What is Subdivision?

The ability to create new lots is referred to as subdivision potential. Subdivision potential is shaped by Official Community Plan (OCP) policies, land use regulations, and the community values in place when they were adopted. As land costs rise, environmental limits tighten, climate change accelerates, and Indigenous reconciliation advances, there is an immediate need to rethink how we regulate land to better reflect current priorities.

What is the current subdivision potential?

Currently, 45 residentially zoned properties on Denman Island have the potential to be subdivided into multiple lots. Based on existing bylaws, these subdivisions could result in up to 143 new lots. The existing zoning, which allows secondary suites and multiple dwelling units, reflects the potential for 300+ new dwelling units if the subdivisions were realized.

Each new lot can result in significant impacts on the land, water supply, and cultural heritage. While these impacts can be assessed during the subdivision application process, the community has an opportunity, through the OCP review, to consider the costs and benefits of allowing further subdivision.

What other options are there for regulating subdivision?

Option 1:

Limit subdivision to only allow new lots in limited instances, such as when land is donated for building affordable housing, or where the new lot is a nature reserve, park or protected area. This option would remove the potential for subdivision in all areas where it is currently permitted. By reducing the build-out potential on the island, these densities could be reallocated to projects that result in affordable or attainable housing.

Note: A landowner could still apply to rezone their property to allow subdivision. While this would be an extra step, it would allow the proposal to be reviewed to ensure that the subdivision is undertaken in an appropriate location (eg. there is sufficient water, it is not disruptive to sensitive ecosystems or culturally sensitive areas).

Option 2:

Limit subdivision to suitable areas only. Suitable areas are areas where negative impacts to the environment, cultural heritage and the sustainability of freshwater resources are less than in other areas, and access to amenities, trails and transportation (ferry and  bus route) is higher than in other areas. These areas can be identified using mapping work recently done by Islands Trust, including the water balance work. As with Option 1, the densities that would be removed could be reallocated to projects that result in affordable or attainable housing.

Option 3:

Continue to permit subdivision in locations where there is presently the potential to create additional residential lots. This maintains the status quo and does enable additional residential lots to be created. With the rising costs of land, subdivision for single family dwellings are unlikely to create opportunities for attainable or affordable housing.

What is Rezoning?

Rezoning is a change to the zoning regulations that apply to a particular lot or area. Changes to zoning are the only way to increase the permitted density or change the permitted uses on a parcel of land. Zoning changes can be initiated by the Local Trust Committee, or a property owner can apply to rezone their land through a bylaw amendment application. The LTC must consider applications that are submitted.

It is important to incorporate community values into Official Community Plan policies, which are relied on when changes to land use or density are considered.

Options?

Considerations for any rezoning for additional density

Community need: The current OCP considers rezoning for multi-dwelling residential for only special needs, seniors and affordable housing. This could be extended to housing that is affordable to low to moderate income earners (attainable housing*).

Suitability of the Land: The currently OCP relies on subdivision and buildout potential to address housing needs associated with population growth. Criteria such as limiting impact on sensitive ecosystems, archeological sites and areas of Indigenous cultural significance could be considered, as well as groundwater considerations, sewage capacity, access to services and amenities, and other criteria.

Size and Siting of Buildings: Size and siting is already considered in existing policies and regulations. These could be revisited in keeping with the values identified.

Water Collection Cistern Requirements: Freshwater collection cisterns could be required for all new builds to help reduce impact on limited groundwater resources.

*Attainable housing means homes that people earning average local wages can realistically afford, without requiring subsidy, so they can live and work in the community. Housing agreement is not necessarily required.

OCP Policies Could Support the Following Options (not mutually exclusive):

Option 1: Cluster Housing

Policies that allow re-zoning for Cluster Housing (Community-Scaled, Living, Units, Sited, Together for Ecological

and Economic Resilience). Cluster housing groups several small homes, attached or detached, on one lot without subdividing the land. This reduces development footprint and improves space and infrastructure efficiency. Rezoning may require housing agreements and limits on individual or total combined floor area.

Option 2: Small Unit Clustered Housing

Policies that support small unit housing. This is similar to Cluster Housing as it encourages clustering and housing agreements, however, it is distinct in that it considers the opportunity for a number of small units including mobile units, such as tiny homes on wheels or manufactured homes, on a lot with shared facilities such as laundry and common rooms.

Option 3: Flexible Housing

Policies that allow for multiple additional dwelling units in suitable areas within a maximum combined floor area for all units. This is different from the above as it is working with smaller numbers of units and number of units would be determined by size of lot. Housing agreements would not be required. On Mayne Island this has been introduced as “flexible housing” zoning.

Option 4: Density Bonus for Conservation or Restoration

Policies that enable density bonuses to be incorporated into the base zoning for residential property. This would establish criteria that, if met, would allow additional density on residential lots without requiring a rezoning process. For example: protection of X amount of hectares for conservation or restoration could permit an additional unit.

CLUSTER housing

Community-Scaled
Living
Units
Sited
Together for
Ecological and Economic
Resilience

What is Cluster Housing?

Cluster housing groups several small homes (attached or detached) on a single lot without subdividing. This:

• Uses land more efficiently
• Reduces infrastructure needs
• Minimizes environmental impact
• Supports alternative ownership models, such as co-operatives or shared equity

Affordability can be improved through land sharing and smaller building footprints, making homes more accessible to a range of income levels, including low to moderate incomes (attainable housing).

Is Cluster Housing Allowed on Denman?

The Official Community Plan (OCP) supports rezoning for affordable, multi-unit housing. Including “cluster housing” directly in the OCP could:

• Streamline approvals
• Provide clearer guidance and criteria
• Speed up rezoning processes

Why Consider Cluster Housing?

Supports Attainable Housing – Enables co-operative or shared ownership models, and expands housing options for low to moderate income residents

Honours Denman’s Tradition – Reflects a long history of communal and land-sharing living

Smaller Footprint – Less impact on land, water, and sensitive ecosystems

More Affordable Density – Increased housing options without full subdivision

How Could It Be Introduced?

Option 1: Site-by-Site Rezoning

• Update OCP policies to allow “cluster housing”.
• Set clear criteria (e.g. water, septic, site layout, affordability requirements, environmental constraints, cultural sensitivity)

Option 2: Pre-Zoning by LTC

• Identify and pre-zone suitable lots
• Consider “split zoning” on larger lots for cluster development in appropriate areas

Where Is Cluster Housing Suitable?

Cluster housing zoning cannot be applied to ALR lands, protected areas, or parks. Suitability criteria should include:

• Avoiding shorelines, riparian zones, steep slopes, and sensitive ecosystems
• Respecting areas of archaeological or Indigenous cultural significance
• Assessing groundwater and septic system capacity
• Ensuring access to services and amenities
• Mapping and assessment to guide site selection

Understanding Lot Coverage and Floor Area

Lot Coverage

Lot coverage refers to the percentage of a lot’s total area that is covered by buildings (the space buildings occupy on the ground). This is important for:

• Protecting open space
• Limiting impervious surfaces
• Maintaining Denman’s natural, rural character

Floor Area

Floor area refers to the total usable interior space of a building across all floors. This directly controls the actual size of a house or structure, influencing affordability and visual scale.

Current Policies:

• Maximum lot coverage on residential lots is currently set at 25%.
• There are no explicit maximum floor area restrictions for homes.

Proposed Options for Environmental Protection Through Lot Controls

Lot Coverage Restrictions
Options based on review of lot coverage across the Islands Trust Area:

Floor Area Restrictions
Floor area limits the total interior space of a building across all floors. It directly controls the overall size of a building.

• Recommended fixed maximum for principal dwelling on all lots (e.g. 250m²/2,690 ft²)
• On a 0.5-acre lot, this corresponds to about 6% lot coverage, reinforcing the importance of footprint limits
• Variances may be granted on a case-by-case basis, subject to review and approval by the LTC
• Alternatively, floor area limits could vary by zoning or property size (e.g., smaller homes on smaller lots)

Recommended Approach

Staff recommends adopting a combined approach that limits both lot coverage and gross floor area, with a maximum GFA of 250 m² for principal dwellings. This strategy ensures that buildings remain appropriately sized in both footprint and overall interior space. Limiting lot coverage helps protect open space, maintain the natural character of the area, and control impervious surfaces that impact drainage and ecology. Meanwhile, a fixed GFA cap discourages oversized homes, promotes modest and attainable housing.