Blog #17 - What is 'Bill 16'?

The city is facing the housing crisis head-on and has been implementing multiple legislations to help alleviate this ongoing problem. However, with the recent implementation of Bills 44 and 47, which enable a faster process of building bigger and denser units, some issues may arise instead of providing safe and affordable housing. These potential issues include sudden eviction of current tenants, current utility services being unable to handle the additional loads from all the buildings being built, a lack of facilities like charging stations, and more. This may lead to chaos! To address these concerns, additional bills are expected to be passed on May 16, 2024, one of which is Bill 16.

So, what is Bill 16? And why does it matter?

Let's start with one of the issues tackled in this bill, which may have significant impacts on developers and owners: it gives the city the right to require developers and owners to upgrade their utility services at the building permit stage. One example of this is the R1-1 of Vancouver, where the city requires an upgraded pad-mounted transformer (PMT) for buildings catering to more than three units.

‘Oh. Okay, but what's the big deal about this?’

In the past, structures with increased density and size in single-family or duplex zones were considered rezoning applications, which required an upgrade in utility services to cater to the needs of multiple users. But now, with the big changes made, rezoning applications for these types of projects are no longer needed. How about the unupgraded sewer, storm drainage, and water services? It's pretty obvious that these will become problems in the future. That’s where Bill 16 comes into play.

Imagine having a broken sewer causing a flood, as recently experienced in Vancouver, disrupting people's lives and causing an awful smell. This is a significant concern that needs addressing.

 This approach is good, but it also raises financial questions. “Okay, I get it now. But if I have to upgrade my utility system, does that mean I have to include the entire neighborhood? That’s expensive.” Well, yeah. This will depend on each city and how they address this issue. Questions such as "Will the first developer upgrade the entire neighborhood services with latecomer agreements?" will need answers. Again, this will fully depend on your city.

 

Another important issue tackled is the protection of tenants from being suddenly evicted from their homes. With these changes, owners planning to demolish parts of their homes to create more units might affect current tenants.

Now, with this bylaw, developers or owners, in case of redevelopment, must provide assistance to current tenants, including financial assistance, moving assistance, help finding another place to live, or entering a new tenancy agreement with the owner in the new building, giving priority and a lower rate. This means that tenants are protected by the government, and owners must consider these factors before taking significant steps.

Although I think this will elicit mixed reactions, especially from homeowners, there are multiple cases where, due to an increase in value, renters fail to pay their rent and decide to stay. I think this issue still needs to be addressed, and I hope that one day, there will be a middle ground between both tenants and homeowners.

Well, that’s it for today! If you liked our blog and want to know more, please follow us on social media. We are working hard to stay as up-to-date as possible and want to share our findings with you! Thank you, and see you in the next one!