This section of the toolbox aims to shed light on the development process of affordable housing projects, a process which is known to be complex. In this section, you will find information on property searching, site selection, zoning, the difference between development and building permits as well as design considerations for community housing.
Site Searching & Selection
A general list of categories to explore
Privately-owned properties: Sites that are on the market, found through real-estate brokers.
www.realtor.ca
www.centris.ca
Tax Sale Properties: Occasionally Revenu Quebec will liquidate pieces of property -that have gone unclaimed (from inheritance, safety deposit boxes, successions etc.) or that may have significant outstanding taxes owed- at public auction.
www.taxsaleshub.ca
Foreclosed properties: Foreclosures are rare in Canada, if they do occur most private banks will list these “real estate-owned” (REO) properties that they are trying to sell to recover their mortgage.
*Foreclosure is triggered when an owner is in default on their mortgage, meaning they have missed 4 or more payments and the lender has gained court permission to start the foreclosure process. If the owner can not catch up on mortgage payments within the redemption period then the court will either grant a final order of foreclosure or final order of sale. The former means the property title will be transferred into the name of the lender and the property can be sold in a usual fashion, the latter means the property will be sold under court order in a judicial sale which are listed in the public Sales Register.
Judicial Sale: Occur more frequently than foreclosures in Canada, but are still infrequent, these sales are public auctions of properties that have been seized or hypothecated.
Sales Register
Religious properties: Religious institutions may have surplus properties such as convents or parochial schools that can be sold or leased to non-profit sponsors. This source can be attractive since they are likely to support the mission of sponsor organizations, and may sell at below-market prices.
West Island Network
Municipal land banks: In favourable market conditions, municipalities can buy land on the market and bank it for future use. Local municipalities also own land that is often underused (e.g. parking lots) that can be reserved for social housing purposes.
Municipal land expropriation: Under Quebec planning act there are several conditions, like vacancy and deterioration, for which a municipality can expropriate an existing building. It can then sell it to non profit organizations or local housing offices for social and community housing purposes. In general terms, the Expropriation Act authorizes governments to expropriate any property for public purposes and there is growing consensus that non-profit, community housing should be indeed considered as such.
Scale
The size of the proposed development is very important as it should relate to the level of need for the housing identified in the community, this is something to consider when shopping around for sites. The size of the proposed development should also fit the contextual scale of the neighbourhood, so how you will blend your project into the neighbourhood (through design, height, density etc.) is another consideration.
Location
Public transportation, neighborhood amenities, community-based services, day-care, schools and general security are things to keep in mind when considering the location of a potential site.
Acquisition or lease costs
The cost of acquiring a development site is often the make or break factor to selecting a site. The purchase price must allow the project to be feasible, this requires a thorough understanding and analysis of your financials before moving forward with any acquisitions. Check our feasibility checklist for further information.
Zoning considerations
Does the proposed project fall in line with the community’s municipal development plan and land-use bylaw? This needs to be considered since so much time and energy goes into these proposals and if it doesn’t will it be possible to rezone the site to make the proposal work?
Community acceptance
Will community acceptance be a challenge for your project? Is there a history of NIMBYism in the area you are looking at? Will you need to perform community consultations as part of a rezoning requirement and will that cause delays in accessing permits or approval from council?
Development
Steep terrain, flood plains, wildlife corridors, protected biodiversity greenspace are all development constraints that can be researched when considering a site. Availability of services like roads, water, electricity, sewer lines and all their servicing agreements are other considerations to look up before buying property.
Zoning & The Local Planning Process
Zoning is one of the tools that land-use planners use to design and plan out cities. Zoning regulations are the rules set by city council for where new buildings should go, what types of buildings can be where and what activities and business can take place in those buildings. Typically land is zoned as one of the following: industrial, commercial, residential or agricultural which means the buildings and activities that occur on that land have to fall into that category. However the number of zones and type of zones varies from city to city, for example the municipality of Montreal currently has nine zone designations.
Zoning also controls things like:
# of dwelling units allowed
Maximum floor area
Maximum building height
Minimum landscaping requirements
Lot dimensions
Building set backs
FAR: floor area ratios
These rules help maintain views of monuments or rivers, ensure space is left for sidewalks or trees or backyards and even consider things like how large a shadow can be cast on your neighbours. All together these rules make up the Zoning Bylaw of a municipality, where every parcel of land has a zone and a set of rules attached to it.
Development Permits vs. Building Permits
In municipalities, development permit approvals must be obtained for new construction, renovations, businesses, and changes of use to existing buildings. A development permit is written approval from the municipality that your plans are in accordance with the applicable zoning regulations. A development permit approves the use of a site, as well as the size and location of any buildings or structures. Development permit fees can range anywhere from 500$-5000$ depending on the requests in an application. For example, requesting for a zoning change costs 1500$ in Dorval.
A building permit is required before any construction can take place. Each municipality of the Greater Montreal area has different by-laws regarding the modifications that can be made to your property. In general, a building permit is only valid for 12 months after its approval because it is possible that some by-laws may change depending on the municipality. A building permit expires if the renovations are not completed within 18 months after the building permit approval or if the renovations are stopped for more than 6 months. Once the building permit expires, you will have to reapply for a building permit if the work has not been completed on time. Building permits on average in the West Island cost 8$/ 1000$ of work + an initial deposit.
Before approaching a permit counter, ensure you have proper experts to help you fill out the application form for requesting the needed permits and certificates. This could be an urban planner, project developper, architect or GRT.
Design Considerations
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Page last updated: October 2022
