Coquitlam Approves Temporary Density Bonus Discount, To Tweak Rental Incentives

Coquitlam City Council recently approved a temporary 15 percent discount on density bonus payments to help developers push rental projects forward amid a sluggish market. Essentially, developers can access the bonus—extra floor area allowed beyond base zoning—at 85 percent of the usual cost, as long as they apply for their building permits by July 31, 2025. This tweak doesn’t lower the bonus rate itself; it simply offers a saving at the permit stage during a slow property market.

This move was made because many presale condo buyers are holding off, which means fewer projects are moving ahead and the city isn’t collecting the usual bonus fees. The temporary discount aims to bridge that gap by making Coquitlam more appealing compared to nearby cities like Burnaby or North Vancouver, where fees remain unchanged.

Alongside this change, council also reviewed the overall Rental Incentive Program, active since 2017. This program hands out bonus floor area in exchange for rental units in certain zones. So far, it’s helped advance nearly 9,000 units, with over 1,500 under construction and close to 900 completed by April 2024.

However, recent provincial legislation has disrupted parts of the incentive program. The city is now revising four main areas: formalizing a housing mix policy, encouraging 100 percent rental in medium-density zones, increasing below-market units in high-density zones, and updating its Affordable Housing Reserve Fund.

The housing mix policy is planned to guide the share of unit types—like three-bedrooms or accessible units—in multi-unit buildings. A draft is expected this summer. Meanwhile, the incentive for medium-density rental projects is being overhauled to reflect new transit-oriented development rules. And revisions for high-density and low-cost units are expected by 2026.

City staff emphasize that although the 15 percent discount reduces projected revenue, it may help restart the pipeline of apartment construction. During the council meeting, one councillor supported the discount, saying, “If that means getting 85 percent of something, versus 100 percent of nothing, I’ll take the 85 percent.” The motion passed 6‑1, with one councillor expressing concern that developers adjust asks based on market swings. This combined approach—a short-term discount and a long-term rental incentive overhaul—signals Coquitlam’s effort to adapt to shifting market dynamics and provincial rules. With these changes, the city hopes to keep rental development moving, boost housing supply, and support affordability in the years ahead.