^NewsTenant Relocation Policies for Redevelopment in Vancouver and Burnaby

TRPP and TAP

Recently we’ve been reviewing the different acronyms around tenant assistance policies (Burnaby’s TAP) and tenant relocation and protection policy (Vancouver’s TRPP). This blog looks to summarize some of the main points and compare between the two. Future posts will go into more of the calculations of cost and analysis.

Burnaby Tenant Assistance Policy (TAP) Summary

Applicability:

• Applies to purpose-built rental (PBR) buildings with 5+ units.
• For consolidation projects, also applies if secondary market units (<5) are assembled with a building over 5 units.
• Does not apply to non-market, non-profit, or co-op housing.
• Applies to rezonings.

Designated Tenant:

• If there’s more than one tenant on a lease, tenants must designate one person to receive the assistance, and they are responsible for fairly splitting proceeds among themselves.

Caretaker Units:

• Eligible for assistance.
• Compensation based on the average rent for a comparable unit in the building at the time of move-out.
• Allows for Residential Tenancy Act (RTA) rent increases between the move-out and the replacement unit move-in.

Ineligible Tenants:

• Tenants already part of another Tenant Relocation Policy (TRP) process and awaiting replacement units.
• Subtenants and roommates.
• Tenants evicted for cause.

Vacant Units (Look-back Provision):

• Tenants who vacated within 24 months prior to the eligibility date may have rights to compensation.
• Designed to discourage developers from “emptying” buildings before applying for rezoning.
• Not intended to provide retroactive compensation in good-faith situations (e.g., tenant chose to end lease).
• Policy effectively incentivizes developers to leave units vacant rather than re-renting them prior to rezoning.

Rent Top-Up Options

If Developer Finds the Replacement Unit:

• Developer pays the difference between new rent and old rent.
• Developer covers any new deposit requirements.
• Rent increases are split proportionally between developer and tenant.
• Developer pays BC Housing heat allowance if old unit included utilities but the new one does not.
• Top-up ends at the determined move-in date, regardless of whether the tenant actually moves into the replacement unit.

If Tenant Finds the Replacement Unit:

• Top-up capped at:
  • CMHC rent for same zone + 30% minus existing rent, or
  • 15% of existing rent, whichever is higher.

Lump-Sum Payment Option:

• Greater of:
  • (CMHC rent × 1.3 − existing rent) × 36 months, or
  • (15% of existing rent) × 36 months.

Moving Assistance

Tenant’s choice:

• Developer-arranged move (Metro Vancouver only), or
• Flat-rate payment:
  • $900 (studios, 1-bed units)
  • $1,200 (2-bed units)
  • $1,400 (3-bed units or larger)

Right of First Refusal (ROFR) Replacement Units

• Same rent plus allowed RTA increases in the interim.
• Same number of bedrooms and same moving assistance.
• Accessibility needs must be accommodated.

Process & Complexity Notes

• Selection of preferred compensation occurs only after a group tenant meeting with the developer and the City.
• Tenants can switch between top-up options (except once they’ve taken the lump sum), with the City offering offsetting adjustments.
  • This creates unusual flexibility: if rents drop, tenants may switch to the lump sum.
• The system offers high optionality but adds complexity and planning challenges for developers.

Developer Bonding & Consulting Fees

Flat consulting fee of $100,000 applies to projects with 15+ units and developer must submit a cost estimate and post a bond with the City.

Vancouver’s TRPP

Vancouver’s TRPP is a city wide policy that also has a special overlay for Broadway plan, TOA (amended recently), and Grandview Woodlands plan.

Applicability

• Applies to:
  • Purpose-built rental (PBR)
  • Mixed-use buildings with rental
  • Multiple conversion dwellings with 5+ units
  • Non-profit and co-op housing
  • Rented strata units
• Secondary market units included if:
  • Part of an assembly of 2+ lots
  • New multiple dwellings are proposed
  • Located in a TOA, Broadway Plan area, or Grandview-Woodland plan
• Excludes:
  • Owner rent-backs after selling
  • Tenancies under 2 years at the Development Permit (DP) submission when no rezoning is required
  • Single-site developments (except strata)
  • Developments under 5 units
  • Tenants who moved in after land acquisition but stayed <2 years before DP

Eligibility

• Tenants with ≥1 year tenancy at time of DP or rezoning application
• Tenants who moved out before formal eviction notice are still eligible
• Roommates and shared tenancies: City staff may require individual assistance per occupant, including:
  • Moving assistance
  • Help finding replacement accommodations

Relocation Assistance and others

• Assistance finding new housing: administrative expense $2,000-3,000
• Moving expenses: $750 – $1000
• Utilities stipend (if prior lease included utilities): $1500
• Stipend to cover other relocation expenses: up to $2500
• Plus other possible requirements of tenants that are low income

Monetary Compensation (Tenant Choice)

1. Lump Sum Option (City wide)

• Developer may offer free rent or cash
• Compensation based on length of tenancy:

2. Rent Top-Up Option (Broadway Plan, TOAs, and Certain RM zones in Grandview-Woodland)

• Two formats (tenant choice):
  1. Lump sum equivalent (for 33 months), assuming 2.5% annual rent increases
     • Based on average rent for newer units in CMHC vs current tenant rent
  2. Continuous top-up, paid monthly
     • Developer may pay directly to tenant or their new landlord
• Amount depends on who finds the new unit:
  • If developer finds: top-up covers actual rent gap
  • If tenant finds: capped at CMHC average market for newer units
• During tenancy, future rent increases are split pro-rata between tenant and developer

Right of First Refusal (ROFR) (Broadway Plan, TOAs, and Certain RM zones in Grandview-Woodland)

Core Rules:

• Returning tenants have ROFR at the lower of:
  1. 20% below CMHC Vancouver average rents, or
  2. Their prior in-place rent

• ROFR locations:
  1. The newly built building
  2. Another comparable building, if applicable
• ROFR tenants:
  • Count towards the 20% below-market unit requirement for rezoned buildings
  • Receive first choice of units before public leasing
• ROFR only applies to units secured as rental for 60 years, as per standard rezoning conditions

Suitability Standard for Return Units

ROFR return units must meet the CMHC National Occupancy Standard:

From <https://www.cmhc-schl.gc.ca/professionals/industry-innovation-and-leadership/industry-expertise/affordable-housing/provincial-territorial-agreements/investment-in-affordable-housing/national-occupancy-standard>

• Max 2 persons per bedroom
• Shared bedroom rules:
  • Couples share
  • Children under 5 (opposite sex) may share
  • Lone parents and adults over 18 have separate rooms
• Exception: 1 adult may occupy a studio alone

Summary and key differences:

Applicability:

Vancouver TRP includes secondary market rentals i.e. strata windup where there is land assembly. This is somewhat strange and may encourage owners debating a strata windup to take personal use possession of the unit or to sell to someone who will prior to such a policy becoming effective as a ROFR for 20% below CMHC average rents would be a big loss to valuation. Burnaby keeps it purely to redevelopment of purpose built rentals.

Burnaby excludes coops and nonprofits, whereas Vancouver’s TRP generally includes them.

Compensation for top-up during interim:

Generally similar although Burnaby uses the greater of CMHC same area average rent 1.30 or existing rent x 1.15 as the ceiling for rent of interim unit that developer would cover the rent different on, and Vancouver uses the CMHC average rent for newer units. This is in cases where tenants choose their location. Burnaby uses 36 months for lumpsum calculations whereas Vancouver uses 33 months but requires a 2.5% assumed annual growth in rents.

ROFR:

Bigger differences here. Burnaby TAP ROFR allows for the same rent + RTA increases in the interim. Whereas Vancouver ROFR requires the lower of a) same rent without RTA increases in the interim, and b) 20% below CMHC average rent for the city.

Others:

Both require moving assistance and have various administrative requirements.

In the next blog post we’ll analyze the costs of these tenant protection policies with some stylized numbers.