Vancouver City Council Approves Measures to Support Development Viability

Vancouver City Council (“Council”) has introduced a comprehensive package of policy changes aimed at tackling housing affordability and improving development viability. These measures reflect the City of Vancouver’s broader strategy to balance housing supply with affordability while responding to market pressures and construction cost realities.

At its meeting on December 10, 2025, Council considered and advanced several recommendations designed to ease financial constraints on developers, streamline regulatory processes, and incentivize both rental and ownership housing options. Below is a summary of the nine recommendations approved at this meeting.

Rental Development Relief Program

Council endorsed a two-year initiative to bolster the viability of mid- and high-rise rental projects at risk of stalling. Running from February 1, 2026 to December 15, 2027, the Rental Development Relief Program introduces several relaxations for eligible projects, including:

• Adjusted Rent Requirements: Below-market rents may now be set at the Canadian Mortgage and Housing Corporation’s city-wide average rents, rather than requiring a discount below city-wide average rents.
• Development Cost Levy Waivers: Full waiver of the City-wide Development Cost Levy on the residential portion for projects meeting affordability criteria.
• Height and Density Flexibility: Modest increases will be considered to improve project feasibility.

Eligibility criteria include compliance with community plans requiring below-market rentals, mid/high-rise scale (nine storeys or higher), rezoning to CD-1, and site-specific limitations (e.g., fewer than 10 existing rental units, site size under 8,000 m²). Applications open February 1, 2026, with Council approvals required by December 15, 2027.

By-law Amendments to Align with Relief Program

Council has amended the Vancouver Development Cost Levy By-law and Area Specific Development Cost Levy By-law effective January 1, 2026. These changes will adjust maximum starting rents for affordable rental housing to align with the Rental Development Relief Program, though final rents remain subject to negotiated housing agreements.

Standardizing Apartment Regulations

Council also supported updates to the Zoning and Development By-law to simplify apartment design requirements and improve review processes, although the by-law amendments have not yet been drafted. Proposed changes include:

• Standardized storage requirements (2.3 m² per unit).
• Removal of maximum limits on floor area exclusions for balconies and amenity spaces.
• Clear unit mix standards (35% two-bedroom, 5% three-bedroom).
• Update rules for natural light requirements and inboard rooms.

Attainable Home Ownership Pilot

A new Attainable Home Ownership (“AHO”) Pilot Rezoning Policy will allow select sites that are usually reserved for secured purpose-built rental housing to accommodate ownership units for middle-income buyers.

Only sites located in off arterial locations within low density transitions areas, as defined in the Secured Rental Policy, will be considered. AHO proposals are expected to follow the same four storey form of development outlined in the RR-2A District Schedule and associated guidelines.

Proposals are expected to target at least 20% of the total floor area for AHO units, maintaining the same unit mix as market strata units.

The pilot program will accept applications until December 15, 2027.

20% Reduction of Development Cost Levies

To ease financial pressure on developers, Council has approved a 20% discount on development cost levies (“DCLs”). The discount automatically applies to all projects subject to DCLs by any or all of the following: the Vancouver Development Cost Levy By-law, the Vancouver Utilities Development Cost Levy By-law and the Area Specific Development Cost Levy By-law.

This measure took effect on December 10, 2025, and will remain in effect until the City of Vancouver recalibrates its development contribution framework through the upcoming Financing Growth Update in Q2 2026.

Deferred Development Cost Levy Payments

Council also amended the Vancouver Development Cost Levy By-law, the Vancouver Utilities Development Cost Levy By-law and the Area Specific Development Cost Levy By-law to authorize applicants to pay their DCLs in two installments for development projects with DCLs valued over $500,000, effective January 1, 2026.

The updated DCL deferral option allows a developer to pay one-quarter of the total levy when issued an initial building permit and pay the remaining three-quarters of the total levy four years after the date of initial building permit issuance or 15 days after all required occupancy permits have been issued, whichever occurs earlier.

Transportation Demand Management Requirements

Council approved amendments to the Parking By-law to eliminate Transportation Demand Management plan requirements for development permit applications submitted after December 10, 2025. This change affects projects in the Downtown and Broadway Plan Area or Transit-Oriented Areas with 12 or more dwelling units or 500 m² of non-residential floor area, as well as large sites exceeding 8,000 m² or 45,000 m² of new development floor area.

Public Art Discount

Council amended the Public Art Policy and Procedures for Rezoned Developments to increase discounts for Option B: Cash-in-Lieu contributions. The discount will rise from 20% to 40% for eligible in-stream rezoning applications not yet considered at a public hearing as of December 9, 2025, provided they receive Council approval in principle before July 31, 2026.

Optional Community Benefits Agreement

Council approved making the Community Benefits Agreement (“CBA”) Policy optional for projects not yet considered at public hearing as of December 10, 2025, and for the following developments, which have been approved in principle at a public hearing but the rezoning by-law has not yet been enacted and are subject to a CBA rezoning condition:

• 949 W 41st Ave & 5469-5507 Willow Street
• 396 SW Marine Drive
• 1780 East Broadway
• 4545 West 10th Avenue
• 2108 Cassiar Street
• 282 West 49th Avenue
• 450-496 Prior Street, 550 Malkin Avenue & 1002 Station Street

These measures reflect Council’s commitment to addressing housing affordability and supporting development viability amid challenging market conditions. McCarthy Tétrault’s Real Property & Planning Group will continue to track developments and advise clients on how to engage with these amendments and leverage them for housing projects in the City of Vancouver. If you have any questions or would like to discuss the implications of these changes, please do not hesitate to contact one of the members of our Real Property & Planning Group.