Victoria City Council Adopts Commercial Parking Lot Housing Conversion Incentive Policy

VICTORIA, BC — Victoria City Council passed a targeted municipal tax incentive policy on Saturday, establishing a 10-year municipal property tax exemption for property owners who convert surface commercial parking lots in the downtown core into multi-family rental housing.

Incentive Structure and Housing Targets

The Revitalization Tax Exemption (RTE) program applies to designated surface parking lots in downtown Victoria, Harris Green, and Burnside-Gorge. To qualify, developments must dedicate a minimum of 80% of floor area to residential rental units, with at least 20% of units secured as below-market affordable rentals for a minimum of 60 years through statutory housing agreements.

The policy also exempts participating projects from municipal development cost charges (DCCs) on the affordable rental portion, saving developers an estimated $18,000 per unit in municipal upfront fees.

Urban Infill and Housing Supply

Downtown Victoria currently contains over 14 hectares of underutilized surface asphalt parking lots that generate minimal property taxes while contributing to urban heat retention. Mayor Marianne Alto stated that the policy creates the financial catalyst needed to unlock prime urban land for workforce and student housing.

Urban planning advocates commended the initiative, noting that converting surface lots into residential communities promotes downtown retail foot traffic and supports active transit.

Program Application Period

Property owners can submit revitalization tax exemption applications starting September 1, 2026, with the first qualifying developments expected to break ground in spring 2027.