Density Bonus and What It Means For Your Project
- VB
- May 9, 2024
- 2 min read
What Is Density Bonus?
Density bonus is a powerful tool that local governments in BC can wield to strike a balance between urban growth and community well-being. Here’s the lowdown:
Definition: Density bonus allows developers to build to higher density (more units or floor space 🙌) in exchange for providing specific benefits to the community.
How Does It Work?
Voluntary Exchange: The system operates on a voluntary basis. When a developer embarks on a project, they have choices:
Base Density: Developers can proceed with the standard density allowed by zoning regulations without any extra requirements.
Bonus Density: Â Developers can opt for higher density more units or floor space) by providing something back to the community or local municipality.
Contributions: Developers can contribute in various ways:
Affordable Housing Units: A specific number of affordable housing units.
Amenities: Think energy-efficient building features, green spaces, or community facilities.
Funding: Cash that the local government can use for amenities or special needs housing.
A few examples from BC Communities:
City of New Westminster:
Developed a density bonus zoning system where 30% of revenues go toward affordable housing.
City of Burnaby:
Introduced a Community Benefit Bonus Policy.
Developers gain extra density by providing amenities that meet social, cultural, recreational, or environmental needs.
City of North Vancouver
Since 2019, new market rental projects seeking a density bonus must provide 10% of units as Mid-Market Rental units at 10% below average rents, as determined by CMHC, in perpetuity.
City of Kelowna
Uses a density bonus zoning approach to incentivize developers to build affordable housing units.
Why It Matters:
Flexibility: Bonus density offers flexibility in project design and development
Affordability: By encouraging affordable housing, density bonuses address the housing crisis.
Incentives & Community Enhancement: Developer gain extra density while contributing to community well-being
Sustainable Growth: Efficient land use and better integrated communities.
Project Feasibility: None of the positives above can materialize unless a project is financially viable. Density bonusing can sometimes make the difference between whether or not a project will proceed!
Conclusion:
Density bonuses are like a dance between developers and communities. They have huge potential to achieve synergies that allow for the creation of much needed housing while effecting positive community well-being and outcomes. Density bonuses play a crucial role in shaping our communities, influencing development, and enhancing housing affordability.
Feel free to reach out to us at hello@driftpm.ca if you would like to chat more about your project and the current density bonus incentives that may be available to you!
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