The Vancouver skyline with mountain and buildings

Inclusionary zoning for affordable housing

Inclusionary zoning is a tool introduced by the province that requires affordable housing as part of new developments.

Affordable housing requirements are supported through incentives, including additional market housing floor area and Development Cost Levy and Amenity Cost Charge waivers.

Affordable housing requirements may include:

Below-market rental housing
Social housing
Affordable home ownership

Inclusionary zoning is among several financing tools we use to support growth. Learn how all of the financing tools compare (8.8 MB)

Review the Inclusionary Zoning Bulletin

Inclusionary zoning is a planning tool that can require new residential developments in specific areas to include affordable housing.

How inclusionary zoning works

Inclusionary zoning can be applied in different ways, depending on the applicable zoning regulations or rezoning policies.

In-kind only inclusionary zoning

Affordable housing must be provided as part of the development. The units are built on-site and integrated into the project.

In-kind and cash in lieu inclusionary zoning

Affordable housing may be provided in 1 of 2 ways:

As part of the development, with units built on-site and integrated into the project
Through a cash in lieu payment toward affordable housing, in accordance with City policies

Background information on inclusionary zoning

Bill 16 Compliance Report: Transition for existing applications
Through Bill 16 (Housing Statutes Amendment Act), the Province of BC amended legislation governing inclusionary zoning. As a result, we updated inclusionary zoning requirements.

New inclusionary zoning requirements apply to eligible applications submitted on or after June 30, 2026. Applications submitted before that date are generally not subject to the new requirements.
- New inclusionary zoning requirements with cash in lieu options replace density bonus cash contributions in the R1-1, RM-8A, FSD, and FC-2 zones.
- For building permits issued on or after June 30, 2026, previous density bonus cash contributions no longer apply.
- Rezoning, development permit, and building permit applications submitted before June 30, 2026, are not subject to the new inclusionary zoning requirements.
For more information, review the Bill 16 Compliance Update Report to Council (1.5 MB).
Payments, cancellations, and refunds
Timing of payment

Cash-in-lieu payments are required before a building permit can be issued.
- For projects with staged building permits, the full cash-in-lieu payment must be made before the first building permit is issued (Stage 1, typically excavation and shoring).
- For projects authorized through separate building permits, the applicable cash-in-lieu payment must be made for each building permit.
- Cash-in-lieu payments cannot be deferred.
Project cancellation and refunds

Cash-in-lieu payments may be refunded if a project is cancelled before any new construction begins.

To request a refund, contact your file manager.
Reports and resources
Annual reports

The first annual report on inclusionary zoning for 2026 will be published in mid-2027.

Related documents

City of Vancouver virtual assistant

Tell us how you found your conversation today

Inclusionary zoning for affordable housing

Review the Inclusionary Zoning Bulletin

How inclusionary zoning works

In-kind only inclusionary zoning

In-kind and cash in lieu inclusionary zoning

Background information on inclusionary zoning

Bill 16 Compliance Report: Transition for existing applications

Payments, cancellations, and refunds

Reports and resources

Contact information, partner agencies, and website policies