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B.C. Bill 25 mandates small‑scale multi‑family zoning and tightens short‑term rental rules

Imposes provincial minimum permissions for small‑scale housing, limits municipal parking mandates, and updates short‑term rental enforcement and First Nation coordination rules.

The Brief

This Act amends the Local Government Act and the Vancouver Charter to require local governments and Vancouver Council to permit specified small‑scale multi‑family housing types in zones that would otherwise be limited to single‑family uses. It defines “restricted zone” and enumerates the housing forms (e.g., duplexes, single houses with accessory units) that municipalities must allow, gives the Lieutenant Governor in Council power to regulate siting and form, and sets new compliance dates and transition rules.

Part 2 revises the Short‑Term Rental Accommodations Act to integrate participating First Nations’ short‑term rental laws into the provincial framework, tighten registration and review procedures, authorize publication of compliance and enforcement information (including personal information), and allow the director to negotiate agreements to reduce or cancel administrative penalties. The bill reshapes municipal discretion on parking for mandated units and centralizes several implementation choices at the provincial level—changes that matter to planners, builders, short‑term rental platforms and municipal administrators.

At a Glance

What It Does

The bill requires zoning bylaws to permit specific small‑scale multi‑family housing types in formerly single‑family zones (defined as "restricted zones") and prevents municipalities from requiring off‑street parking for certain mandated units, subject to provincial regulation. It also amends the Short‑Term Rental Accommodations Act to recognize participating First Nations’ short‑term rental laws, limit review grounds, and expand publication and enforcement options.

Who It Affects

Municipal planners and councils, Vancouver City Council, residential developers and infill builders, short‑term rental platforms and hosts, and participating First Nations. Provincial ministries gain rule‑making and enforcement levers; local governments face bylaw amendments, compliance processes and potential ministerial orders.

Why It Matters

It shifts concrete zoning outcomes from local discretion to provincially mandated minimum permissions and regulatory ceilings (notably on parking), accelerating opportunities for low‑rise infill while constraining municipal tools. For short‑term rentals, the Act centralizes coordination with First Nations and tightens enforcement mechanics, changing how registration, reviews and penalties are handled.

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What This Bill Actually Does

The Act rewrites the small‑scale multi‑family framework in the Local Government Act and the Vancouver Charter. It introduces the term “restricted zone” to capture areas that, but for this law, would allow only single‑family homes (with variations allowed for accessory units).

For those restricted zones the bill requires municipalities and Vancouver Council to permit a defined menu of housing forms—detached houses with one or two additional units, duplexes (with optional accessory units), and similar low‑rise types—and to allow the density needed to accommodate them. The manufactured‑home zones are explicitly excluded from the new rule.

Provincial regulation power is broadened: the Lieutenant Governor in Council can prescribe siting, size, form, height/bulk and other design or density controls for those mandated units, and municipalities must revise bylaws in accordance with any such regulations by the prescribed date. Where municipalities fail to comply, the minister may, with the Lieutenant Governor in Council’s approval, issue orders that enact or amend local bylaws to ensure the required uses, forms and parking rules are in place.The Act also restricts municipal parking requirements.

Councils cannot require off‑street parking for the residential use of housing units that the bill mandates under one specific category of small‑scale multi‑family (the subsection that captures certain small infill forms). For other mandated categories the province may set an upper limit on required parking, create exemptions and prescribe compliance dates; municipalities then must follow those regulations.

The Act delays application of official community plan effect and preserves previously granted extensions for compliance, while creating a process for local governments to request time extensions when extraordinary circumstances prevent timely compliance.In the Short‑Term Rental Accommodations Act, the government expands the statutory architecture for coordinating with participating First Nations: it recognizes short‑term rental First Nation laws and related First Nation laws within the Act’s scope, allows coordination agreements to apply different rules to different treaty or Nisga’a areas, and clarifies that a “short‑term rental bylaw” can cover accommodations that differ in the defined rental period. It tightens procedural safeguards around registrations and reviews by prohibiting the same official from both deciding a registration and reviewing it, limiting reviewable grounds (to new evidence and prescribed grounds), and criminalizing provision of false or misleading information to the registrar.Enforcement and transparency tools for short‑term rentals expand: the director may publish orders, decisions and penalty payment status (potentially including personal information), must avoid assigning multiple investigatory/enforcement/review powers to the same individual in a single matter, and may enter into negotiated agreements that reduce or cancel administrative penalties subject to regulations.

Transitional provisions preserve some pre‑existing extensions and phase in selective amendments by regulation or on set dates specified in the commencement table.

The Five Things You Need to Know

1

By June 30, 2026, local governments and Vancouver Council must permit the specific small‑scale housing types listed for any "restricted zone" where residential use would otherwise be limited to single‑family housing (manufactured‑home zones excluded).

2

Councils must not require off‑street parking for the residential use of housing units covered by the bill’s subsection for small‑scale multi‑family (effective on or after June 30, 2024 for the parking prohibition clause).

3

The Lieutenant Governor in Council can make detailed regulations on siting, size, type, form, height/bulk and density for the mandated units, and municipalities must amend bylaws to align with those regulations by prescribed compliance dates.

4

If a local government or Council fails to amend bylaws, the minister (with Lieutenant Governor in Council approval) may make orders to enact or amend zoning or parking bylaws to achieve the Act’s requirements.

5

Under the Short‑Term Rental Act changes, the registrar cannot both decide a registration and conduct its review, reviews are limited to new evidence or prescribed grounds, the director may publish enforcement information (including personal data), and may negotiate agreements to reduce or cancel administrative penalties.

Section-by-Section Breakdown

Every bill we cover gets an analysis of its key sections. Expand all ↓

Part 1 — Sections 1–12 (Local Government Act amendments)

Rewrites mandatory small‑scale multi‑family zoning and regulatory leash

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Section 481.3 is overhauled to define “restricted zone” and to require zoning bylaws to permit an enumerated list of small‑scale housing types (detached with accessory units, duplexes and limited additional units). The change narrows the previous language by specifying which single‑family‑only zones are covered and clarifies that the mandatory permissions apply only where residential use is permitted. The provision also preserves an exemption route and ties local implementation to any provincial regulations under section 481.3(6). Practically, this forces municipalities to re‑write restrictive single‑family rules into bylaw language that allows a defined menu of low‑rise housing types.

Section 4 (new s.525.2)

Parking ceiling and provincial rule‑making for parking

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The Act adds a new section that bars municipalities from requiring off‑street parking for the residential use of housing units required under the bill’s specific small‑scale category, while giving the Lieutenant Governor in Council the power to set an upper limit on required parking for other mandated categories and to create exemptions and compliance timelines. This splits parking authority: for some mandated units municipalities lose the ability to require any parking; for others the province can impose a cap or exemptions. That mechanism aims to reduce parking as a barrier to infill but hinges on later regulations for finer controls.

Sections 9–11, 786.1 and related changes

Compliance timing, extension process and ministerial enforcement orders

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The Act pushes compliance deadlines to 2026 in multiple places, preserves previously granted extensions, and creates a new ministerial extension process allowing local governments to apply for extra time if extraordinary circumstances prevent compliance. If a municipality still fails to amend bylaws, section 787 (as amended) authorizes the minister, with Lieutenant Governor in Council approval, to enact or amend the relevant bylaws directly to ensure required uses, siting, density and parking outcomes. That combines a regulated‑by‑province approach with a backstop of direct provincial ordering.

3 more sections▾
Part 1 — Sections 13–23 (Vancouver Charter amendments)

Parallel duties on Vancouver Council and matching enforcement tools

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The Vancouver Charter receives mirror amendments so Council must permit the same small‑scale housing types and comply with provincial regulations on siting, height and form. A matching parking prohibition and regulation framework is added (s.306.02), with equivalent ministerial order powers if Council fails to act. The changes ensure Vancouver is subject to the same minimum permissions and provincial control levers as other municipalities while preserving specific Charter references to height, bulk and district terminology.

Part 1 — Transitional provisions (Sections 24–32)

Heritage, prior extensions and OCP effect preserved and phased

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The Act exempts certain heritage designation bylaws and heritage revitalization agreements that were already at specified procedural stages from the new limits, preserves extension grants made under the prior regime, and delays the application of official community plan effect for bylaw amendments adopted to comply with the new section (effectively insulating those compliance bylaws from OCP conflict for a limited period). These provisions reduce the risk that compliance work will be undone by other statutory constraints while municipalities retool their bylaws.

Part 2 — Short‑Term Rental Act amendments (Sections 33–51, 52)

First Nations coordination, registration/review limits, publication and negotiated penalties

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The Short‑Term Rental Act amendments fold participating First Nations’ short‑term rental laws and related First Nation laws into the Act’s scheme, allow coordination agreements to apply different rules in different First Nation treaty areas, and broaden the definition of business licence requirement. The registrar’s duties are tightened: the registrar cannot be both deciding official and reviewer; reviews are limited to new evidence or prescribed grounds; providing false information to the registrar is prohibited. The director may publish enforcement outcomes and penalty payment status (and include personal information), must avoid assigning multiple enforcement/review functions to one person in a single matter, and may enter agreements to reduce or cancel administrative penalties under regulation. Transitional rules preserve certain pending reviews and previous procedural regimes for matters started before the amendments.

Who Benefits and Who Bears the Cost

Every bill creates winners and losers. Here's who stands to gain and who bears the cost.

Who Benefits

  • Households seeking lower‑rise infill in formerly single‑family neighbourhoods — They gain by-right access to duplexes and accessory units without lengthy rezoning, lowering barriers to building missing‑middle housing.
  • Developers and infill builders focusing on small‑scale projects — They get clearer minimum permissions and a larger market for low‑rise products, reducing approval risk where bylaws are brought into compliance.
  • Participating First Nations — The Act formally recognizes short‑term rental First Nation laws and allows coordination agreements, giving them a statutory seat at the table for regulating platform services within treaty or Nisga’a areas.
  • Renters and prospective tenants in constrained markets — By forcing permission for more small‑scale units, the Act can expand supply options in lower‑rise housing forms where single‑family restrictions previously blocked them.

Who Bears the Cost

  • Municipalities and Vancouver Council — They must revise numerous bylaws, administer extension applications, and potentially lose parking control and related revenue or enforcement discretion, while facing ministerial orders if they fail to comply.
  • Existing single‑family property owners and neighbourhood associations — They will see increased permitted density and potential changes to neighbourhood character and on‑street pressure as municipal parking mandates are constrained.
  • Local planning and building departments — They absorb increased workload to update bylaws, process compliance amendments, and interpret new provincial regulations and ministerial orders, without dedicated funding in the Act.
  • Short‑term rental platforms and hosts — Expanded publication of enforcement actions and tighter registrar controls increase compliance obligations and the risk of public disclosure of personal information; hosts may face negotiated penalties or stricter registration review limits.

Key Issues

The Core Tension

The bill confronts a core trade‑off: accelerate housing supply by imposing province‑wide minimum permissions and limiting local tools (notably parking requirements) versus preserving local planning authority to manage neighbourhood character, infrastructure and local service impacts. Similarly, the Short‑Term Rental changes balance stronger provincial enforcement and coordinated First Nation recognition against narrowed review rights, expanded publication of personal data, and more centralized administrative control—choices that resolve some problems while creating new governance and fairness tensions.

The Act centralizes significant regulatory choices at the provincial level while keeping municipalities on the hook to rewrite bylaws and implement changes. That design speeds minimum permissive outcomes but leaves open how detailed siting, design and parking rules will be set — most of the fine print depends on regulations under the Lieutenant Governor in Council.

Until those regulations land, municipalities and developers face uncertainty about allowable forms, precise siting, and whether caps or exemptions on parking will apply in their communities.

The parking mechanism is a blunt instrument: an absolute municipal prohibition for one class of mandated units and a provincial cap‑and‑exemption model for others. That reduces a common barrier to infill but risks mismatches between parking supply and neighbourhood transportation realities, especially in areas with limited transit or constrained curbside capacity.

The Act’s delay and extension processes mitigate some timing pressures but create administrative burden as municipalities apply for and justify extraordinary‑circumstance extensions.

On short‑term rentals, the expansion of publication powers (including personal information) and the director’s authority to negotiate penalty reductions raise privacy and fairness questions. Limiting review grounds to new evidence or prescribed bases narrows procedural avenues for appellants; coupled with the prohibition on the same official handling decision and review, the changes reallocate decision‑making and appeal dynamics.

The statutory recognition of First Nation laws improves coordination but also introduces potential territorial complexity: different rules may apply across neighbouring areas, creating compliance and enforcement patchworks.

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