Vancouver to Review Development Approvals Process

A recurring theme in our posts is the need for faster permit approval processes for housing developments – especially for much needed purpose-built rental properties like Willoughby Walk. Our industry continuously lobbies municipal and provincial governments for increased capacity for permit processing. The backlog adds thousands of dollars to the cost to build, which is already astronomical in B.C. These costs are passed on to homebuyers and renters, adding fuel to the dumpster fire that is the housing affordability crisis.

Our industry often turns to the Urban Development Institute to help us voice issues of concern. And in this case, the UDI delivered. After extensive lobbying, B.C.’s Minister of Municipal Affairs and Housing, Selina Robinson, announced that the province is undertaking a Development Approvals Process Review to assess how the local government development approval processes are working in B.C. The UDI’s newsletter claims that the review “will consider all stages from concept to occupancy, including subdivision, rezoning, development and building permits and key aspects of those stages, including submission requirements, public hearings and education.”

UDI President Anne McMullin claims that rezoning approvals for multifamily housing projects can take five to seven years in the city of Vancouver. There are so many different departments within the city’s bureaucracy, each with their own pet nit-picks, that it’s absurdly difficult to meet all of their requirements on the first few go-rounds.

These delays mean less inventory, less choice, and ultimately higher prices for buyers. The prices are further driven up by the permitting fees and taxes, which account for fully 30-40% of the cost of an average unit in Vancouver.

Daniel Greenhalgh, ENM’s co-founder, commends Minister Robinson for starting the review process. “Right now, permits for purpose-built rentals are about the same as market-rate condos. That has to change. We know that the biggest priority for both renters and developers is an increase in the supply of rental housing. There has to be a streamlined permit review process for rental housing and affordable housing projects, along with further incentives for developers to take them on.”

McMullin believes the city could double or triple the number of rentals being built, and hopes they can reach that goal after Robinson’s review. This increase in supply is crucial with a projected annual growth rate of 30,000 people per year in Metro Vancouver.

The Development Approvals Review Working Group held its first meeting on December 7th and will continue to meet in the first six months of 2019. The Canadian Home Builders’ Association is represented in the group and welcomes any input on suggestions for improvement. You can email them here.