Developers will be required to provide more rental housing supply through their upcoming developments in Richmond, either through an in-kind contribution that incorporates rentals into their project or a financial contribution towards the pool of funding for city-led projects.

During a public meeting last week, Richmond City Council approved policies that now require a minimum 15% low-end market rental residential floor area in multi-family projects with over 60 apartment units, within the area deemed to be the City Centre Area Plan. This is up from the previous policy of 10%.

For future multi-family projects with 60 units or fewer, the developers will be required to pay rental cash-in-lieu rates, which will be updated every two years.

The new rates vary between the new city centre and outside of city centre categories. They are $8 per sq ft outside of the city centre and $12 per sq ft inside of the city centre for single-family rezonings, $12 per sq ft outside of the city centre and $18 per sq ft inside of the city centre for townhouse developments, and $15 per sq ft outside of city centre and $25 per sq ft inside of the city centre for apartment developments with 60 units or fewer.

This is up from the existing citywide rates of $4 per sq ft for single-family, $8.50 per sq ft for townhouses, and $10 to $14 per sq ft for apartments. According to city staff, these rates (last updated in 2017) are now outdated relative to current housing market conditions, with both construction costs and average sale prices now significantly higher compared to five years ago.

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