City of Surrey: Community Amenity Contribution and Density Bonus Program Update

On December 16, 2019, City of Surrey Council adopted bylaw changes for a City-wide Community Amenity Contribution (“CAC”) and updates to City Policy O-54 (Density Bonus Policy).

Background

Community Amenity Contributions are permitted under Section 482 of the Local Government Act which authorizes municipalities to permit zoning density bonuses in exchange for community amenities and/or affordable or special needs housing. Prior to the adoption of the new bylaw, the City of Surrey implemented fixed-rate CACs for development occurring within the City’s Secondary Plan Areas (e.g., Local Area Plans, Neighbourhood Concept Plans, Infill Areas). For development located outside of a Secondary Plan Area and required amendment to the Official Community Plan (“OCP”), CACs were negotiated and provided as cash or beneficial in-kind contributions. Generally, CACs are intended for community facilities such as parks, libraries, fire and police facilities, childcare facilities, and transportation services.

In October 1, 2007, Council approved Policy O-54 “Interim Bonus Density Policy” for City Centre and Guildford areas. Policy O-54 is based on a land lift model, where a developer is required to provide contribution equal to a percentage of the additional value in land created by the increase in density. Policy O-54 has been amended over the years and has allowed higher density developments in designated areas to increase density by up to 20% in exchange for the provision of affordable housing or community amenities.

CAC Program Changes

The most recent amendments to the Zoning Bylaw and the Policy O-54 set out two tiers: one for development consistent with Secondary Plans and the OCP allowable densities; and the second for development requiring density increases beyond those permitted in Secondary Plans and the OCP. Both tiers are based on the land-lift model with a target contribution rate of 75% of the increase in land value that is commonly seen in Metro Vancouver municipalities with CAC policies.

Tier 1

For a rezoning application that complies with the Secondary Plan and OCP designated densities, the projects would pay a per-dwelling unit fixed rate for rezoning. For instance, if the Secondary Plan and the OCP permits a Floor Area Ratio of 1.5 and the rezoning application proposes a density of 1.5, the application would fall under Tier 1. The amended Schedule G of the Zoning Bylaw details the Tier 1 CAC rate for rezonings within the City Centre and Town Centre areas, and rezonings for the rest of the City.

Tier 2

For development requesting additional density above the permitted density set out in an approved Secondary Plan or OCP designation, a contribution based on 75% of the land-lift value is expected.

The Tier 2 CAC approach is further categorized for projects in the City Centre and Town Centres that request additional density; and for projects outside of Town Centres and Secondary Plan areas.

For projects within the City Centre and Town Centres, the charge for the “bonus” density is based on square footage rather than number of dwelling units. A flat rate per square foot to express the land-lift values is intended to provide predictability and efficiency.

For projects outside of Town Centres and Secondary Plan areas, the contribution for the “bonus” density is expected to be negotiated due to the variability in locational factors and land lift. City Policy O-54 has been amended with detailed parameters for determining the 75% land-lift CAC contribution on a case-by-case basis.

Phasing

Both Tiers of the CAC Program will be phased in over a three-year period from January 1, 2020 to January 1, 2022. Applications which have received 3rd Reading of related Zoning Bylaw amendments by the end of 2019 are exempt from the CAC Program. A sunset clause for completion of rezonings within one year of 3rd Reading is in place.

The CAC Program only applies to residential projects requiring a rezoning.  Exempted uses include:  non-residential uses, secondary suites, purpose-built rental (with a Housing Agreement), social or non-market affordable housing dwelling units, dwelling units used as a caretaker’s residence, supportive housing projects, one-for-one rental replacement units (with a Housing Agreement), and agricultural properties.

If you wish to learn more  about the City of Surrey’s CAC and Density Bonus Program, you may contact one of our Planners at Pacific Land Group for more information at info@pacificlandgroup.ca.

The full Corporate Report detailing the CAC Program can be accessed here: https://www.surrey.ca/bylawsandcouncillibrary/CR_2019-R224.pdf.