This week, Surrey City Council endorsed a new initiative that would eliminate the rezoning requirement for non-market affordable housing projects, in an effort to accelerate the development of this much-needed kind of housing.
Under existing policy, in Surrey and also many other municipalities, most development projects have to first go through a rezoning process that often adds a significant amount of time to the development process — even if the proposal aligns with what the City has envisioned for the site.
Because development projects are almost always using financing, time directly translates to higher costs, and these additional costs can make a very big difference for non-market rental housing projects, which cannot factor in profit margins like a market rental or condo project can.
Recognizing this, the City of Surrey is planning to provide what it calls "as-of-right" zoning for non-market affordable housing projects, removing the rezoning requirement for projects that are compliant with the City's Official Community Plan (OCP) and meet the following requirements:
- The project is no more than six storeys, or up to eight storeys in Tier 3 Transit-OrientedAreas (TOAs);
- The property is owned and operated by a registered non-profit housing provider, nonprofit housing co-operative, or government agency;
- The units are rental tenure only;
- The project's affordability and rental tenure are secured via a housing agreement; and
- The property is designated for low-rise residential development in the OCP.
"The rezoning process can be a significant hurdle that non-profit housing providers and co-ops often struggle to overcome with regards to securing financing for non-market housing projects, as this financing is often provided with limited time constraints and strict reporting requirements," said City staff in a corporate report received by Council earlier this week.
"As such, the rezoning process can add time and costs which directly impact the affordability of the non-market units offered and, in some cases, the viability of the entire project," the report continued. "The added uncertainty of the rezoning process can result in an otherwise viable project losing out on funding to another project elsewhere, often in another municipality, that is more 'shovel-ready,' where no rezoning is required."
According to the City, other municipalities such as New Westminster, Victoria, Saanich, and Squamish have also made the change to provide as-of-right zoning for non-market affordable housing projects.
This week, Surrey City Council endorsed the policy change and City staff will now work on preparing the necessary bylaw amendments before bringing them to Council for approval at a later date.
Housing In Surrey
The report also outlines the current state of non-market housing in Surrey.
"In 2024, Surrey had 6,349 non-market housing units. Of these, 1,655 units were non-profit rental and/or co-op units. Per capita, Surrey has fewer BC Housing-affiliated non-market housing units than the regional average, with 0.8 units per 100 people in Surrey versus 1.7 units per 100 people in Metro Vancouver."
"There is a significant demand for non-market rental housing in Surrey, especially as the cost of housing in the private market has increased," the report continues. "From 2013 to 2023, average market rents have increased from $846 to $1,548 per month and the number of Surrey households on the BC Housing Registry Waitlist grew by 208% from 1,321 to 4,068."
The move to eliminate the rezoning requirement for non-market housing projects comes as part of the City of Surrey's Housing Accelerator Fund Action Plan, which it committed to in January 2024 in exchange for $95.6 million from the federal government. This week, Council also received an 18-month progress update on its action plan.
The action plan consists of nine major initiatives, such as providing development incentives for multi-family and affordable housing units, improving permitting processes, and increasing the supply of multi-unit housing near transit. According to the progress update, the City is making good progress on all of the initiatives.
A summary of the City of Surrey's Housing Accelerator Fund Action Plan and progress as of July 2025. / City of Surrey
"From exceeding the provincial housing targets, to implementing process improvements, the City is delivering on our commitment to increasing the housing supply," said Mayor Brenda Locke in a press release this week commenting on the progress update. "I would like to thank the federal government and CMHC for their continued support as we work together to offer diverse and affordable housing options in Surrey. We're dedicated to building a city for everyone — where you can live, work, learn, and thrive."
Because of its progress, Surrey was one of 27 municipalities across the country to be awarded Housing Accelerator Fund bonuses earlier this year. Surrey received $5.1 million, bringing its total to $100.7 million, of which it has received 49%, according to the City. Money from the Housing Accelerator Fund is paid out in installments and the City has received two installments so far. The third installment is expected in early-2026, while the fourth and final installment is expected in early-2027, assuming the City continues to carry out its action plan. Each of the four installments are around $25 million.
The City of Surrey will be making its next Housing Accelerator Fund progress update in Q1 2026.
