Incentives for developers: transferable heritage density bonuses

Where density bonuses can be transferred

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  Within the Metro Core

  It may be possible to transfer heritage density from donor to receiver sites throughout most of the Metro Core.

  Potential receiver site locations

  • Downtown District (DD)
  • West End (RM-5, RM-5A, RM-5B, C-5, C-5A, C-6)
  • Central Broadway (C-3A)
  • Southeast False Creek (SEFC) from sites located outside of SEFC (noting that density may not be transferred from inside SEFC to any site located outside of SEFC)

  Potential donor site locations

  • Downtown District (DD)
  • West End (RM-5, RM-5A, RM-5B, C-5, C-6)
  • Central Broadway (C-3A)
  • Chinatown (HA-1 and HA-1A)
  • Gastown (HA-2) zoning districts
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  Outside of the Metro Core

  Outside of the Metro Core, heritage density transfers may occur through CD-1 rezonings and if the donor and receiver sites “are not separated by a zoning boundary or use, density, or height district boundary in an Official Development Plan”, unless the sites are both within the same block.

  Review transfer of density policies and procedures PDF file (829 KB)

Permits and permissions

The type of permit or permission you need to receive transferable density depends on the amount of additional density you require and the location of the receiver site:

• Development permit application: If your project includes up to a 10% increase in density inside the Metro Core
• Rezoning application: If your project includes an increase of density of more than 10% or your site is outside the Metro Core

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  Get a development permit

  In several of the zoning districts within the Metro Core, the Development Permit Board may approve a development permit application requesting an increase in density of up to 10% more than is permitted by the existing zoning.

  In these cases, the Board will consider the impact of a density increase on:

  • Shadowing
  • Floor plate shape and size
  • Height and public views

  They will also consider the opinions of anyone who considers themselves affected by the increased density.

  Under Council policy, these sites cannot be receiver sites:

  • Already receiving a 15% hotel bonus
  • Already receiving a heritage density bonus
  • Containing a single room occupancy (SRO) hotel, unless arrangements are made to secure or replace units
  • Zoned CD-1, unless a provision is included in the CD-1 bylaw
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  Make a rezoning application

  You need to submit a rezoning application if the proposed increase in density is more than 10%, or the receiver site is located outside of these areas:

  • Downtown District (DD)
  • West End (RM-5, RM-5A, RM-5B, C-5, C-5A, C-6)
  • Central Broadway (C-3A)
  • Southeast False Creek (SEFC) from sites located outside of SEFC (noting that density may not be transferred from inside SEFC to any site located outside of SEFC)

Additional steps and requirements

Both development applications and rezoning applications have two additional requirements when density transfers are involved:

• At the application stage, proof that the donor site has the necessary amount of density available
• At the approval stage, proof that the sale of density has been completed

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  Proof that the donor site has enough density available

  To prove that the donor site has the necessary amount of density and is eligible for transfer, both development applications and rezoning applications must include Letter A.

  Letter A must be signed by both the donor site owner and the receiver site owner. It provides us with evidence that the donor site has available the amount of density requested by the receiver site, and that a conditional agreement has been reached for the sale of this amount of density.

  • Letter A for development applications PDF file (32 KB)
  • Letter A for rezoning applications PDF file (27 KB)

  If you submit a rezoning application, you must submit Letter A before your public hearing.

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  Proof that the sale of density is complete

  Before a development permit can be issued or a rezoning by-law enacted, you must submit Letter B to confirm that the sale of density has been completed.

  • Letter B for development applications PDF file (36 KB)
  • Letter B for rezoning applications PDF file (31 KB)
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  What to do if you are unable to obtain heritage density from a donor site

  As part of a development permit application, Heritage Amenity Shares (HAS) may be purchased. Purchasing HAS is very similar to purchasing density from the Transferable Heritage Density Inventory, as both lead to an increase in floor area.

  HAS are specified financial contributions towards our heritage conservation fund in exchange for a maximum increase of 10% of permitted floor space ratio of a development.

  Submit Letter C PDF file (84 KB) as the statement documenting efforts in good faith to purchase density from donor sites listed on the Transferable Heritage Density Inventory.

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  What to do if rehabilitation is not complete by the time a development permit is issued or rezoning enacted

  If the heritage rehabilitation on a donor site is not complete by the time the development permit is issued or rezoning enacted for a receiver site, you must submit a progress report with Letter B.

  The progress report includes:

  • A report from the construction consultant (quantity surveyor) and heritage consultant for the project, providing details of the completed and uncompleted conservation work and the associated costs
  • The heritage consultant’s written confirmation that the work completed conforms with the development permit (including the conservation plan and outline specifications)
  • A summary of the total density available for transfer and details of any previous transfers, including amount and receiver site addresses
  • The amount of density requested for transfer, the receiver site of the current request, and the resulting net balance of unsold density on the donor site
  • A calculation verifying that the amount of density remaining after the current transfer request is sufficient to cover the costs to complete the heritage rehabilitation. If the amount of density remaining onsite is lower than the cost to complete rehabilitation, you must submit a letter of credit.

When density is transferred

We allow heritage density to be transferred under either condition:

• After the rehabilitation of the building on the donor site is complete
• After you meet all other provisions of the Heritage Revitalization Agreement

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  Heritage Revitalization Agreements

  A Heritage Revitalization Agreement, registered against the donor site, specifies the amount of density available for transfer, as well as conditions that must be met before the density becomes available for transfer.

  These are some examples of conditions you may need to meet:

  • Complete the rehabilitation of the heritage building, issue an occupancy permit, and submit a final progress report.
  • Sufficient rehabilitation of the heritage building has taken place to warrant a partial release of the density, and the donor site owner has submitted a progress report in support of a request for a partial release of density.
  • The donor site owner has provided us with a letter of credit for 200% of the value of the density being transferred.
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  Letters of credit

  Once the donor site owner has received a development permit and a building permit for the rehabilitation of the heritage building, it is possible to sell all or part of the available transferable heritage density prior to completion of the rehabilitation of the building, if you provide us with a letter of credit.

  The donor site owner contacts the heritage planner, who will coordinate the procedure with the City Treasury.

  The letter of credit is:

  • Unconditional, irrevocable, and self-renewing
  • For 200% of the value of the density to be transferred
  • Arranged through a Schedule 1 Canadian chartered bank

  Note The value of the density for transfer is considered to be the value at the time of Council’s approval.

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  Request for a drawdown on a letter of credit

  The donor site owner may request a drawdown in the dollar amount of the letter of credit previously submitted, provided part of the rehabilitation work has been completed, by submitting a progress report to the heritage planner.

  After reviewing the progress report, the heritage planner and City staff from Real Estate Services will determine if the request can be supported.

  We need to hold security to cover the costs of the outstanding work to complete all aspects of the development. Security can be a combination of the unsold density valued at the time it was approved by Council, and a letter of credit valued at 200% of the portion of the work secured by the letter of credit.

  The lawyer for the donor site owner then requests a drawdown of the letter of credit in the amount advised by the heritage planner.

  Upon completion of the heritage rehabilitation and issuance of an occupancy permit, the donor site owner will submit the final progress report to the heritage planner. Any letter of credit will then be returned to the donor site owner upon written request.

  A progress report is also required for a drawdown on a letter of credit or for release of the density held by the City. Progress reports are confirmed by the heritage planner in consultation with other staff. Allow sufficient time for progress reports to be processed.

  The progress report must include:

  • The heritage conservation consultant’s written confirmation that the work completed conforms with the development permit (including the conservation plan and outline specifications)
  • A summary of the total density available for transfer and details of any previous transfers including amount and receiver site addresses
  • The amount of density requested for transfer, the receiver site of the current request, and the resulting net balance of unsold density on the donor site
  • A calculation verifying that the amount of density remaining after the current transfer request is sufficient to cover the costs to complete the heritage rehabilitation. If the amount remaining for transfer is lower than the cost to complete, you must submit a letter of credit.