platform services available exclusively for the use of owners offering short-term rentals at the property.

• Option 2: Before December 8, 2023, the strata hotel or motel was providing accommodation in a manner similar to a hotel or motel, and more than one strata lot on the property is not able to be used as a principal residence by anyone due to a restriction under zoning, a rental management agreement, or a restrictive covenant.

• The exemption is expected to apply to all units on the property, providing consistent treatment.

• Newly constructed strata hotels and motels, first capable of being occupied on or after December 8, 2023, must have all three services listed in Option 1, in addition to one of the legal-use restrictions described in Option 2, to be exempt.

Homes for People Action Plan

• Action to turn more short-term rentals into long-term homes is part of the Province's Homes for People action plan, announced in spring 2023.

• The plan builds on historic action to deliver housing since 2017 and sets out further actions to deliver the homes people need faster, while creating more vibrant communities throughout B.C.

The British Columbia government is partnering with local non-profit housing providers to deliver 867 new affordable rental homes on Vancouver Island. The projects will cater to a diverse range of residents, including seniors, families, and individuals with disabilities.

• The new homes are part of the Building BC: Community Housing Fund, a $3.3-billion investment to build over 20,000 affordable rental units by 2031-32.
• 70% of the units will have rent geared to income, with 20% reserved for those with very low incomes, such as those receiving assistance.
• The remaining 30% of units will be available at or below market rates for moderate-income households.

• Central Saanich, 1183 Verdier Ave.: 110 homes for families and seniors, in partnership with Capital Region Housing Corporation
• Nanaimo, 1125 Seafield Cres.: 62 homes for seniors, in partnership with Woodgrove Senior Citizens Housing Society
• Port Alberni, 2866 4th Ave.: 40 homes for families and seniors, in partnership with M'akola Housing Society
• Saanich, 3781 Cedar Hill Rd.: 95 homes for intergenerational housing, in partnership with Luther Court Society
• Saanich, 3950 Cedar Hill Rd.: 200 homes for families and seniors, in partnership with Capital Region Housing Corporation
• Victoria, 11 Chown Pl.: 77 homes for families and seniors, in partnership with the Gorge View Society
• Greater Victoria (address to be announced): 186 homes for families and seniors, in partnership with Capital Region Housing Corporation
• Greater Victoria (address to be announced): 97 homes for families and seniors, in partnership with Capital Region Housing Corporation

The Province is working to deliver affordable housing and prepare for future funding calls, with the next expected in late 2024 or early 2025.

Construction has begun on the Pathways Clubhouse building in Richmond, providing affordable housing options for families and individuals.

• Partnership Project: BC Housing, City of Richmond, and Pathways Clubhouse Society collaborating on 80-unit building at 5491 No. 2 Rd.
• Unit Breakdown: 24 studios, 36 one-bedroom units, 15 two-bedroom units, and 5 three-bedroom units, with 5% fully accessible for people with disabilities.
• Completion Date: Construction expected to finish in late 2025.
• Funding Details: BC Housing providing $9 million, City of Richmond contributing $2.2 million plus land, with 20% of units rented at shelter rates and 50% with rent geared to income.
• Community Impact: Conveniently located near amenities, supporting various income levels and demographics in Richmond.

The Province has updated the Provincial Policy Manual: Transit-Oriented Areas (TOA manual) to support local governments in providing housing and amenities near transit hubs.

• TOA Manual Update: The TOA manual was released on Dec. 7, 2023, to guide local governments in implementing the new Housing Statutes (Transit-Oriented Areas) Amendment Act, 2023, S.B.C. 2023, c.48 legislation, also known as Bill 47.
• Density Bonus Tool: The TOA manual now allows local governments to use existing base densities established in their zoning bylaws, even if below minimum allowable densities, when using the density bonus tool to secure affordable housing and public amenities in TOAs.
• Transition Plan: By mid-2025, local governments will shift to using new proactive planning tools, such as amenity cost charges, to secure affordable housing and community amenities through TOA development.

The Province of British Columbia is introducing a home-flipping tax as part of Budget 2024 measures to increase housing supply and affordability.

• The home-flipping tax will apply to homes sold within two years, with a tax rate of 20% in the first year and declining to zero over the next 365 days.

• Starting April 1, 2024, the First Time Home Buyers’ Program will be available for homes valued up to $835,000, with partial exemptions up to $860,000.

• A Newly Built Home Exemption will waive property transfer tax on new homes up to $1.1 million to encourage new home building.

• Rental home construction is being encouraged through enhancements to the exemption for purpose-built rentals, with purchases of qualifying rentals exempt from property transfer tax between 2025 and 2030.