Transit-Oriented Areas on Vancouver Island: Where Higher Density Is Coming

BC's Transit-Oriented Areas (TOA) legislation, passed as Bill 47 in November 2023, mandates significant density increases around major transit exchanges across the province. For Vancouver Island, this means properties near designated bus exchanges could see dramatic increases in permitted building height and density. Here's what property owners and investors need to know.

Transit exchanges like this one are at the centre of BC's TOA legislation, which mandates increased density within a 400-metre radius.

What Are Transit-Oriented Areas?

TOAs are zones designated around major transit stations and bus exchanges where the province requires municipalities to allow significantly higher density than standard zoning would permit. The goal is to concentrate housing near transit infrastructure, reducing car dependency and making better use of existing public transit investment.

Unlike SSMUH rules that apply broadly across Greater Victoria, TOAs target specific locations where transit infrastructure already exists, creating focused pockets of higher-density development opportunity. Our SSMUH vs Transit-Oriented Areas comparison explains the key differences between these two frameworks.

Vancouver Island's Designated TOA Sites

Seven Vancouver Island municipalities are required to designate Transit-Oriented Areas. The specific bus exchanges designated under provincial legislation include:

TOA Density Requirements

For bus exchanges outside Metro Vancouver (which includes all Vancouver Island TOAs), the provincial minimums are:

TOA density is tiered by distance from the transit exchange, with highest density within 200 metres and stepping down to 400 metres.

These are minimum requirements, and municipalities can choose to allow even greater density. The key takeaway is that properties within 400 metres of a designated exchange must be permitted for significantly more development than traditional single-family zoning would allow.

Parking Requirements Eliminated

One of the most significant provisions: municipalities cannot impose minimum residential parking requirements within TOA zones (except for accessible parking). This dramatically changes the economics of development by:

• Reducing construction costs (underground parking can cost $50,000 to $80,000 per stall)
• Allowing more buildable area on constrained lots
• Making smaller-scale developments financially viable
• Encouraging transit use and active transportation

The UVic Exchange Opportunity

Neighborhoods near major transit exchanges are seeing a mix of traditional single-family homes alongside newer multi-unit developments, a transition the TOA legislation is designed to accelerate.

The UVic Exchange is particularly noteworthy for development potential. As one of Greater Victoria's busiest transit hubs, it anchors a network of 14 bus routes serving students, faculty, hospital staff (Royal Jubilee Hospital is nearby), and the broader Gordon Head community. The surrounding area includes:

• Established single-family residential neighborhoods with larger lots
• Proximity to the University of Victoria campus, a major employment and education centre
• Nearby Royal Jubilee Hospital, one of the region's largest employers
• Existing commercial services along Shelbourne Street and Cedar Hill Cross Road
• Parks, schools, and community amenities

For property owners within 400 metres of the UVic Exchange, this creates a transformative opportunity. A standard single-family lot that was previously limited to one home plus a secondary suite could now potentially support a 6-storey, 3.5 FAR development (if within 200m) or a 6-storey, 2.5 FAR development (if within 200-400m). Our guide to assessing development potential in Victoria, BC walks through how to evaluate these opportunities. You'll also want to assemble the right team of development consultants to move from analysis to execution.

Transit-oriented development typically blends ground-level commercial space with residential units above, creating walkable, mixed-use neighborhoods.

Municipalities Required to Designate TOAs

Seven Vancouver Island municipalities must comply with TOA legislation:

1. Victoria, Legislature Exchange
2. Saanich, UVic Exchange, Uptown Exchange, Royal Oak Exchange
3. Langford, Langford Exchange
4. Colwood, Colwood Exchange
5. View Royal, View Royal Exchange
6. Nanaimo, Country Club, Woodgrove, VIU, Downtown exchanges
7. Lantzville

Interaction with SSMUH

TOA legislation works alongside, and in addition to, the Bill 44 density rules covered in Part 1 of this series. In practice:

• Properties outside both TOA and SSMUH zones follow existing municipal zoning
• Properties in SSMUH areas (but outside TOAs) can build up to 4 units, or up to 6 units near frequent transit bus service
• Properties within TOA zones get the highest density allowances (up to 10 storeys)
• Where SSMUH and TOA overlap, the more permissive standard applies

Key Government Resources

• BC Government: Transit-Oriented Development Areas
• Provincial Policy Manual: Transit-Oriented Areas (PDF)
• District of Saanich: Transit-Oriented Areas