Provincial Housing Minister Introduces Legislation to Streamline Homebuilding Process

Provincial Housing Minister Ravi Kahlon has proposed new legislation aimed at reducing construction times for homebuilding projects and simplifying the process for accessing funds for critical services and infrastructure. If passed, the legislation would require local governments to adopt an upfront planning framework, pre-zoning land to meet housing needs and reducing the need for rezoning. Currently, many municipalities use the rezoning process to negotiate with homebuilders for funding amenities.

Kahlon explained at a press conference that long negotiations or funding processes can slow down construction projects, add unexpected costs, and in some cases, render projects unviable. The proposed legislation would also introduce a new amenity cost charge tool to provide builders and municipalities with a transparent understanding of the costs associated with a housing project from the beginning.

Metro Vancouver recently approved a plan to increase development fees, which drew criticism from Federal Housing Minister Sean Fraser. However, the provincial bill would allow municipalities to use these charges and levies for a wider range of infrastructure projects, including fire halls, police facilities, solid waste facilities, and provincial highway projects that benefit their communities.

The bill aims to provide an alternative to relying solely on property taxes to cover these costs. The proposal has gained support from various stakeholders, including the mayors of Abbotsford, Langley City, Victoria, and New Westminster, as well as the Greater Vancouver Board of Trade. The BC Real Estate Association also voiced its support, as the legislation aligns with the need for more clarity, transparency, and predictability in fees collected by local governments from builders of new housing.

In April, the BC government announced a multi-billion-dollar housing plan aimed at addressing rising real estate prices, increasing construction, and creating more rental units. This includes allocating $4 billion over three years and $12 billion over a decade to boost housing stock and lower prices, implementing changes to zoning laws, and introducing a tax on house-flipping profits.