Province orders Oak Bay to change bylaws to meet housing targets

Housing Minister Ravi Kahlon has once again called out Oak Bay for not meeting its housing targets and is enforcing recommendations from an independent adviser under the Housing Supply Act.

Kahlon says Oak Bay is on track to fall short again by the end of the year.

In December, the municipality was one of two—West Vancouver was the other—to face criticism from Kahlon for not coming close to the targets set in 2023, when 10 municipalities were assigned objectives for new homes to be built over a five-year period.

In 2023, Oak Bay’s goal was 56 homes but only 16 were built—representing a completion rate of 29%. Under the province’s directive, the district must build 665 new homes by 2028.

In a letter sent to Oak Bay, Kahlon said the municipality was “not doing their part” to hit targets like other neighbouring communities, such as Victoria, which managed a 224% completion rate. Oak Bay Mayor Kevin Murdoch said he warned Kahlon prior to December that the municipality would fall short, but Kahlon has denied this conversation.

In February, the ministry appointed advisers for both Oak Bay and West Vancouver to assess the municipalities for two months and identify changes needed to boost housing development.

Murdoch argued in his letter to Kahlon that "local governments set policy conditions to enable housing, not build it." Murdoch claims there is zoning in Oak Bay for 15K additional units, but not enough developers are looking to build.

Recommendations for Oak Bay

The ministry appointed James Ridge in January as Oak Bay’s adviser, who identified key changes to be made. In his report, he wrote the advisery team found that Oak Bay is "making reasonable efforts to meet the housing targets," but its "longstanding reputation for being anti-development" is a hinderance to housing approval. The report also said it was accurate that the municipality has planned "units in the pipeline."

Two of Ridge’s recommendations, including changing "seriously outdated parking bylaws," will be enforced by the ministry under the Housing Supply Act.

By the end of January 2026, Oak Bay must:

• amend its Development Application Procedures bylaw to delegate minor variances to municipal staff;
• amend its Parking Facilities bylaw to a minimum of one parking stall per unit (the bylaw currently requires a minimum of more than one parking stall per unit)

The province has given Oak Bay 30 days to respond before the directives are issued.

Carnarvon Park doesn’t need to be earmarked for housing

In his December letter, Kahlon questioned why a proposal for 40 units of rental housing at Carnarvon Park was rejected. Last May, the municipality considered building units above a pickleball court as an option for the park’s planned redesign, but ultimately scrapped the idea after it received the least amount of public support.

After reviewing the situation, Ridge told Kahlon that a Carnarvon development did not need to be pushed through, which Kahlon agreed with.

Kahlon said he would not enforce alternative options for a similar-sized development in the area, but said he encourages Oak Bay council to “consider these proposed options for their potential to provide much-needed housing.”

"Significant opportunities for development" were flagged at two sites: a 40-acre property near UVic and a lot where Oak Bay Lodge used to be located.