ACCESSORY SUITES IN CANMORE: ISSUES & OPPORTUNITIES

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1 ACCESSORY SUITES IN CANMORE: ISSUES & OPPORTUNITIES MARCH 2015

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3 TABLE OF CONTENTS LIST OF ACRONYMS... II 1 EXECUTIVE SUMMARY INTRODUCTION OBJECTIVE DEFINITIONS BENEFITS REGULATORY FRAMEWORK ACCESSORY SUITES IN CANMORE MUNICIPAL POLICY AND BYLAW SUPPLY AND LOCATION DEMAND COMMUNITY PERSPECTIVES SUMMARY ACCESSORY SUITES IN OTHER ALBERTA MUNICIPALITIES CALGARY EDMONTON CAMROSE LACOMBE COCHRANE COMPARISON OF MUNICIPALITIES OPPORTUNITIES APPENDIX 1: SUPPLEMENTAL ALBERTA BUILDING AND FIRE CODE INFORMATION APPENDIX 2: MUNICIPAL POLICY REFERENCES TO ACCESSORY SUITES APPENDIX 3: MAP OF R1 AND R1A AREAS WHERE SUITES PROPOSED IN BYLAW (27) Z Table 1: Canmore Suite Permissions by Land Use District Table 2: Canmore General Regulations for Secondary Suites Table 3: Canmore General Regulations for Garden Suites Table 4: Canmore 2011 Census Counts and Location of Suites Table 5: Calgary - Suite Bylaws and Initiatives Table 6: Edmonton - Suite Bylaws and Initiatives Table 7: Camrose - Suite Bylaws and Initiatives Table 8: Lacombe Suite Bylaws and Initiatives Table 9: Cochrane - Suite Bylaws and Initiatives Table 10: Comparison of Suite Policies, Bylaws and Initiatives by Municipality Figure 1: Map of Canmore Land Use Districts where Suites are permitted Figure 2: Map of Canmore Land Use Districts where Suites allowed in existing SFD only Figure 3: Canmore Census Tract Map i

4 LIST OF ACRONYMS CCHC: CHAP: CMHC: CNIT: CSP: DC: LUB: LUD: MDP: MHR: NIMBY: SFD: SFD+: TPT: TOC: Canmore Community Housing Corporation Comprehensive Housing Action Plan Canada Mortgage and Housing Corporation Core Needs Income Threshold Community Sustainability Plan Direct Control District Land Use Bylaw Land Use District Municipal Development Plan Manufactured Home Family Residential District Not in my Backyard Single Family Detached home Single Family Detached Plus home Teepee Town Town of Canmore ii

5 1 EXECUTIVE SUMMARY Canmore has one of the highest costs of living in Alberta driven by high housing costs. A lack of diverse, appropriate and affordable housing options contributes to a gap between the cost of market housing and the price that residents and workers can afford to pay for housing. The Town of Canmore has long recognized the contribution of accessory suites as a supply of affordable rental units and in facilitating entry level housing ownership. The Town adopted zoning in the early 1990 s to allow suites in low-density residential subdivisions. More recently, it has taken a number of measures to open up more neighbourhoods to legal suites. Despite these efforts, illegal suites remain a persistent problem in some neighbourhoods, while legal suites remain largely vacant and underutilized in others. The objective of this report is to identify opportunities to expand the supply of legal suites in Canmore. It is organized into the following sections: Introduction: This section includes applicable definitions, identifies benefits of suites to tenants, owners and the community, and outlines the regulatory framework that governs the development of suites. Accessory Suites in Canmore: Background information on the context and experience in Canmore with respect to accessory suites is provided in this section, including applicable municipal policy and bylaws, an assessment of the supply and demand, and community perspectives, which serve to highlight relevant issues and barriers. Accessory Suites in Other Alberta Municipalities: This section examines policy, bylaw and targeted initiatives to facilitate and encourage accessory suites in the Alberta municipalities of Calgary, Edmonton, Camrose, Lacombe and Cochrane. Strategies generally fall into the following categories: land use bylaw amendments, illegal suite enforcement; grant programs; and information and education. Comparison of Municipalities: In this section, strategies to encourage accessory suite development in the five municipalities is compared with Canmore s approach. More specifically, this section compares permissions, built-form, sizes, parking, occupancy requirements, permit fees, enforcement and municipal assistance, specific to accessory suites. Opportunities: This section concludes the report, identifying six potential strategies to reduce barriers to and encourage the creation of safe and legal suites, and better align supply and demand in Canmore. The Town of Canmore is in the process of rewriting its Municipal Development Plan. The Town has the opportunity to review its policy, bylaws and initiatives and create a forward-looking and supportive policy framework to increase the supply of legal suites for the benefit of the community. Page 1

6 2 INTRODUCTION 2.1 Objective Canmore has one of the highest costs of living in Alberta driven by high housing costs. A lack of diverse, appropriate and affordable housing options contributes to a gap between the cost of market housing and the price that residents and workers can afford to pay for housing. The Town of Canmore has long recognized the contribution of accessory suites as a supply of affordable rental units and in facilitating entry level housing ownership. The Town adopted zoning in the early 1990 s to allow suites in low-density residential subdivisions. More recently, it has taken a number of measures to open up more neighbourhoods to legal suites. Despite these efforts, illegal suites remain a persistent problem in some neighbourhoods, while legal suites remain largely vacant and underutilized in others. The Canmore Community Housing Corporation (CCHC) is a municipal corporation that provides research and advice on housing policy, planning and development. The objective of this report is to identify opportunities to expand the supply of legal suites in Canmore based on an examination of the context and experience locally and in other Alberta communities. 2.2 Definitions Accessory Suites An accessory suite can be described as an additional self-contained dwelling unit which is subordinate to a principal dwelling. Accessory suites include a kitchen, bathroom, sleeping area and its own entrance, which provides separation and privacy between the accessory suite and the principal residence. Accessory suites may be rented out, but may not be subdivided, condominiumized or sold individually. Accessory suites generally exist in three forms: secondary suites, garden suites and garage suites. For the purpose of this report, the term accessory suites or suites is used to refer collectively to all suite types. Municipal definitions of each suite type may vary, but there is broad understanding as to what is understood by each term as outlined below. Secondary Suites The Canada Mortgage and Housing Corporation (CMHC) describes a secondary suite as a private, selfcontained unit within an existing dwelling. Secondary suites are also known as: second units, accessory apartments, in-law suites, nanny suites and basement apartments. A secondary suite typically has its own bathroom, kitchen, living and sleeping areas, but may share some facilities with the rest of the house. Shared facilities may include a yard, parking area, laundry, storage space, and sometimes a hallway. The majority of secondary suites are created through internal alterations to a basement, floor or attic. Most secondary suites are found in basements as these units are typically the easiest to develop and allow for the greatest degree of privacy and separation. Page 2

7 Garden Suites The CMHC describes a Garden Suite as a self-contained dwelling without a basement. They are most commonly installed in the rear or side yard of a lot with an existing, permanent, single-detached house. They are sometimes referred to as granny flats or granny suites even though occupancy is not typically restricted to a family member. Garage Suites A Garage Suite is a dwelling unit located above or attached to the side or rear of a detached garage, which is most often accessory to a single-detached house. It has separate cooking, sleeping and bathroom facilities. The entrance is either from a common indoor landing or directly from the exterior of the garage separate from the vehicle entrance. These suites are sometimes referred to as coach suites, carriage suites, or Fonzie suites. Legal Suite A suite that meets all municipal and provincial building and safety standards and is approved under development and/or building permit. Page 3

8 Illegal Suite A suite without authorization under a development permit and/or building permit. Legally Approved, Non-compliant Suite A suite that met all municipal and provincial building and safety standards when approved through a development and/or building permit at the time of construction, but as a result of changes to the building or fire code, the suite no longer meets minimum safety standards. 2.3 Benefits Secondary suites have a range of benefits for tenants, homeowners and the community: Tenant Benefits Affordability: Accessory suites increase rental supply, typically with affordable rental rates. Choice: Provides housing options in low-density neighbourhoods often with access to a yard. Proximity to services: Suites in existing neighbourhoods often benefit from access to existing schools, shopping, recreation and other services. Health & Safety: Legal and compliant suites ensure minimum health and safety standards are met. Security of tenure: Legal suites remove the risk of a tenancy being terminated due to municipal enforcement action. Regulation governs the rights and responsibilities of the tenant and landlord. Owner Benefits Mortgage Helper: Legal units provide an income stream recognized by lenders that enables homebuyers of limited income to purchase a home that they would otherwise not qualify to buy. The income tax implications of this rental income, however, may serve as a disincentive to having a legal suite. Aging in place and allowing families to stay together: Opportunity for seniors, children and other dependents to live independently within their own homes with the support of family or tenants living in the principal or accessory dwelling unit. Insurance: A legal suite allows owner to obtain adequate insurance for the tenanted suite. Property Value: Maintain or increase market value of a home. The costs associated with legalizing suites, however, may be a disincentive to owners. Costs include renovations to bring units up to building and safety standards and increased municipal taxes due to increased property values. Community and Municipal Benefits: Rental Supply: Increases supply of rental stock through the private market creating greater variety. Diversity: Increases socioeconomic diversity, inclusivity and stability of neighbourhoods. Densification: Enables low-impact densification while maintaining neighbourhood character and appearance, resulting in more efficient use of existing municipal infrastructure. If not managed properly, negative impacts on neighbourhood character, appearance, traffic and parking may arise. Page 4

9 Information: Legal suites increase data accuracy for decision making related to infrastructure and population needs. Revenue. Legal suites increase data accuracy which can lead to increased population-based government transfers and municipal revenues. 2.4 Regulatory Framework Municipal Authority Municipalities have the choice and authority to develop bylaws to allow accessory suites in their communities and decide where they may be located. Statutory plans allow municipal councils to establish general development policies for all or part of the municipality. The land use bylaw is the means by which municipalities regulate the use and intensity of development of parcels of land and determine the rules for community character such as appearance, parking, waste storage and access. The land use bylaw establishes development standards and divides the municipality into districts, prescribing permitted and discretionary uses for each district. It also provides for a system for issuing development and building permits. If suites are designated as a permitted use in a district, a Development Authority is obligated to approve the permit application if it conforms to the land use bylaw. There is no requirement to publish a notice in the newspaper or to circulate notice to adjacent landowners. The right to appeal is also limited. The applicant and/or any affected neighbour are able to appeal the decision only if the provisions of the land use bylaw were relaxed, varied or misinterpreted. If suites are designated as a discretionary use in a district, each permit application is evaluated on its individual merits by the Development Authority who is able to require more restrictive standards than those contained in the land use bylaw. The Development Authority will consider matters such as the arrangement of parking, the size of the lot, and whether a suite would be compatible with and complementary to the surrounding properties. There is a notice requirement, which may be posted on site, advertised in a newspaper or sent directly to adjacent landowners. Affected neighbours who object may appeal an approval to the Subdivision and Development Appeal Board. Time and resources required to process a permit application for a suite as a discretionary use are greater than when a suite is a permitted use. Once accessory suites have municipal approval, a municipality through a Building Safety Codes Officer applies provincial fire and building code standards. Provincial Authority The Province establishes safety standards for secondary suites as specified in sections 9.37 of the Alberta Building Code and 2.17 of the Alberta Fire Code. These requirements establish minimum standards to support an acceptable level of safety for persons and property. The current building and fire code requirements for secondary suites came into force on December 31, The Alberta Fire Code requirements apply to secondary suites built on or before December 31, The regulation has less restrictive requirements than the Alberta Building Code, recognizing certain challenges in altering older existing suites. Homeowners were responsible to ensure their suites, either legal or illegal, Page 5

10 were compliant with these standards before December 31, Legal suites that did not meet these standards by December 31, 2008 are termed legally approved, non-compliant suites. Although legal, they can present a safety risk to tenants should suites not meet current safety standards and the municipality has the authority to enforce compliance with provincial fire and building code standards. The Alberta Building Code requirements apply to new secondary suites built after December 31, 2006 and garden and garage suites. The Alberta Building Code also applies to the upgrade of an illegal suite in an existing dwelling after December 31, 2008, since these are viewed to be new suites. The municipality as the authority having jurisdiction, however, has the discretion to apply the Alberta Fire Code requirements if there is sufficient evidence that the suite was in place before the introduction of the Alberta Building Code standards on December 31, Where extensive changes are necessary to meet compliance standards, the Alberta Building Code requirements would apply. Additional detail on Alberta building and fire code requirements for suites are found in Appendix 1. Page 6

11 3 ACCESSORY SUITES IN CANMORE 3.1 Municipal Policy and Bylaw History The Town of Canmore has long recognized the contribution of accessory suites as a supply of affordable rental units and in facilitating entry level housing ownership. The Town adopted R1B zoning in the early 1990 s to allow suites in low-density residential subdivisions and has since taken a number of measures to encourage the creation of legal suites as presented below. Policy The 1998 Municipal Development Plan (MDP) is the statutory plan that establishes general development policies in Canmore. In the face of growing housing pressures, the MDP sought to encourage secondary suites in existing neighbourhoods with single-detached housing should the need arise due to high rental demand. It also contains mandatory requirements for entry level housing, specifically, single-detached dwellings with secondary suites, in new residential subdivisions. In 2008, the Town of Canmore created the Comprehensive Housing Action Plan (CHAP). This nonstatutory document built upon the 1998 MDP policy, recommending a range of housing policies and actions to address the community need for a broad continuum of housing. Recommendations included legislation to facilitate the creation of new suites, the legalization of existing illegal suites, and the amendment of regulations to allow suites in owner-occupied residences, in most, if not all, residential land use districts. The CHAP also informed the Community Sustainability Plan (CSP). The CSP was intended to replace the MDP in 2009 as Canmore s statutory land use policy framework. It retained policies to encourage accessory suites in existing communities. The CSP also included references to incentive programs, such as homeowner grants, tax deferrals, tax breaks and the modification of parking standards, to create suites that would fall under terms and conditions of the Town s Perpetually Affordable Housing (PAH) program. The CSP also encouraged accessory suites in new residential communities by requiring all new residential rezoning to be, at a minimum, a R1B land use district allowing single-family detached homes with secondary suites. The CSP was not approved. Instead, it was rescinded by council due to legal challenges unrelated to secondary suite policy. The policy and suite incentive programs referenced in the CSP, however, remain in the updated 2011 CHAP document. A new MDP is anticipated in 2015 and it is expected that encouraging accessory suites will remain an important policy goal. Specific references to accessory suites in the MDP, CHAP and CSP are found in Appendix 2. Bylaw Land use regulations pertaining to accessory suites in Canmore are contained in Land Use Bylaw (LUB). In 2010, a draft LUB amendment, Bylaw 27 (Z) 2008, proposed to implement recommendations of both the CHAP and the 1998 MDP to allow secondary suites as a discretionary use in all single family detached home R1 and R1A districts. Approximately 1,800 to 2,000 lots would have become eligible for Page 7

12 suites under these amendments. A map illustrating R1 and R1A districts impacted by the proposed bylaw can be found in Appendix 3. Bylaw 27(Z) 2008 did not proceed due to sentiments expressed during the public consultation process coupled with procedural challenges that emerged during the revision of the whole LUB. Instead, proposals were substantially changed and incorporated into the revision of the whole LUB adopted by Council in January Suites are now allowed in R1 districts where properties have both street and lane access, of which about lots met this requirement, and for the first time, garden and garage suites were allowed in R1 land use districts. In R1B land use districts, where single-family dwellings with suites are a permitted use, singlefamily dwellings without suites were changed from a permitted to discretionary use effectively strengthening the mandate for single-family detached plus dwellings in these districts. Since the 2012 LUB revisions, seven suites have been approved in R1 land use districts: 2 garage suites, 2 garden suites, 2 secondary suites, and the legalization of 1 existing suite. The 2 garage and 1 garden suite have not been completed at the time this report was completed Land Use Bylaw Definitions Section 16 of the LUB contains the following accessory suite definitions: Secondary Suite development consisting of an ancillary, self contained dwelling unit located in a structure in which the primary use is a single family dwelling unit. A secondary suite has an entrance separate from the entrance to the primary dwelling unit, either from a common indoor landing or directly from the exterior of the structure, and may be connected by an interior door directly connecting the primary dwelling unit to the secondary suite. Exterior access to the secondary suite is subordinate in both size and appearance to the access of the primary dwelling unit. This definition of secondary suite refers only to single-detached homes. It does not include manufactured homes or duplex, townhouse, row or apartment housing where the structure was initially designed for two or more dwellings. The Town of Canmore may use the term secondary suite in policy documents to refer to all types of accessory suites. Garden Suite a secondary dwelling unit detached from and located on the same site and serviced by the same utilities as a single-family detached principal dwelling unit. A Garden Suite may be attached to or be developed above a detached garage. This definition of garden suites refers to both garden suites and garage suites as defined earlier in this report (section 2.2). Page 8

13 Single-Family Detached Plus Dwelling a single detached building designed to contain one primary dwelling unit and one secondary suite, under one title, used exclusively for the residence of not more than one family per dwelling unit and where the primary dwelling unit and secondary suite may be connected by an interior door directly connecting the primary dwelling unit to the secondary suite. Exterior access to the secondary suite is subordinate in both size and appearance to the access of the primary dwelling unit. Although Canmore uses the term single-family detached to describe dwelling types in its land use bylaw, it is used interchangeably with single-detached dwelling for purposes of this report Land Use Districts and Accessory Suites Permissions to build accessory suites are under the authority of the municipality as outlined in section 2.4 of this report. Secondary, garden and garage suites may be listed as either a permitted or discretionary use, or not listed at all within a land use district as set out in the land use bylaw. Table 1 provides a summary of the permissions for single-family detached, single-family detached plus, secondary and garden (which include garage) suites in each residential land use district in Canmore As of January 2012, the Town of Canmore s LUB allows accessory suites of some form, as either a permitted or discretionary use, in the following land-use districts, identified on the map in Figure 1. R1 Residential Single-Family Districts (with road and lane access only) R1B Residential Single-Family Plus Districts R1B-E Residential Single-Family Detached Plus Entry-level District R1B-W Residential Single-Family Detached Plus Wide Lot District R1S Residential Single-Family Detached with Suites District STR-1 Silvertip Residential Single-Family and Two Unit District STR-2 Silvertip Comprehensive Residential District TPT-CR Teepee Town Comprehensive Redevelopment District Three Sisters Resorts DC District (Site 1A and Site 2A) Woodside Lane Residential Single-Family Detached Plus DC District (note: this district not included on map due to small area and lack of accessory suites) Accessory suites are also allowed as discretionary uses in existing single-detached dwellings in the following land use districts, as identified on the map in Figure 2. R2 R2A R4 Residential Family Two-unit district Residential Family Low Density District Residential Medium Density District Although secondary suites may be allowed in the land use districts listed above, the potential of belowgrade (basement) secondary suites in certain areas may be limited due to the high groundwater table. These areas include Town Centre, South Canmore, Teepee Town, Fairholme and Larch neighbourhoods, as indicated in Figures 1 and 2. Since the 1980 s, new developments in these areas are required to stay above the 1:100 year groundwater level pursuant to municipal engineering and construction guidelines limiting basement suite development. Page 9

14 Table 1: Canmore Suite Permissions by Land Use District LAND USE DISTRICT DESCRIPTION SINGLE FAMILY DETACHED SINGLE FAMILY DETACHED PLUS SECONDARY SUITES GARDEN SUITES includes Garage Suites R1 Residential Single Family Detached District Permitted Discretionary* Discretionary* Discretionary* R1A Residential Single Family Detached Small Lot District Permitted Not Permitted Not Permitted Not Permitted R1N M Moraine Road Single Family Detached Narrow lot District Permitted Not Permitted Not Permitted Not Permitted R1B Residential Single Family Detached Plus District Discretionary Permitted Permitted** Not Permitted R1BE Residential Single Family Detached Plus Entry level District Not Permitted Permitted Not Permitted Not Permitted R1B W Residential Single Family Detached Plus Wide Lot District Permitted Permitted Permitted** Not Permitted R1S Residential Single Family Detached with Suites District Permitted Permitted Discretionary** Not Permitted R2 Residential Family Two unit District Discretionary*** Discretionary Discretionary** Discretionary*** R2A Residential Family Low Density District Not Permitted Discretionary Discretionary** Discretionary*** R3 Residential Comprehensive Multiple unit District Not Permitted Not Permitted Not Permitted Not Permitted R3SC Residential Comprehensive Multiple unit Stewart Creek Not Permitted Not Permitted Not Permitted Not Permitted R3SC1 Residential Comprehensive Multiple unit Stewart Creek Not Permitted Not Permitted Not Permitted Not Permitted R4 Residential Medium Density District Discretionary*** Not Permitted Discretionary*** Discretionary*** R5 Residential Apartment District Not Permitted Not Permitted Not Permitted Not Permitted MHP Manufactured Home Park Family Residential District Not Permitted Not Permitted Not Permitted Not Permitted MHR Manufactured Home Family Residential District Discretionary Not Permitted Not Permitted Not Permitted STR 1 Silvertip Residential Single Family and Two Unit District Permitted Permitted Discretionary** Not Permitted STR 2 Silvertip Comprehensive Residential District Permitted Permitted Discretionary** Not Permitted TPT CR Teepee Town Comprehensive Redevelopment District Permitted Permitted Discretionary** Discretionary** 31 (Z) 2006 Woodside Lane Residential Single Family Detached Plus DC Permitted Permitted Permitted** Not Permitted Site 1A + 2A [18(Z)2002DC] Three Sisters Resort Permitted Permitted Not Permitted Not Permitted *On lots with access from both a street and a lane. **Associated with Single Family Detached Dwellings *** Associated with Existing Single Family Detached Dwelling Units only Page 10

15 Figure 1: Map of Canmore Land Use Districts where Suites are permitted Area of potentially high groundwater *Only includes R1 areas with laneways for access Page 11

16 Figure 2: Map of Canmore Land Use Districts where Suites allowed in existing SFD only Area of potentially high groundwater It is Page 12

17 3.1.4 General Regulations Secondary Suites Section 4.5 of Land Use Bylaw contains general regulations governing secondary suites. An overview of these regulations is found in Table, including references to the relevant LUB provisions. Table 2: Canmore General Regulations for Secondary Suites REGULATION Municipal approval Use restrictions Occupancy Size restrictions Safety codes Parking Built form DETAIL A secondary suite in a SFD+ district requires a development permit unless constructed at the same time as the principal dwelling. The Development Authority shall take into consideration the potential effect of the development on the privacy of adjacent properties in regard to such potential. (LUB ) Subdivision of secondary suites from the primary dwelling is prohibited. ( ) Secondary suites are approved and must continue to function as dwelling units which are associated with, and ancillary to, the single family dwelling structure in which they are contained. ( ) There shall be no more than one secondary suite developed within a primary dwelling unit. ( ) The resident owner shall submit and sign a statutory declaration stating that he/she is the principal resident of the primary dwelling unit and occupancy of the principal dwelling by the owner shall be a condition of a development permit. ( ) The number of unrelated persons occupying a secondary suite shall not exceed two unless such persons constitute a family in accordance with TOC definitions. ( ) The floor area occupied by a secondary suite shall not exceed 40% of the total floor area of the building within which it is contained or 80.0 m2, whichever is less, except where the suite occupies a basement within a one storey single detached dwelling where the suite may occupy 50% of the building within which it is contained regardless of the floor area. ( ) A secondary suite shall comply with all relevant requirements of the Alberta Building Code and the Alberta Fire Code. ( ) Parking shall be provided in a manner to retain the appearance of the existing single family use. A minimum of one on site parking space, with direct access to a public street or lane, shall be provided for a secondary suite. Where a lane exists, parking for a suite shall be provided from the lane. ( ) A secondary suite is a self contained dwelling unit located in a structure in which the primary use is a single family detached dwelling unit. ( ) The secondary suite shall have an entrance separate from the entrance to the primary dwelling unit, either from a common indoor landing or directly from the exterior of the structure. An exterior access to the secondary suite shall be subordinate in both size and appearance to the access of the primary dwelling unit and shall not be located on the front elevation of the house. ( ) Page 13

18 Additional regulations apply to R1 areas, including: The requirement for an annual statutory declaration with respect to occupancy of the principal dwelling by the owner. A stipulation whereby a development permit can be revoked should the use of a secondary suite result in negative impacts on adjacent properties due to noise, parking or other nuisance issues, or where the conditions of approval for the development permit do not continue to be met. A landscaping requirement for 60% of the area between the primary residence and front property line to be landscaped in vegetated or soft landscaping to the satisfaction of the development authority. A requirement for the additional parking stall associated with the secondary suite to have access from a lane, to be screened from adjoining residential properties to the satisfaction of the development authority, and to be clearly identified and distinct from other parking which may be provided from the lane and shall be of adequate dimensions. Garden and Garage Suites Section 4.6 of LUB contains general regulations governing garden suites, which include garage suites. An overview is contained in Table 3 below, including a reference to the specific paragraph in the LUB. Table 3: Canmore General Regulations for Garden Suites REGULATION Municipal approval Use restrictions Occupancy Size restrictions DETAIL A garden suite requires a development permit. ( ) Where garden suites are approved they must continue to function as dwelling units which are associated with, and ancillary to, the primary dwelling unit on the site. ( ) The subdivision of garden suites from the primary parcel is prohibited ( ) The resident owner shall submit and sign a statutory declaration stating that he/she is the principal resident of one of the approved units on the property and occupancy of this unit by the owner shall be a condition of a development permit. Should the use of a garden suite result in negative impacts on adjacent properties due to noise, off site parking or other nuisance issues, an Order may be issued and the permit for the suite revoked. The number of unrelated persons occupying a garden suite shall not exceed two, unless such persons constitute a family in accordance with TOC definitions. ( ) The minimum lot area shall be 230.0m² for lots with a laneway except within R1 Districts where the minimum lot area shall be 460m². The minimum lot area for lots without a laneway is 460m². ( ). The minimum lot width shall be 12.0m. The minimum side yard shall be the same as the primary dwelling requirement for the District. On a corner site where a garden suite abuts a flanking public roadway other than a lane, the required side yard shall not be less than that provided for the principal structure. ( ) Page 14

19 Safety codes Parking Built form: The minimum rear yard setback shall be 2.0m when the rear yard abuts a lane. ( ) The garden suite shall be separated from the principal dwelling unit by a minimum of 4.0m and a minimum of 1.5m from all other buildings. ( ) The maximum site coverage for garden suites shall be calculated as for accessory buildings in residential districts. The Development Authority may allow for a variance to the lot coverage for a garden suite as long as the total lot coverage for all buildings on the lot, including the primary dwelling unit, does not exceed 40%. ( ) The maximum floor area of a garden suite shall be 50.0m² ( ). Garden suites shall not be located in the front yard. ( ) A garden suite shall comply with all relevant requirements of the Alberta Building Code. A minimum of one on site parking space shall be provided for a garden suite. Where there is direct access to a lane, parking shall be from the lane. ( ) Specific design requirements relating to height, design, windows, amenity space, and landscaping are outlined in section of LUB Municipal Enforcement Dwellings suspected of containing an illegal suite may be inspected on the basis of a complaint made to Bylaw Enforcement. Parking is a primary basis of complaints, specifically the persistent lack of available on-street parking, blocked sight lines at driveway entrances, and residents parking in front of neighbours properties. Tenants rarely make complaints due to the fear of losing their rental suite. Upon receiving a complaint, homeowners are contacted and an inspection is requested. If an illegal suite is found, the owner is required to remove any separating doors, upper kitchen cupboards, and 220 volt electrical wiring. Anecdotal reports suggest that homeowners often disguise their illegal suite prior to inspection by temporarily removing evidence of kitchen equipment and claiming the space is rented out sharing the facilities of the primary dwelling. It is also suggested that closed illegal suites are later rented out simply as a space shared with the primary dwelling. This is permitted. 3.2 Supply and Location There is no definitive source of information on Canmore s accessory suite stock and its occupancy. Town Planning staff have suggested that manual counts would be required to accurately establish the number of legal suites. That is beyond the scope of this report. Instead, 2013 civic address mapping data which assigns a B address to legal suites was used to estimate that 163 legal suites were located throughout Canmore. The total number of suites, legal and illegal, is estimated to be significantly higher. The 2011 Census counted 334 suites, a third of which were vacant, while a 2003 housing study estimated that there were approximately 500 secondary suites in Canmore, the majority of which were illegal. Page 15

20 Census Data Municipal census data provides a general indication of the number and location of accessory suites, but suites are generally under-reported for the following reasons: Participation is not mandatory for a municipal census. It is understood that residents may not report occupancy of illegal suites for fear of bylaw enforcement. Illegal secondary suites in the community do not have a civic address and it can be impossible to determine if a suite exists based on the appearance of the primary dwelling unit. This presents significant difficulty to census enumerators attempting to survey every dwelling. Respondents may misclassify their dwelling type. Census contractors often require third party assistance from neighbours, property managers, and realtors to complete a census form. Census data is also limited in that it does not distinguish between legal and illegal suites. Table 4 includes census data on the number and location of suites compared with the estimated number of legal suites in each area based on civic mapping data. It suggests that accessory suites are found throughout Canmore with the greatest numbers in Three Sisters, The Avens, Peaks of Grassi, and Canyon/ Ridge Road areas. It also shows that illegal suites appear to be present in almost all neighbourhoods, with higher numbers in The Avens, Canyon/Ridge Roads, Peaks of Grassi, Cougar Creek/Point, Teepee Town, Grotto/Boulder and Three Sisters Dr/Pkwy and Rundle Ridge areas. Table 4: Canmore 2011 Census Counts and Location of Suites LOCATION: Census Tract* Counted Suites Estimated Number of Legal Suites Estimated Number of Illegal Suites Illegal Suites as % of Counted Suites Three Sisters 18e % The Avens % Peaks of Grassi % Canyon/Ridge Roads % Teepee Town 12b % Cougar Creek/Point 13a,13b % Three Sisters Dr/ Pkwy, Rundle Ridge 1a, 1b, % Grotto/Boulder % Town Centre 4, % South Canmore % Fairholme/Aspen Park 7a,7b, % Lincoln Park/Bow Valley Trail 11,12a % Larch 8, % Prospect Heights % Eagle Terrace 16b Other TOTAL % * see Figure 3 Census Tract Map Page 16

21 Figure 3: Canmore Census Tract Map Page 17

22 Housing Studies In 2003, the Town of Canmore commissioned a study by City Spaces titled Affordable & Entry Level Housing Study. The report estimated that there were approximately 500 secondary suites in Canmore, most of which were illegal. It reported that the Riverstone Road R1B subdivision in The Avens was successful at creating entry-level housing for residents through the provision of secondary suites, while the Manufactured Home Family Residential District (MHR) in Grotto/Boulder and the Peaks of Grassi had a high level of illegal suites. The study also reported that secondary suites have contributed to affordability, but also contributed to increased traffic and parking congestion over time in certain subdivisions, particularly om the Peaks of Grassi and Moraine Road areas, due to the additional occupancy in secondary suites, both legal and illegal. Rental listings tracked by CCHC can also give an indication as to the location of suites. In the six month period of March to August 2014, CCHC counted 47 listings for basement/lower suites. In listings where postal codes were available, the majority of advertisements were for basement secondary suites in locations that correspond with land use districts where suites are permitted. However, a number of advertised suites were likely illegal due to zoning non-compliance. These suites were primarily located in the following areas: R1 areas without lane access in Cougar Creek and Cougar Point R1A, Moraine Road Narrow Lot District (R1-NM), and R3 townhouses at Glacier Drive in The Avens R1 area of Larch without lane access MHR district in Grotto 3.3 Demand Conversations with a number of realtors in Canmore suggest that the strongest demand for singledetached dwellings with legal suites comes primarily from the young family, entry level, move-up and increasingly multi-generational homebuyers. There is also a demand for legal suites from homeowners seeking to maximize the resale value of their home before downsizing. The prospective buyers of these homes are looking to purchase properties within the $500,000 to $800,000 price range. Homes priced above $800,000 were less likely to attract buyers wanting a secondary suite. Rising land and construction costs might mean that it will not be feasible to construct and sell a new single family detached plus dwelling at a price point within the reach of homebuyers looking for the rental income or other benefits of suite. Existing single family detached housing stock in established neighbourhoods present the most feasible opportunities to create accessory suites due to the price points of these homes, particularly the Peaks of Grassi, Aspen Park, Larch/Fairholme, and R1/R1A areas of Cougar Creek/Point. These neighbourhoods also correspond with areas that residents have expressed strong preferences in which to rent. Unfortunately, these areas have limited opportunities for suite development due to zoning or groundwater concerns. Buyers in new residential areas including Three Sisters and Silvertip have not shown a strong demand for secondary suites to be used for rental purposes. Evidence suggests that suites in R1BE and R1BW areas of Three Sisters are being used as guest rooms, recreational rooms or home offices rather than as rental units. This is supported by census data that shows a high vacancy rate for accessory suites, coupled with Page 18

23 higher levels of non-permanent residents and of residents who work from home in that area. These areas are also cited as being among the least preferred areas to rent, largely due to distance from services. This could change, however, with the introduction of public transit within Canmore, continuing low rental vacancy rates, and as new residential areas grow. 3.4 Community Perspectives Community response to policies to expand accessory suites has been mixed. During Town engagement on the 2012 LUB amendment to allow secondary suites as a discretionary use in all single family detached homes in R1 and R1A districts, there was adamant opposition to suites by some, while others supported suites with limits that address resident concerns and expressed interest in having a suite in their home in the future. Primary concerns expressed by those in opposition were: Lack of enforcement of illegal suites and desire to address this issue before new suites are built, particularly in the Peaks of Grassi area. Decrease in property values due to retroactive zoning. Impact on lifestyle and unfairness to people who purchased in a low density neighbourhood. Surplus of rental units following the global recession of 2008 so no need to allow secondary suites in single family neighbourhoods. Negative characterization of renters, suggesting they are not as community minded. Increased traffic and parking which would exacerbate existing problems. High costs to upgrade, legalize or create a suite, including high development and building permit fees. Negative impact on community, neighbourhood character and neighbour relations. These concerns, valid or not, influenced the decision that accessory suites would only be allowed as a discretionary use in R1 land use districts, and only on properties with access to both a lane and a street in view of traffic and congestion concerns. The decision was also influenced by the fact that at the time, there was no urgency to create rental housing as Canmore had experienced several years of depressed housing prices and high rental vacancies following the 2008 global recession. Canmore s housing and rental market has changed significantly since By the spring of 2014, rental rates had increased rapidly, employers were talking of a housing crisis, and the CMHC was reporting a 0% rental vacancy rate. It is against this backdrop that the Town initiated a discussion on affordability as part of its community engagement strategy in rewriting the MDP. This engagement process saw strong support for expanding accessory suites throughout Canmore and legalizing existing suites. There were suggestions that the municipality should take the 2012 bylaw amendments further to allow accessory suites in more land use districts and to change other restrictions such as parking and owner-occupancy requirements. It was also suggested that the municipality implement initiatives to reduce costs of providing suites through grant programs or assisting in obtaining group rates for construction or servicing costs. There was also support for the municipality to take a leadership role and stand up to NIMBY for the long-term benefit of the community. Page 19

24 3.5 Summary Zoning adopted in the early 1990 s in Canyon and Ridge Roads, Riverstone Road in The Avens, and in the Peaks of Grassi, has generally been regarded as successful in providing affordable rental and entry level ownership housing options despite ongoing challenges noted with illegal suites. Later requirements for suites in new residential subdivisions, however, appear to have been less successful at providing affordable housing and rental units. Evidence suggests that suites in R1BE and R1BW areas of Three Sisters are not being used as rental suites. Instead, they are used as guest rooms, recreational rooms or home offices. This is supported by census data that shows a high vacancy rate for accessory suites, coupled with higher levels of nonpermanent residents and of residents who work from home in that area. It is also believed that a small number of single-family detached plus dwellings are being used as vacation rental properties. Suites associated with single-family detached plus dwellings in R1S areas of Eagle Terrace may similarly be underused as rental dwelling units. Illegal suites are present throughout Canmore. They are in land use districts where they are permitted and in those where they are not. They are primarily located in established neighbourhoods and often in areas where the Town has aimed to diversify the types and sizes of housing, provide smaller lots, and be flexible with zoning. Illegal suites also exist within building types which do not allow suites, such as manufactured homes in MHR districts, duplex buildings in R2 districts, and townhouse buildings in R3 districts. Secondary suites are also present in areas where a high groundwater table prohibits below grade living space. Low rental vacancy rates, non-enforcement of illegal suites, and disincentives to legalize a suite may indicate that the number of illegal suites may have even increased beyond previous estimates. There could be between 500 and 600 secondary suites in Canmore representing between 20% and 25% of Canmore s rental housing stock, most of which are illegal. The prevalence of illegal suites and legal but non-compliant suites, is a significant tenant health and safety issue. The lack of oversight and enforcement is a concern as the impact on local neighbourhoods may not be adequately addressed. Lower rental vacancy rates and widely publicized employee housing challenges amongst Canmore businesses have brought the need for a wide variety of affordable housing alternatives to a sharp focus. Community perspectives towards accessory suites may be shifting with a higher level of support evident in recent community engagement exercises. Page 20

25 4 ACCESSORY SUITES IN OTHER ALBERTA MUNICIPALITIES A number of municipalities in Alberta have implemented policy, bylaw and targeted initiatives to facilitate and encourage accessory suites as a strategy to increase affordable housing options. This section contains a review of five Alberta municipalities which have undertaken different strategies: Calgary, Edmonton, Camrose, Lacombe and Cochrane. Strategies generally fall into the following categories: land use bylaw amendments; illegal suite enforcement; grant programs; and information and education initiatives. Summary tables of land use bylaws and initiatives related to the provision of accessory suites for each community are found at the end of this section. 4.1 Calgary Community Overview The City of Calgary, population 1.2 million, has experienced the second highest population growth of any metropolitan region in Canada in recent years. Rapid in-migration tied to the strength of oil and gas industry activity, a strong financial services sector and high-income employment opportunities has led to extremely low rental vacancy rates, rising rents and housing prices, and one of the highest levels of homelessness in the country. It is estimated that between 50,000 and 80,000 illegal suites exist across the city. The provision of suites is a highly contentious and politicized issue due to the lack of affordable housing and neighbourhood opposition. Land Use Bylaw Amendments The City of Calgary allows secondary suites, garage suites and garden suites in select land use districts containing single family dwellings. Specific parcel size requirements limit the eligibility of many properties in low density areas. The majority of low density zoning in Calgary is in R1, R-C1, R-C1L and R-C2 land use districts. In R1, R-C1, and R-C1L (low density, single family detached) districts a land use amendment is required for suites to be listed as a use. If a land use amendment is successful, an applicant can apply for a secondary suite. This process typically takes three to six months. The City recently removed the $5,000 application fee to seek a land use amendment for a secondary suite, but the process is viewed as arbitrary and time consuming by both Council and applicants. Secondary suites are a permitted use in R2 (Residential One and Two dwelling districts), while garden and garage suites are discretionary uses. The City also recently introduced the R-CG zoning for gradeorientated infill developments. This land use district allows secondary, garden and garage suites in combination with rowhouse, semi-detached and single-detached dwellings. There is no requirement for a parking stall for small (under 45m²) accessory suites in this district. This reflects a low rate of car ownership for occupants of small rental suites and facilitates adaptable housing on narrower parcels that may lack the area required for additional parking. Illegal Suite Enforcement Calgary takes a proactive approach to illegal suite enforcement. Inspectors order the closure of hundreds of accessory suites every year due to zoning and building code non-compliance. In the past the City has taken a zero-tolerance approach to illegal suites, focusing on closing all illegal suites based on complaints to bylaw enforcement authorities. More recently, it has been suggested that inspectors focus on safety non- Page 21

26 compliance issues and occasionally turn a blind eye to some suites which are non-compliant with zoning regulations. Removal of development permit and land use amendment application fees aims to encourage homeowners to seek the correct permissions and/or spot rezoning to bring a suite into compliance. Grant Program In 2009, the City of Calgary launched a secondary suites grant pilot program. Grants of up to $25,000 were provided to homeowners, which could not exceed 70% of the total cost to develop a secondary suite or to bring an existing suite up to code. Homeowners were required to live in the primary dwelling and the new suite had to be available to rent for five years at no more than the average market rental price based on CMHC statistics. Grant recipients were required to provide lease information annually to show that the suite was available for rent at an appropriate rate. Information and Education The City hosted monthly secondary suite grant pre-application workshops to provide applicants with detailed information and access to individuals to answer questions relating to the land use bylaw, building codes and the grant program. The City has also produced a number of guidance pamphlets for homeowners and held community information sessions. Detailed guidance is also available on the City`s website, including details on how to apply for grant funding. Results Accessory suites remain an ongoing challenge in Calgary. The reduction of application and land use amendment fees and full subscription of the secondary suite grant program have been viewed as successes. To date, the program has provided almost $6 million in grant funding for the development of 240 suites. There are also proposals for secondary suites to be allowed in all in inner city wards and within fixed distances from Iight rail and bus transit stops. 4.2 Edmonton Community Overview Edmonton has the fastest growing population of any metropolitan area in Canada and has experienced a population increase of over 60,000 in the past two years to reach a population of 877,926. Rental vacancy rates of 1.4%, similar to Calgary, were reported in the CMHC Spring 2014 rental market survey. Land Use Bylaw Amendments The City of Edmonton has one of the most permissive approaches to accessory suite provision developed through incremental bylaw amendments. The City of Edmonton changed its land use bylaw in two phases to remove many restrictions related to accessory suites. Phase one in 2007 saw secondary suites added as a permitted use in a number of land use districts containing single-detached dwellings. Restrictions on where suites are located were reduced in some districts and removed in others, minimum lot size requirements were reduced, while minimum and maximum suite sizes were established. Phase two in 2009 expanded the opportunity for secondary suites, modified requirements for garage suites, and introduced the opportunity for garden suites. Secondary suites were changed to being a permitted use Page 22

27 in all low-density residential zones and a discretionary use in medium-density zones with single-detached dwellings, while many of restrictions on location were removed. Garden and garage suites are currently allowed on lots which abut a service road, selected commercial service areas, apartment housing or a public park, and on corner lots. Current proposals are to remove these restrictions and to reduce height requirements for these suite types. The City of Edmonton estimated that the second round of bylaw amendments would mean that approximately 130,000 lots may be eligible for secondary suite development with between 10% and 20% of eligible lots possibly containing a secondary suite over time. Illegal Suite Enforcement The City increased its enforcement action on illegal suites during the second round of amendments to the LUB. The introduction of the Cornerstones Grant Program (see below) to coincide with reduced locational restrictions and enforcement action on illegal suites added incentives for owners to obtain development and building permits resulting in higher rates of compliance with Alberta Building and Fire Codes. The City of Edmonton continues to allow illegal suites to be upgraded in existing dwellings under the Alberta Fire Code requirements when there is evidence that the suite existed prior to Alberta building code changes in Grant Programs The City of Edmonton s Cornerstones I Program provided grants between 2006 and 2011 of up to $24,000 to homeowners to upgrade an existing suite or add a new suite to existing homes. Grants could not exceed 75% of the total costs. In return, the homeowner was required to rent the secondary suite to a household who earns less than the median income for their household size in Edmonton, and for a rent that did not exceed 85% of the CMHC average market rent in Edmonton for a similar sized unit. These requirements were for a five year period. Funding for this program came from municipal, provincial and CMHC sources and resulted in 553 secondary suites being created or upgraded. In 2012, the City of Edmonton introduced Cornerstones II: Edmonton's Plan for Affordable Housing ( ), a five-year plan dedicated to increasing the supply and improving the condition of affordable housing. This plan includes a renewed funding commitment of $3 million for the secondary suites grant program to help upgrade and create an additional 450 secondary suites. Grants were reduced to a maximum of $20,000 per secondary suite and maximum of 50% of eligible construction costs. Applicants were required to rent the suite to a household earning less than the maximum income assigned for the housing size. If a suite is already rented out at the time of application, the existing tenant, regardless of income, is permitted to remain in the suite. The homeowner must maintain tenancy records for the term of the operating agreement, and make them available at any time the City requests to see them. A homeowner who breaches the terms of the signed operating agreement must repay the entire grant in full. The operating agreement was originally for ten years, but subsequently rolled back to a five year term. Information and Education Land use bylaw changes and the grant programs have been supported by an educational campaign including the production of how to guidance pamphlets and a guidance resource website. Page 23

28 Results Land use bylaw amendments successfully opened up more neighbourhoods to accessory suites. In addition, the Secondary Suites Cornerstones Grant Program is viewed as the one of the most successful affordable housing initiatives which the City has undertaken resulting in the extension of funding to 2016 to encourage further legal suite creation. 4.3 Camrose Community Overview The City of Camrose, population 18,069, is located approximately 90km southeast of Edmonton. It has experienced strong economic growth over the last decade closely tied to surrounding agricultural activity, post-secondary educational institutions, proximity to oil and gas industries and its position as regional retail centre. Rental vacancy rates have fluctuated from less than 1% in 2009 to 3.2% in 2014 related to cyclical oil and gas activities. The City has identified a lack of affordable housing for elderly, low income, and postsecondary students as the most significant housing concerns in the city. Land Use Bylaw Amendments Camrose defines a secondary suite as a second self-contained dwelling unit within a single family, dwelling, where both dwelling units are registered under the same land title. The City introduced bylaw amendments in July 2008 to allow secondary suites in the majority of its land use districts with the exception of narrow lot properties. Garden and garage suites are not currently permitted. Properties with legal suites are charged a minor additional utility fee for garbage pick-up. Illegal Suite Enforcement Program Planning staff indicated that illegal suites pose a continuous challenge for the City, particularly those used as student housing. Staff have indicated that many owners are deterred by the expense associated with bringing a suite into compliance with the Alberta Building Code. Efforts to contact home owners with known illegal suites often go ignored. The enforcement of existing illegal suites is a problem that the City cannot currently facilitate without additional resources. Grant Program A secondary suite grant program was introduced in 2009 using $150,000 of funding from the Government of Alberta s Municipal Sustainability Housing and Capital Enhancement Initiative. The grant program was used to create rental suites in new and existing dwellings, and to upgrade existing secondary suites to comply with provincial building and fire codes. Grants cover up to 70% of construction costs to a maximum limit of $15,000, and an approved development permit application is required. An operational agreement for five years requires the suite to be rented at below market rates for Camrose. There are no tenant income restrictions. To date, the City had given funding to 14 recipients for a mix of new suite construction and renovation of existing suites. Tenants are required to sign an affidavit annually verifying their rent and duration of tenancy. Under the terms of the agreement, a portion of the grant must be returned if the property is sold or if the suite remains vacant for a period of more than six months. Funding remains available for one more applicant. Page 24

29 Information and Education The Town produced a guidance pamphlet and held information sessions to support the secondary suite grant program. Results The grant program is generally viewed as being successful by planning and development staff. With funding used for both new suite construction and the renovation of existing illegal suites, the result has been additional rental stock and the upgrade of existing stock to meet current safety standards. Illegal suites, however, remain a persistent problem for the City. 4.4 Lacombe Community Overview The City of Lacombe is located in central Alberta approximately 20 km north of Red Deer. In 2014, its population was reported to be 12,728, having grown 3% annually since Over the last decade, it experienced strong economic growth stemming from agricultural and oil and gas related industries, significant in-migration, low rental vacancy rates and an acute lack of affordable housing. Land Use Bylaw Amendments Lacombe defines a secondary suite as a separate and subordinate dwelling unit located on single-family residential parcel designating it as a discretionary use. Land use bylaw amendments allow accessory suites as a discretionary use in all land use districts where single detached dwellings exist with the exception of narrow lot properties. Lots without lane access can have suites if specific parking requirements are met. The number of suites allowed in a given area is capped. The city is divided into blocks of 20 to 40 houses with 10% of the housing on each block allowed to accommodate suites. Neighbouring property owners have expressed concerns about street parking, privacy and respect for private property. However, if a suite meets the land use bylaw requirements and is within the 10% per block requirement, it is typically approved by the Municipal Planning Commission. Illegal Suite Enforcement The illegal suite enforcement program was developed in Illegal suites are primarily identified on a neighbour complaint basis. The City sends out enforcement letters requiring the owner to contact the Planning and Development department. City staff inspect the suite to determine if there is a suite. The determining factor is the existence of basement stove facilities. If it is determined that there is a suite, the owner is required to legalize it through the proper approval and permitting process, or pull an electrical permit to remove the stove plug from the basement. The homeowner, however, may continue to rent out the space but without stove plug facilities. Grant Program The Secondary Suite Initiative Grant Program for homeowners was funded with $425,000 from the provincial Municipal Sustainability Housing and Capital Enhancement Initiative (2007/08). It provided up to $15,000 for the upgrade of existing suites, $10,000 for new suites in existing structures, and $7,000 for new suites in new structures. Grants were distributed on a first-come first-served basis and subject to rental rate Page 25

30 limits and occupant eligibility criteria. Rent could not exceed 85% of the average market rate and the occupants income must be within Core Need Income Threshold (CNIT) levels for Lacombe as determined annually by CMHC. An operational agreement required the suite to be rented under these conditions for a period of five years. The applicant is responsible for ensuring that a tenant affidavit is submitted to the City annually stating the tenant s rent, length of tenancy and annual income. Information and Education The City of Lacombe provides guidance on its website and has created educational pamphlets to answer frequently asked questions about secondary suites bylaws and the grant program. The City of Lacombe also received a $3,000 grant from the CMHC s Affordability and Choice Today (ACT) program to hold two open houses and undertake a survey to educate the community on the positive impacts of accessory suites. Results The program that works with homeowners to bring illegal and non-compliant suites up to code and is generally regarded as being successful. Illegal suites have been shut down where owners have faced excessive costs to bring suites up to code and when the 10% threshold for legal suites within a block has been exceeded. Uptake on the grant program has been very low, with only two applications received since Despite the lack of success of the incentive program, it is estimated that 10 legal secondary suites are built every year. Short-term priorities are to expand the permitted use of accessory suites to all R1 zones in existing and new developments, and reducing parking requirements in order to increase the range of housing choices. 4.5 Cochrane Community Overview The Town of Cochrane has seen rapid growth over the last decade tied to Calgary s growth and the community s desirable location in the foothills. This growth has caused significant housing pressures including low rental vacancy rates, rising housing prices and a lack of affordable housing. The population of Cochrane reached 20,708 in 2014, an increase of about 10% since The rental vacancy rate is understood to be extremely low although town specific data is not available. Land Use Bylaw Amendments The Town of Cochrane defines an accessory suite as a self-contained dwelling located within a building on a residential lot. This definition encompasses secondary, garden and garage suites. The land use bylaw encourages accessory suite development by allowing suites as a discretionary use in all residential districts. In contrast to many other Albertan municipalities, accessory suites are allowed in new subdivisions containing semi-detached and duplex dwellings (zoned R2 in the land use bylaw) as well as semi-detached and duplex dwellings in existing neighbourhoods (zoned R2X in the land use bylaw). Page 26

31 Illegal Suite Enforcement Punitive enforcement measures are used to deal with illegal suites. Town staff indicated that while they do not have the resources to police illegal suites, a number of measures are taken upon receiving a complaint. The Town first invites an application for a development permit. If a development permit application is not received, a stop order is issued. Illegal suite owners face a doubling of development permit application fees if they wish to legalise their suite. Planning staff have indicated that this has not deterred applicants who usually want to bring their suites up to code rather than face closure. Grant Programs The Town has not implemented grant programs. Information and Education The Town has held community information sessions instructing homeowners how to develop an accessory suite and addressing common homeowner concerns arising from their development. An accompanying guidance pamphlet was also produced. Results Accessory suites are approved on a first-come, first-served basis to a maximum of 10% of the lots in a neighbourhood. The most common reason for the denial of application is that the number of suites have exceeded the allotment for the neighbourhood. There are currently 70 approved accessory suites. Most of these were built in the last 10 years as the affordable housing need became more acute, attitudes changed, and new subdivisions better suited to accommodating suites were developed. Page 27

32 Table 5: Calgary - Suite Bylaws and Initiatives LAND USE DISTRICT PERMISSION SUITE TYPE MUNICIPAL ASSISTANCE RC1L / RC1L(s) RC1 / RC1(s) R1 / R1(s) Land use resignation required for these LUDs RC1N R1N RC2 R2 R2M R-CG provision for suites in Semi-Detached, Single Detached, Rowhouse Dwellings REGULATIONS DETAIL Permitted (P) Discretionary (D) Discretionary Permitted Discretionary Permitted* Discretionary *where one main residential dwelling is on a parcel Permitted Discretionary Secondary (P) Garden, Garage (D) Secondary Garden, Garage Secondary (P) Garden, Garage (D) Secondary(P) Garden, Garage (D) Secondary (P) Garden, Garage (D) Land Use Bylaw Amendment Removal of Development Permit and land use amendment application fees. Illegal Suite Enforcement Grant Program for new or the upgrade of an existing suite: Max: $25,000 or 70% of costs 5 year operating agreement Owner occupancy requirement Rent average market rent Tenant income: no restriction Information and Education Grant Information Sessions Step-by-step guidance pamphlets Website guidance Workshops Municipal approval & safety codes Use restrictions Occupancy Must conform to Zoning Bylaw and the Alberta Building and Fire Code. Suite must be secondary to the main residential use on the parcel. There must not be more than one Secondary Suite or Backyard Suite (same as garden/garage suite) located on a parcel. None Size restrictions Maximum floor area of a secondary suite, detached garden suite, or detached garage suite is of 70 sq. m may be relaxed by the development authority by a maximum of 10%. Parking One on-site parking space is required in addition to what is required for the primary residence. Built form Amenity space: Secondary suites must have private amenity space that is located outside and which is a minimum of 7.5m², with no dimension being less than 1.5. This space may be provided in the form of a balcony, deck or patio. Page 28

33 Table 6: Edmonton - Suite Bylaws and Initiatives LAND USE DISTRICT PERMISSION SUITE TYPE MUNICIPAL ASSISTANCE Almost all low density residential districts containing single family dwellings Permitted Use Secondary suites Medium high density residential zones Discretionary Secondary suites Many low density residential districts and some medium- high residential districts. REGULATIONS Municipal approval & safety codes Use restrictions Occupancy Size restrictions Parking Built form DETAIL Discretionary Garden suites, garage suites on select lots. Must conform to Zoning Bylaw and the Alberta Building and Fire Codes. Land Use Bylaw Amendments Illegal Suite Enforcement Grant Program for the creation of new or upgrading existing suites Cornerstones I Max: $24,000 or 75% of costs 5 year operating agreement Owner occupancy requirement Rent 85% avg market rent Tenant income median income Cornerstones II Max: $20,000 or 50% of costs 5 year operating agreement Owner occupancy requirement Rent: no restriction Tenant income threshold Information and Education Guidance Pamphlet & Website The secondary suite shall not be subject to separation from the principal dwelling through a condominium conversion or subdivision. Only one of a secondary suite, garage suite or garden suite may be developed in conjunction with a principal dwelling A Secondary Suite shall not be developed within the same principal Dwelling containing a Group Home or Limited Group Home, or a Major Home Based Business, unless the Secondary Suite is an integral part of a Bed and Breakfast Operation in the case of a Major Home Based Business Number of unrelated persons occupying a secondary suite shall not exceed three. The minimum site area for a single-detached dwelling containing a secondary suite is 360 m² except in the case of the RR Zone, where it shall be the same as the minimum site area for the Zone. the maximum floor area of the secondary suite shall be as follows: in the case of a secondary suite located completely below the first storey of a single detached dwelling (other than stairways or a common landing),the floor area (excluding the area covered by stairways) shall not exceed the floor area of the first storey of the associated principal dwelling. in the case of a secondary suite developed completely or partially above grade, the floor area (excluding the area covered by stairways) shall not exceed 40% of the total floor area above grade of the building containing the associated principal dwelling, nor 70 m², whichever is the lesser. Minimum floor area for a secondary suite shall be not less than 30 m². A minimum of 3 on-site parking spaces are required for sites with a secondary, garage or garden suite (i.e. 1 parking space per 2 sleeping units for the suite, plus 2 parking spaces required for the primary dwelling). Tandem parking is allowed. A secondary suite shall be developed in such a manner that the exterior of the principal building containing the secondary suite shall appear as a single dwelling Page 29

34 Table 7: Camrose - Suite Bylaws and Initiatives LAND USE DISTRICT PERMISSION SUITE TYPE MUNICIPAL ACTION Land Use Bylaw Amendments All residential land use districts where single family detached dwellings exist with the exception of narrow lot districts. Permitted Use Secondary Suites Grant Program for the creation of new or upgrading of existing suites. Max: $15,000 or 70% of costs 5 year operating agreement Owner occupancy requirement Rent avg market rent Tenant income: no restriction Information and Education Guidance Pamphlet Grant Information Sessions REGULATIONS Use restrictions Occupancy Size restrictions Parking Safety codes Built form DETAIL One secondary suite per single family dwelling Secondary suites not allowed in accessory buildings No owner occupancy requirement. The number of unrelated persons occupying a secondary suite shall not exceed three. A home occupation shall not be allowed in a single family home containing a suite unless the suite is used as part of B&B operation. A group home shall not be allowed within the same single family dwelling containing a secondary suite. Not to exceed 40% of the gross floor area of the principal dwelling; or 90m²(969 sq.ft), whichever is less Shall not be smaller than 38.0 m²(approx. 400 sq.ft); Minimum of 1 additional off-street parking space per bedroom in addition to the parking requirements for the main dwelling unit. Parking spaces shall be provided in an attached or detached garage, side yard behind front setback Tandem parking not allowed Comply with the Alberta Building Code and all Municipal and Provincial regulations; A separate entrance door to a secondary suite on any front building elevation facing a public street must be finished and landscaped in the same manner as the exterior of the single family dwelling. A minimum of 20% of the front yard setback must remain landscaped. Page 30

35 Table 8: Lacombe Suite Bylaws and Initiatives LAND USE DISTRICT PERMISSION SUITE TYPE MUNICIPAL ACTION R1 A, R1 B, R1 C, R2, R4, R CE All Residential districts containing single family detached dwellings, except narrow lot detached districts. Discretionary Secondary Suite LUB amendments Enforcement program Grant Program for the creation of new or upgrading existing suites. $7,000-$15,000 5 year operating agreement Owner occupancy requirement Rent 85% of avg market rent Tenant income: CNIT Information and Education: Website guidance FAQ pamphlet REGULATIONS Use restrictions Occupancy Size restrictions Parking Safety codes Built form DETAIL The density of suites is limited to 10% per a block. Blocks are defined as a continuous group of parcels sharing a lane or property boundary to a maximum of 30 parcels. If the number of existing suites exceeds the prescribed concentration on a block the Development Authority will consider the functionality and merits of each individual application. Only one secondary suite is permitted per a single family lot. None The size of secondary suites is limited to 75m², and cannot exceed 40% of the total floor area of the house (all floors including basement). Off street parking required - 1.0/ suite less than 60 m², 2.0/ suite greater than 60 m² Secondary suites must meet Alberta building Code standards. If a secondary suite is an accessory building (garden suite), the maximum height is limited to 4.6 m (15 ft). Suites developed above a garage cannot exceed a height of 9 m (29.5ft) or the height of the main house, whichever is less. Secondary suites shall have access to rear lanes, except in circumstances in which all other requirements of this bylaw are satisfied, and the provision of all required parking can be accommodated in the absence of a lane, to the satisfaction of the Development Authority. Page 31

36 Table 9: Cochrane - Suite Bylaws and Initiatives LAND USE DISTRICT PERMISSION SUITE TYPE MUNICIPAL ACTION R1 Residential Single Family Detached Discretionary Garden suites, Accessory suites R2 Residential Single and Two-Dwelling district (new/greenfield semi-detached and duplex dwellings) Discretionary Garden suites, Accessory suites Guidance pamphlet Community information sessions. Punitive enforcement measures R-2x Residential medium density multiunit Dwelling district land use rules (semi-detached/duplex dwellings in existing neighbourhoods) Discretionary Garden suites, Accessory suites REGULATIONS Use restrictions Occupancy Size restrictions Parking Safety codes Built form REGULATIONS Use restrictions Occupancy Size restrictions Parking ACCESSORY SUITES The registered owner of a lot shall be limited to one accessory suite, accessory to the principal residence. have full utility services through service connections from the principal residence; None not exceed 40% of the gross floor area of the principal dwelling; minimum gross floor area of m²; 1 per 1 bedroom/suite 2 for 2+ bedroom (outside special parking area) 1 per 1 bedroom/suite 1.75 for 2+ bedroom (inside special parking area) comply with the Alberta Building Code and all Municipal and Provincial regulations; create minimal structural changes to the front exterior of the principal building, which shall appear as a single dwelling unit; GARDEN SUITES A garden suite is considered incidental and subordinate to the principal residence Shall not exceed the maximum density prescribed for the subdivision in which it is located or a maximum of 10% of the number of existing lots in that subdivision, whichever is less; Owner shall be limited to one (1) garden suite or one (1) accessory suite; Owner shall not subdivide title to the garden suite or accessory suite. Shall have full utility services through service connections from the principal residence. No owner occupancy requirement. Be at-grade and not exceed 40% of the gross floor area of the principal residence to a maximum gross floor area of m²; Have a minimum gross floor area of m²; Have a maximum lot area coverage of 60%, when combined with all other buildings on the lot. 1 per 1 bedroom/suite 2 for 2+ bedroom (outside special parking area) 1 per 1 bedroom/suite 1.75 for 2+ bedroom (inside special parking area) Page 32

37 5 Comparison of Municipalities In this section, strategies to encourage accessory suite development in the municipalities of Calgary, Edmonton, Camrose, Lacombe and Cochrane are compared with the approach taken in Canmore. Comparisons are made with respect to: permissions, built-form, secondary suite sizes, parking, occupancy, development permit fees, illegal suite enforcement, and municipal assistance. A summary is provided in Table 10. Permissions Land use bylaw requirements for accessory suites vary considerably. The general trend has been to expand areas where suites are allowed. Camrose and Edmonton have the most permissive bylaws for secondary suite development where secondary suites are listed as a permitted use in the majority of land use districts containing single-detached dwellings. Edmonton also allows garden and garage suites in almost all land use districts where single-detached dwellings are listed uses. Camrose, however, has no provisions for garden or garage suites. Lacombe and Cochrane list secondary suites as a discretionary use. This allows their respective Municipal Planning Commissions an opportunity to evaluate the potential impacts of development permit applications. As a discretionary use, suites are open to NIMBY based appeals, although planning officials from both municipalities indicated that this has not been a significant problem. Garden and garage suites are also discretionary uses in most residential areas in both municipalities. Lacombe and Cochrane both limit the number of suites to 10% of a defined group of parcels. The most common reason that applications for suites are denied are due to this threshold being exceeded. In Calgary, secondary suites are listed as permitted uses in select low-density residential districts. Conditions for adding suites to an existing property in other low density areas are restrictive. In many single dwelling large parcel districts, a land use re-designation is required to accommodate accessory suites. Current proposals are for secondary suites are for to be allowed in inner city wards, and within fixed distances from light rapid train and bus transit stops. By comparison, Canmore has strict locational restrictions for suites in established areas. Secondary suites associated with single-family detached dwellings in established areas are a permitted use in R1B and R1BE land use districts only. In R1 districts, which encompass the majority of low-density residential areas, accessory suites are restricted to lots which have access from both a street and a lane. Effectively this limits secondary suites to low lying areas of Canmore. Due to hydrogeological conditions, opportunities for basement secondary suites in these areas are limited. In new residential subdivisions, however, the MDP contains mandatory requirements for entry level housing, specifically, single-detached dwellings with secondary suites. This has created a situation in Canmore where demand does not correspond with the location and supply of housing. Opportunities are limited in areas in established areas where there is a high demand by homeowners and tenants, while suites are mandated as a form of entry-level housing in the new residential subdivisions where there is limited demand by homeowners and tenants. Built Form In Lacombe, Camrose, and Edmonton, as in Canmore, secondary suites are limited to single-detached dwellings. Cochrane, however, allows secondary suites in semi-detached and duplex dwelling types, while Page 33

38 recent bylaw changes in Calgary introduced R-CG zoning to allow secondary suites in semi-detached and row homes. A survey of other municipalities suggest that secondary suites are increasingly being permitted in building types other than single-detached homes. Grande Prairie, Red Deer, Stony Plain, Whitecourt and Wood Buffalo all allow suites associated with semi-detached dwellings. Secondary Suite Size The maximum gross floor area for a secondary suite ranged from 70m² in Calgary and Edmonton, to 75m 2 in Lacombe, and 90m² in Camrose. Canmore s maximum floor area is at the midpoint of this range at 80m 2. Cochrane takes a different approach, requiring a minimum gross floor area size of 30m². Each community, with the exception of Calgary, have the requirement that a secondary suite cannot exceed 40% of the total floor area of primary building, whereas Canmore allows basement suites to occupy 50% of the building within which it is contained. Occupancy Of the five municipalities reviewed, there was no owner-occupancy requirement for secondary suites. Research conducted by the City of Edmonton in 2006 for its secondary suites bylaw determined that under the Municipal Government Act, it may not be legal for Alberta municipalities to control for owner occupancy. Canmore, however, does have an owner-occupancy requirement regulated by development permit. Parking A minimum of one additional off-street parking space is required for legal accessory suites in all reviewed municipalities. In both Cochrane and Camrose, one additional parking space is required per bedroom in a suite. In Lacombe, a second additional parking space is required if a suite exceeds 60m². Calgary s R-CG land use district has no parking requirement for suites which are smaller than 45m². In Canmore, one additional parking space is required for a suite. Development Permit Fees Development permit fees range from $0 in Calgary to $475 in Cochrane. Canmore development permit fees for a new suite are $150, while development permit fees to legalize an existing suite are $500. Illegal Suite Enforcement The number of illegal secondary suites that exist within the municipalities reviewed is unknown. In municipalities where secondary suites in single-detached houses were allowed, there was not a rush forward to legalize suites. Evidence suggests that the vast majority of suites remain illegal due to financial reasons including the costs of reporting rental income for tax purposes, additional utility fees, costs to upgrade, and potentially higher taxes. Illegal suites are primarily dealt with on a complaint basis. If an illegal suite is confirmed, the homeowner is advised of their options and requested to upgrade where applicable or decommission their suite. Cochrane and Camrose planning staff have indicated that a proactive approach to enforcement is beyond the scope of their resources. In Cochrane, higher development permit application fees are required from illegal suite owners looking to upgrade. Lacombe has taken a more proactive approach to enforcement, however their objective is to work with homeowners to bring suites into compliance rather than close suites down. In instances where a suite is closed, wiring for a stove oven is removed, but the owner may still rent the space out sharing facilities with the homeowner. Page 34

39 Canmore also deals with illegal suites on a complaint basis. Dwellings suspected of containing an illegal suite are occasionally inspected. If an illegal suite is found, separating doors, upper kitchen cupboards, and 220 volt electrical wiring is removed. Municipal Assistance Edmonton, Calgary, Lacombe, and Camrose have each incentivised suite creation by providing grants to home owners. Educational assistance in the form of online homeowner guidance, workshops, pamphlets and information sessions have been used in all reviewed municipalities to support accessory suite provision. The City of Calgary has recently removed land use re-designation fees to encourage suite development. Grant programs, with the exception of Lacombe, have been generally considered successful. Grants in Calgary, Edmonton and Camrose ranged from $15,000 to $25,000 per suite up to a maximum of 50% to 75% of eligible construction costs. In Lacombe, grants range from $7,000 to $15,000. All grants had an owner-occupancy condition and a requirement for five-year operating agreements with various rent and tenant income conditions. Rental rate restrictions required rents to be below average market rents in Calgary, Edmonton (Cornerstones I), Camrose and Lacombe, while Edmonton s Cornerstones II program has no rental rate restrictions. Calgary and Camrose do not have tenant income limits, while Edmonton and Lacombe both have income thresholds. Other Alberta municipalities with an accessory suite grant program include: Lethbridge, Grande Prairie, Strathcona County, Cold Lake, High River, Whitecourt and St. Albert. Each grant program has different eligibility criteria, funding amounts and operational agreement requirements. Of note is Whitecourt s secondary suite grant program which included funding for spaces above or within a commercial building, often office or storage space, to be converted to an accessory suite of between 38-90m². However, to date there had been no uptake on funding for this type of conversion. In Canmore, the 2009 CSP and CHAP documents have both encouraged an accessory suite grant program, but no action has been taken to date. Other Edmonton and Camrose both limit the Home Occupation businesses in homes containing suites, unless the suite is part of a B&B operation. Canmore does not limit Home Occupations in homes containing suites. Page 35

40 Table 10: Comparison of Suite Policies, Bylaws and Initiatives by Municipality ASPECT CANMORE CALGARY EDMONTON CAMROSE LACOMBE COCHRANE Permissions: Secondary Suites Discretionary use in select low density, single family detached districts. Permitted use in limited circumstance in select low-density districts. No provision for suites in manufactured home or narrow lot districts. Permitted use in select low-density single-family detached districts. Land use re amendment required for discretionary use listing in established single family detached districts. Permitted use within almost all low-density districts containing single detached dwellings. Discretionary use in single detached dwellings in higher density areas. Permitted use in almost all districts containing single-family detached dwellings. No provision for suites in manufactured home or narrow lot districts. Discretionary use in all residential land use districts where singlefamily detached dwellings exist, except narrow lot detached districts. No provision for suites in manufactured home district. Discretionary use in almost all residential districts. No provision for suites in manufactured home or narrow lot districts. Permissions: Garden & Garage Suites Discretionary use in R1 districts where access is available from lane and street, and within existing single family detached dwellings in R2, R2A, R4 and TPT- CR districts. Discretionary use in select low-density single family detached districts. Discretionary in R- CG infill LUD. Discretionary use in select low-density districts where detached dwellings exist on select lots abutting lane, parks, commercial services; or corner lots. No provision for garden or garage suites. As above As above Built Form Single family detached dwellings. Primarily Single detached dwellings, rowhouse, semidetached, in new R-CG infill district. Single detached dwelling Single family dwelling Single family detached dwellings Single family detached dwellings, semidetached and duplex dwellings. Minimum Lot Size 460m² (R1) 230m² (R1BE) 390m² 360 m² 370m² 465m² 300m² Secondary Suite Size Shall not exceed 40% of the total floor area of primary building or 80.0 m² whichever is less, where the suite occupies a basement the suite may occupy 50% of the building within which it is contained. Maximum floor area of 70m² Basement: not more than the total floor area of the first storey of the building. Suite on or above first floor: 40% of the principal dwelling or 70 m² whichever is less. Secondary suite shall not exceed 40% of the total floor area of the principal building, or 90m² whichever is less and shall not be smaller than 38m². The size of secondary suites is limited to 75m² and cannot exceed 40% of the total floor area of the house (all floors including basement). Secondary suite must not exceed 40% of the gross floor area of the principal dwelling; Must have a minimum gross floor area of 30m². Page 36

41 ASPECT CANMORE CALGARY EDMONTON CAMROSE LACOMBE COCHRANE Occupancy Owner-occupier requirement. No more than 2 unrelated persons to occupy secondary suite No owner- occupier requirement No owner-occupier requirement. No more than 3 unrelated persons to occupy accessory suite No owner-occupier requirement. No more than 3 unrelated persons to occupy accessory suite No owner-occupier requirement. No owner-occupier requirement. Parking Requirements Minimum 1 additional parking space with direct access to a street or lane. Minimum 1 additional parking space *RCG zoning has no parking req. in smaller suites. Minimum 1 additional parking space. Tandem parking is allowed. Minimum 1 additional off street stall per bedroom/ Tandem parking is not allowed. Minimum 1 additional off street stall required. 2 stalls for suites greater than 60m². 1 additional stall for 1 bedroom; 2 stalls for 2+ bedrooms Development Permit Fees $150 for new suite. $500 to legalize an existing suite. No development permit fees Secondary suite within existing house: $260 + additional sewage charge. $100 $150 ($ permit fee + $50.00 advertising) $475 Illegal Suite Enforcement Complaint basis Inspection with potential removal of cupboards, door locks, stove plug. Complaint basis Inspection with potential closure Complaint basis Invites upgrade or force decommission. Non--enforcement due to lack of resources Complaint basis Inspection / potential suite closure Complaint basis Punitive with doubling of DP fees to upgrade an illegal suite. Municipal Assistance Limited online guidance. Drop-in staff assistance. Grant Program. Guidance pamphlets Website guidance Workshops Grant program Guidance pamphlets Website guidance Workshops Grant program Guidance pamphlet Website guidance Info sessions Grant program. Website guidance FAQ. Zoning map Info sessions Guidance pamphlet Website guidance Removal of DP fees Design checklist Removal of land use amendment app fees. Grant Program None $25,000 or 70% of cost 5yr operating agreement Owner occupancy req Rent avg market rent No tenant income restriction Cornerstones I $24,000 or 75% of cost 5yr operating agreement Owner occupancy req Rent 85% avg market Income median income Cornerstones II $20,000 or 50% of cost 5yr operating agreemnt Owner occupancy req Rent: no restriction Tenant income income threshold $15,000 or 70% of cost 5yr operating agreemnt Owner occupancy req Rent avg market rent No tenant income restriction $7,000-$15,000 5yr operating agreemnt Owner occupancy req Rent 85% of avg market rent Tenant income: CNIT No grant program. Page 37

42 ASPECT CANMORE CALGARY EDMONTON CAMROSE LACOMBE COCHRANE Other None None Suites shall not be developed in conjunction with major home-based business uses, except where an integral part of a B&B Operation. Group Homes shall not be allowed in the same dwelling as a suite. Home occupation shall not be allowed within the same single-family dwelling containing a secondary suite, unless the home occupation is a B&B. A group home shall not be allowed in the same single family dwelling containing a secondary suite. The density of suites is limited to 10% per a block. If the number of existing suites exceeds the prescribed concentration on a block the Development Authority will consider the merits of each individual application. Accessory suites are approved on a firstcome, first-served basis to a maximum of 10% of the lots in a neighborhood. Page 38

43 6 OPPORTUNITIES This section concludes the report with the identification of six potential strategies to reduce barriers to and encourage the creation of safe and legal suites, and to allow for better alignment between supply and demand in Canmore. As the Town of Canmore rewrites its Municipal Development Plan, it is an appropriate time for Council to consider these opportunities and create a strategic and supportive policy framework to increase the supply of legal suites for the community benefit. 1. Expand locations and building forms where accessory suites are permitted The trend in other municipalities has been to expand areas where suites are allowed. Allowing legal accessory suites in all neighbourhoods would be an equitable community-wide approach to accessory suite provision. This could include single-detached dwellings on narrow or smaller lots and manufactured homes, and be expanded to allow accessory suites in higher-density building forms including semi-detached, duplex, row and townhouse buildings. This strategy recognizes the extent of illegal suites in established neighbourhoods in Canmore and in building forms other than single-family detached dwellings. It would allow homeowners of existing illegal suites to legalise and make their suites compliant with applicable codes, or where lot configuration allows, to develop a garden or garage suite. It also recognizes that accessory suites in higher-density building forms may be a more feasible way of supporting entry-level housing, housing stock diversity and affordable home ownership in Canmore. As land and construction costs rise, single-detached dwellings become even less accessible to the majority of Canmore s resident and working population. Accessory suites in higher-density building forms would be appropriate in both new subdivisions and infill development in existing neighbourhoods. This strategy requires an explicit and unqualified policy statement in the MDP to support the expansion of accessory suites to all neighbourhoods, existing and new, and in higher-density building forms. The policy statement would then inform land use bylaw changes and initiatives to educate and encourage the legalization of existing and creation of new suites. 2. Reduce and remove barriers to accessory suites in the land use bylaw Amendments to the land use bylaw can reduce and remove undue barriers to accessory suites. Requirements for parking, landscaping, appearance, and usage conditions should be based on the intended outcome and be fair and achievable for homeowners instead of being overly prescriptive. Parking Parking requirements could be reduced, particularly for small accessory suites designed to be occupied by one person. This would be similar to the Calgary R-CG land use district where no additional parking is required for accessory suites smaller than 45m². Reduced parking requirements may also be appropriate in neighbourhoods within reasonable walking distance of town amenities and on smaller lots and in narrow lot districts that may lack the area required for additional parking. The introduction of local transit may also offer an opportunity to reduce off-street parking requirements. Page 39

44 Alternative Design Standards The Town may encourage alternate residential design for accessory suites. This concept was introduced in the CSP including alternative design standards for garden suites, including modular/ micro suites, and retro-fitted shipping containers as cost effective and portable dwelling units. Owner-Occupancy Community members often request the owner-occupancy requirement. These comments are often linked to the negative characterization of renters and suggestion that renters are not as community-minded as owners, which are not necessarily fair and substantiated claims. While the 1998 MDP and 2009 CSP reference owner-occupancy of the primary dwelling as a guideline to permitting accessory suites, it is understood that an owner-occupancy requirement is very difficult, if not impossible, to enforce, and that the Town may not have the legal authority to regulate the user in this way. Removing the owner-occupancy requirement as a condition of development permit approval for an accessory suite may encourage the legalization and creation of suites, and the better utilization of dwelling units, both primary and accessory. It can, however, remain as a condition associated with specific incentives and grants that the Town may provide. 3. Review the provision of accessory suites in single family detached homes as an entry-level housing requirement in new residential subdivisions. Evidence suggests that the majority of single-family detached plus dwellings constructed to meet mandatory entry-level housing requirements in new residential subdivisions, specifically Three Sisters and Silvertip, are not being used as accessory suites, and therefore are not meeting the intent of this policy. An alternative would be to encourage flexible housing standards. Flexible housing design can take homeowners through a variety of life stages, from first time homebuyers, to growing families, home-office users and empty nesters. Non-load bearing walls are designed to be easily moveable, phone lines and electrical outlets are pre-planned to create different options. Fire rated assembly between walls and floors and separate heating and ventilation systems are built in from the beginning for potential suite division. This means that a bedroom can easily be converted to a home office, or a secondary suite can be installed in a basement. This would allow homeowners to reconfigure their house to accommodate changes, with minimal modifications and expenditures, and better align supply and demand as household and community housing needs change. An option for the Town is to undertake a revision of entry-level housing requirements, in collaboration with various housing stakeholders, to define clear and appropriate standards for entry level housing provision that better align supply and demand. 4. Provide financial incentives for accessory suites As identified in the CHAP and CSP, the revised MDP may contain a strong mandate for incentive programs for homeowners to construct and legalize accessory suites. Homeowner grants, tax deferrals or breaks, have previously been identified as possible incentives. Page 40

45 Grant Program Financial assistance to homeowners through grants has been viewed as a successful means of encouraging new suite creation and legalization of existing illegal suites in other municipalities. Grant programs elsewhere in Alberta generally provide between 50-75% of construction costs to a maximum value of $15,000 to $25,000. Grants are typically tied to a five-year operating agreement which can have different requirements, including owner-occupancy, lease terms and rental rate limits, and tenant criteria. Development Permit Fees There is the potential to reduce permit application fees for both development and building permits to legalize an existing accessory suite to correspond with permit fees for new suites. For development permit fees this would mean a reduction from $500 to $150, and for building permit fees, a potential reduction from $500 to $8.25 per $1,000 of the cost of work and the Alberta Safety Code fee. 5. Proactive approach to legalization of existing suites The prevalence of illegal suites, and existence of legal but non-compliant suites, is a significant tenant health and safety issue, and raises concerns about the impact on the community. In conjunction with bylaw law amendments and other incentives, the municipality can work with homeowners to take a proactive approach to legalizing suites and making them compliant with current codes. The Town can also work with the Safety Codes Officer, Fire Chief, and relevant authorities to determine the feasibility of requiring homeowners of existing illegal suites to be required to meet the less onerous Alberta Fire Code requirements rather than Alberta Building Code requirements, as was done by the City of Edmonton. Allowing the Alberta Fire Code regulations to be applied to older, existing illegal suites would greatly reduce the costs associated with renovating a basement/attic in an older property. 6. Public education and information The experience of other municipalities suggests that a public education strategy and user friendly information is key to the success of land use bylaw amendments and other initiatives that encourage the legalization and creation of accessory suites. Workshops, focus groups, and user friendly website tools have all been used by other municipalities to build community consensus and provide more detailed information. Step by step guidance can be provided to homeowners who may be interested in legalizing an existing illegal suite, or creating a new accessory suite. These could be useful resources for Canmore residents and homeowners. Page 41

46 APPENDIX 1: SUPPLEMENTAL ALBERTA BUILDING AND FIRE CODE INFORMATION The Alberta Building Code requires suites built after December 31, 2006, to have independent or separate heating/ventilation systems for the primary suite and the secondary suite. Independent heating/ventilation can mean two furnaces, or a combination of furnace and supplemental heating, such as space heaters. The Alberta Fire Code allows homes with a secondary suite built prior to December 31, 2006 to have a single heating/ventilation system. Interconnected smoke alarms and other safety features in the fire code provide safety in existing suites with a single heating/ventilation system. It also gives an accredited municipal safety codes officer discretion to accept the ceiling height of an existing secondary suite which removes the potential for older homes to face unacceptable renovation costs and work due to lower ceiling heights. The building and fire codes also include the following requirements for secondary suites: Minimum ceiling height of rooms and spaces should be 1.95 m or 6 6, although there may be room for discretion. Direct exit to outdoors to provide a primary means of evacuating occupants in the event of a fire or other emergency. A basement suite can have stairs leading from the basement to a main vestibule with a doorway directly to the outside. A direct exit from a basement may also be provided by cutting through the foundation for a door to the outside and steps leading to ground level. At least one window in each bedroom for emergency fire escape. The window must have an unobstructed opening size of not less than 0.35m² and no dimension less than 380mm. Tenants must have access to the window and any protective enclosure such as security bars from the interior without the use of keys or tools to get to the outside. Fire protected walls and ceiling between a secondary suite and the main dwelling unit and around common exits by the use of ½ inch (12.7 mm) drywall to allow occupants adequate time to evacuate. Gas-fired furnaces and water heaters enclosed in a room with fire protected walls and ceiling by the use of ½-inch (12.7mm) drywall applied to both sides of the walls to prevent fire spread to the living areas and escape of flue-gas. Interconnected smoke alarms must be installed to cover both primary and secondary dwellings. New secondary suites shall be served by an independent heating and ventilation system. Smoke migration between a secondary suite and the main dwelling can occur quickly when a common ductwork system serves both areas. Undesirable air contaminants such as cigarette smoke or cooking fumes are also transmitted more quickly if free air exchange between the suites is permitted through common ductwork. Page 42

47 APPENDIX 2: MUNICIPAL POLICY REFERENCES TO ACCESSORY SUITES Accessory suites are referenced in various statutory and non-statutory municipal documents. The Municipal Development Plan (1998) Entry level housing is housing that provides reasonably priced starter home opportunities for permanent Canmore residents.in the case of single family units, the provision of a secondary rental suite will normally be required to qualify as entry-level housing. General Residential Policy: c) The Town will continue to pursue the following housing initiatives:.provide incentives for the provision of smaller, entry-level housing units including secondary suites, townhouses and apartment rental units; Existing Residential Areas Policy: e) Secondary Suites in Existing Communities Monitor housing affordability to determine the need to allow the introduction of legal secondary suites into existing communities. If, in the opinion of Council, Canmore continues to experience a shortage of affordable rental housing (as defined by Council) by January 2000, Council shall consider an amendment to the Land Use Bylaw to allow for secondary suites as discretionary uses in selected residential neighborhoods based on: public consultation with affected neighborhoods; establishment of planning principles to be used as a guide in the exercise of discretion (on-site parking, access, density control, streetscapes, etcetera).; owner occupancy of the main dwelling Future Growth Areas: (c) Secondary (accessory) suites should be allowed as a discretionary use in appropriately designed single detached homes in future growth areas. Appropriate standards for development of single family lots and dwellings that can accommodate secondary suites, provide appropriate parking, and retain an attractive streetscape, will be incorporated into the Land Use Bylaw Community Sustainability Plan 2009 (CSP): The CSP was intended to update the MDP as Canmore s statutory land use policy framework. Following legal challenges, the CSP was rescinded by council in Despite this, it still provides valuable information regarding the policy direction at the time of its development. Accessory Suites in Existing Communities; The Town shall review the Land Use Bylaw and consider associated policy initiative to assess the possibility of allowing accessory suites in all existing single family residential areas, based on the following guidelines: Principal dwelling units will be owner occupied; Adequate additional on-site parking; Possible limits on the number or percentage allowed in any particular area or neighbourhoods; Adherence to Provincial fire and safety guidelines; and Page 43

48 The capacity of local infrastructure such as water and sewer services An incentive program for home owners to construct accessory suites (incentives would be tied to the provision of Perpetually Affordable Housing units) shall be considered by the Town. This program could include homeowner grants, tax deferrals or breaks, and modification of parking standards Secondary Suites in New Residential Communities; The Town shall allow secondary (accessory) suites in all new residential subdivisions where single detached homes are provided. An R-1B (Residential Single Family Detached Plus) land use district (or equivalent) will be a required minimum for all new residential rezonings. Comprehensive Housing Action Plan 2008 Action Item 5; Incentives for Accessory Suite Creation Create and implement municipal legislation that facilitates the creation of new accessory suites (basement, main floor, second floor, garage, garden). Amend current regulations so that (owner occupied) suites (with maximum sizes are allowed in most if not all residential land use districts. This will allow for the legalisation of existing illegal suites. Possibly follow the permitting processes that have been established for B&B s. Incentives could include homeowner grants, tax deferrals or breaks, modification of parking standards and would be tied to the provision of PAH equity or rental units. Comprehensive Housing Action Plan 2011 Policy Based Action Item 4: Incentives for Development of Affordable Housing Units; Develop and implement a policy which outlines possible incentives for the development of affordable housing units, including: a. Secondary Suites - Incentives could include tax deferrals, tax breaks, assessment freezes, homeowner grants or a modification in parking standards.` Page 44

49 APPENDIX 3: Map of R1 and R1A areas where Suites proposed in Bylaw (27) Z 2008 Page 45