Victoria hopes a new policy will leverage more family-suitable homes getting built as the city says a limited supply of three-bedroom spaces restricts it's ability to attract and retain growing households.
The city's new family housing policy aims to encourage more two- and three-bedroom dwellings being included in rezoning proposals for new multi-unit developments that are four storeys or higher.
City staff say those types of dwellings are becoming badly needed as families – especially ones who rent – face unaffordable and limited options in Victoria.
"The market is not responding to the urgent need for three-bedroom homes in secured rental buildings," a staff report says, pointing to federal data that shows only 18 three-bedroom units have been added to the local rental market over the last several years.
Council on Thursday (June 13) endorsed the policy, which only applies to rezonings and is expected to come into effect on Sept. 1.
The policy will require 30 per cent of units in new strata buildings have two of more bedrooms, with at least 10 per cent having to be at least three-bedroom spaces. It would also require two or more bedrooms in a quarter of the units in new rental apartments, while five per cent of those building units would have to be at least three-bedrooms. The reduced requirements for rental applications are due to more challenging market conditions standing in their way of those projects.
Despite endorsing the plans, councillors expressed some wariness about bringing in new expecations on builders, although staff said the policy would be flexible and the city will continue to work with developers so new housing isn't deterred. To help builders adhere to the policy, the city will offer incentives like reduced parking requirements or increased density during negotiations on how projects can include more family-sized units.
An economic analysis found, under current market conditions, rental projects would struggle to remain viable if they were required to provide three-bedrooms in five per cent of units, without incentives. Strata projects providing three-bedrooms in10 per cent of their units seemed economically viable in most scenarios, the analysis found.
Staff said building any kind of rental project is a challenge right now, but incentives from the city and upper levels of government can mitigate impacts from the family housing policy. The family housing policy aims to help those priced out of missing middle-style buildings because as the city grows, more families will be living in apartments, staff added.
Council also endorsed was a suite of family-friendly design guidelines, but those are just suggestions for builders to include in their projects. The guidelines aim to create homes that: ensure families have rooms where they can gather; have entrances that facilitate easy coming and going for multiple people or those with mobility needs; include ample storage and in-suite laundry; and more.
Applications seeking to build affordable, supportive and seniors' housing are not expected to conform to the policy.