P.E.I. changing its Planning Act to allow more housing density in rural areas

Some people who work in construction on P.E.I. are applauding a policy move by the provincial government to allow higher density builds in rural subdivisions.

Changes to the province's Planning Act will scrap current rules that say any new subdivisions with more than five lots need to have 10 per cent of land dedicated as open green space.

Starting Thursday, that 10 per cent rule will only apply to new subdivisions in rural P.E.I. with more than 20 lots. 

"I do think that'll help out a lot," said Randy Mitchell of Anchored Construction. 

"That'll probably promote more subdivisions that could be larger."

Many unincorporated rural areas and smaller communities fall under the jurisdiction of P.E.I.'s Planning Act, whereas municipalities with their own planning rules do not.

In towns like Three Rivers, where Mitchell is currently working on a development, the density rules are relatively flexible — meaning he doesn't need to leave much land as green space.

Having similar leniency at a provincial level will likely make developments in rural areas more enticing to builders, he said. 

"Having the ability to sell two extra lots is definitely a huge cost benefit for us as a contractor, and probably trickles down to the end user," MItchell said.

In a province faced with a housing crisis, land in urban areas in short supply and the cost of building still high, this policy change is a necessary one, said the head of the Construction Association of P.E.I.

"Any opportunity we have to reduce the cost and build more on that single piece of property, or multiple pieces of property, increases the ability to build more units, increase density, and reduce costs, so, it's a really good move forward," Sam Sanderson said.

Right across Canada, the federal government is encouraging larger municipalities to loosen their density rules and allow for more multi-unit buildings, with the promise of funding in return.

Some larger P.E.I. communities have taken the bait. 

A deal inked in February will see Ottawa give the City of Charlottetown $10 million through the Housing Accelerator Fund as part of an agreement to fast-track 300 housing units over the next three years.