Developers slowly adapting to zoning changes: mayor

Some hotly debated zoning changes aimed at speeding up home construction in Winnipeg haven’t triggered a flood of building applications yet, though thousands of housing units are on the way.

The City of Winnipeg was required to impose three key changes to qualify for its $122-million share of the federal housing accelerator fund. As a result, certain types of development became permitted uses, removing the need for potentially costly and time-consuming public hearings and building applications to get them approved.

That change took effect for multi-family housing developments at mall and major transportation corridor sites in late 2024. City planners received zero applications for that development option by early January, though one has since been approved and another is pending.

In June, the same streamlined process was applied to allow two, three or four housing units to be built on a single lot in most residential areas. Seven development permits have now been issued for that option, which are set to create 18 total housing units.

The change was also applied to allow up to four-storey buildings near frequent transit corridors in June, though the city has not yet received a single application to do so.

Mayor Scott Gillingham said it’s not yet clear if the city should change any rules to entice more development.

“These (zoning) changes have only been in place for six to 12 months and so we know that developers need time to adapt to them, to assemble their land … But if you look at the overall (housing accelerator fund) program, we’re really having great success,” said Gillingham.

The city has approved development applications to produce 15,002 new dwelling units since Dec. 5, 2023, a recent staff report notes.

That includes 10,595 units for which building permits have now been approved, which count towards a housing accelerator fund target to deliver 14,101 housing units by Dec. 5.

“There’s a lot of housing development under construction right now … We are making and exceeding our housing start targets in many, many different areas,” said Gillingham.

The mayor noted the city recently modified bird protection guidelines for the mall and corridor development option, along with a couple of other zoning tweaks, in response to developer feedback.

The city should monitor housing outcomes over the next construction season but could consider additional changes after that, he said.

Other changes tied to the housing accelerator fund, such as the creation of a housing concierge to support developers and non-profit housing providers, and targeted grants that support certain projects, are helping attract new home construction, said Gillingham.

Coun. Brian Mayes (St. Vital) said the housing accelerator fund has helped move non-profit housing projects forward, despite limited uptake in units directly tied to the federally required zoning changes.

“The numbers would … certainly suggest that all of this time and agony we spent on the zoning hasn’t really been the cause of an upward surge in housing starts,” said Mayes.

The public hearing tied to allowing up to four housing units on a single lot and allowing buildings of up to four storeys near transit corridors stretched over four days last June, with about 50 residents weighing in.

Mayes said he’s relieved there wasn’t a sudden surge in the number of fourplexes added mid-block on many streets, which some residents feared would dramatically change their neighbourhoods.

The head of a local developers’ association said he didn’t expect a sudden surge in housing applications tied directly to the zoning changes.

“It’s probably a little underwhelming from the city’s perspective but probably not really surprising to industry that there wasn’t a flood of applications,” said Lanny McInnes, executive director of the Urban Development Institute.

The time required to plan new projects, the need to ensure enough sewer and water capacity is available to support bigger buildings and construction regulations all affect how many housing projects are proposed, said McInnes.

“When you go to a four-storey or four-unit project, you are moving into a different area of the building code. It’s going from simple construction to more complex construction,” said McInnes.

For example, a taller building could require an elevator and/or a more complicated fire mitigation system, he said.

joyanne.pursaga@freepress.mb.ca

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