B.C. Multiplex Rollout Faces Hurdles Amidst Municipal Divergence

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British Columbia's ambitious plan to increase housing density through multiplexes is encountering significant challenges as municipalities adopt varied approaches to implementation. While provincial legislation mandates the allowance of multiplexes on single-family lots, local governments are introducing diverse zoning regulations, fees, and approval processes, creating a patchwork of development conditions across the province.

Key Takeaways

Uneven Implementation Across Municipalities

The provincial government's Bill 44, enacted in 2023, required local governments to amend their zoning bylaws to permit multiplexes—residential buildings with up to six units—on single-family lots. While 97% of municipalities have complied, the interpretation and application of these rules vary significantly. For instance, the City of North Vancouver initially saw only 35 lots eligible for small-scale multiplexes under its new bylaws. The council is now considering increasing the number of permitted units per lot to boost housing capacity.

In contrast, Burnaby has opted to restrict the number of storeys allowed for multiplexes, illustrating a divergence in how cities are integrating this new housing form. Experts note that the provincial vision for multiplexes doesn't always align with on-the-ground implementation realities.

Vancouver's Restricted Approach

The City of Vancouver has implemented "severely" restricted allowable floor space for multiplexes, permitting only a 16% increase over the floor space of a single-family home. This limitation necessitates smaller units and reduces the economic viability of many projects. Furthermore, Vancouver imposes extra fees on multiplexes for additional density, a charge not applied to replacing a detached home. The development permit approval process, though no longer requiring rezoning, remains discretionary and can take up to a year, influenced by project complexity and submission quality.

Multiplexes as a Housing Solution

Despite these obstacles, multiplexes are emerging as a promising and cost-effective housing option. Robert Veerman, a commercial real estate broker, highlights that multiplexes, typically featuring two to three levels of wood-frame construction without underground parking, are cheaper to build than townhouses, which often require extensive underground parking structures. This cost advantage is expected to drive their adoption.

Currently, Vancouver has seen about 16 multiplexes completed and sold, with 455 permit applications in the pipeline. The development landscape includes traditional developers, "citizen developers" who manage projects independently, and co-development partnerships. As the market matures, a mix of multiplex designs is anticipated, with a gradual improvement in design, livability, and cost-effectiveness over time.