Victoria’s Official Community Plan for Housing, Climate and Mobility Advances Density Bonuses, Zoning Modernization, and More

Victoria’s 10-year Official Community Plan update, which was branded “Victoria 2050”, is a mid-cycle refresh of the City’s 30-year land-use strategy, designed to tackle housing shortages, climate imperatives and evolving transportation needs. Key parts of the plan may be enacted later this year.

At its heart are several interlocking programs: modernized zoning rules to guide growth in town centres, villages and residential neighbourhoods; a structured Density Bonus Incentive that converts additional building height and floor area into community benefits; a Tenant Protection and Assistance framework to lessen displacement; heritage-conservation incentives to reward adaptive reuse; and strengthened mobility, parking and design guidelines to foster walkable, transit-oriented communities. 

Background

The 10-year update process was launched in early 2024 to ensure the Official Community Plan remains responsive to demographic growth, housing demand and climate targets. This cycle focuses on implementation tools, such as new bylaws, zoning modernizations and targeted policy reset, without altering the overarching Vision 2050 goals. Through spring 2025, Victoria City Council reviewed public engagement findings and directed staff to draft the accompanying regulatory packages for final adoption later this year.

A companion “Big Moves” report set out deliverables including an updated OCP, revised zoning bylaw, enhanced development permit guidelines and targeted study requirements to streamline approvals.

Density Bonus Incentive Program

To bridge the gap between base zoning and desired growth, Victoria 2050 looks to formalize a Density Bonus Incentive. Incentives would take effect upon zoning bylaw adoption, anticipated in Q4 2025. Property owners in “Priority Growth Areas” may build beyond base Floor-Space Ratios, up to five or six storeys in select nodes, by offering community benefits such as affordable or family-friendly units. 

An independent analysis by Urban Systems Ltd. quantified the “land-value lift” generated when densities rise from the standard 1.6:1 to 2.5:1 or 2.75:1. That lift varies significantly by neighbourhood, with the study estimating capture-value of roughly $32–$91 per square foot under FSR 2.5 and $46–$91 under FSR 2.75.

The City also plans special concessions for family housing; projects allocating at least 15% three-bedroom units may access enhanced lifts to encourage multigenerational living.

Zoning Modernization and Place-Based Guidance

Victoria 2050 also introduces an updated zoning bylaw that reflects the OCP’s place-based hierarchy. The zoning modernization process was initiated in early 2024, and a draft bylaw reviewed through spring 2025; final adoption is expected by the end of 2025.

Town Centres, or areas clustered around major transit hubs, will allow mid- to high-rise mixed uses with active street-front amenities. Community Villages will remain primarily low-rise (up to four storeys, ~2:1 FSR) but with incentives for ground-floor retail and community services. The broader Residential Fabric is stratified into form-based categories, from single-family and duplex lots to Heritage-Conserving Infill (1.1:1 FSR) and Residential Infill (1.6:1 FSR, 14 m height). Intensive Infill allowances target select corridors and nodes for five-storey developments to meet density targets without wholesale upzoning.

Large sites must follow comprehensive development plans that integrate open spaces, multimodal connections and mixed uses. These master-planning requirements raise up-front costs and planning complexity, but also unlock significant scale and design flexibility.

Heritage Conservation and Urban-Design Incentives

To encourage adaptive reuse and retention of heritage assets, Victoria 2050 consolidates and streamlines Heritage Conservation Area guidelines city-wide, while retaining local criteria where needed. Projects preserving heritage façades or structures may qualify for additional density or height bonuses. Concurrently, the Plan codifies a “Perimeter-Block” concept—orienting buildings to frame interior courtyards and green infrastructure, reinforcing high-quality public realms and pedestrian connectivity. These incentives would be implemented alongside the revised zoning bylaw upon Council adoption in late 2025.

Mobility, Parking and Application Requirements

Consistent with climate goals, new Mobility Hubs align with Town Centres to prioritize transit, walking and cycling. On-site parking minimums are generally relaxed, provided parking is consolidated in below-grade parkades or set on minor streets, freeing ground-floor space for active uses. Select hubs may offer shared parking facilities to reduce individual project costs and support adjacent development densities.

Major development applications must now include comprehensive technical studies, including shadow, wind, traffic, servicing, market-economics, geotechnical and heritage assessments, as well as detailed tenant-displacement analyses. While this raises up-front due diligence effort, it aims to streamline Council and staff reviews by ensuring complete submissions. Mobility Hub designs and revised parking policies were drafted through 2024–2025; full implementation would be scheduled following the final OCP and bylaw adoption in Q4 2025.