TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: November 16, 2026 Report No. DEV-26-047
TO: Council
FROM: Alex Tang, Planner and Bill Brown, Director of Development Services
SUBJECT: Housing Agreement Bylaw Amendment and Covenant Modification - 664 Admirals Road
RECOMMENDATION:
Recommendation
That Council:
1) Give first, second, and third reading to Housing Agreement Bylaw, 2018, No. 2937, Amendment Bylaw [No. 2], 2026, No. 3196; and
2) Approve the modifications to the Section 219 Covenant CA6919940 as outlined in Staff Report No. DEV-26-047 upon receipt of the monetary contribution for the Township’s Public Art Reserve Fund, the Township’s Active Transportation, and the bus passes for the residents, and authorize the Mayor and Corporate Officer to execute the necessary LTSA documents and register a Notice of the Housing Agreement and the Covenant Modification on title.
Body
EXECUTIVE SUMMARY:
The Department of National Defence is intending to purchase 664 Admirals Road to provide rental accommodation for military members and their families. The applicant is seeking to amend the Housing Agreement and modify the S.219 Covenant to exempt the Federal Crown from these requirements.
BACKGROUND:
Chronology:
• July 16, 2018 - Housing Agreement Bylaw, 2018, No. 2937 adopted
• July 12, 2021 - Housing Agreement Bylaw, 2018, No. 2937, Amendment Bylaw [No. 1], 2021, No. 3032 adopted
• September 28, 2026 - Housing agreement amendment and covenant modification application received
Housing Agreement:
Housing Agreement Bylaw, 2018, No. 2937 as amended requires:
• Provision of a minimum of 6 affordable dwelling units consisting of
o 1 Studio unit,
o 3 One-bedroom units, and
o 2 Two-bedroom units.
• Affordable dwelling units must be occupied by households with a gross annual income at or below the BC Housing Income Limits for the Victoria region.
• Affordable rent is defined as no more than 30% of the gross household annual income.
• Provision of 4 special needs residential units constructed for wheelchair accessibility
• Other than restricting short-term rentals of less than 30 days, all of the dwelling units are available as rental housing rented under the terms of a residential tenancy agreement that complies with the provisions of a Residential Tenancy Act.
Section 219 Covenant:
Section 219 Covenant CA6919940 includes the following requirements:
• Provision of 10 units with accessibility features as detailed in Schedule ‘B’ of the Section 219 Covenant [Appendix D].
• Provision of a minimum of 6 affordable dwelling units consisting of
o 1 Studio unit,
o 3 One-bedroom units, and
o 2 Two-bedroom units.
• The building to be constructed to include:
o 6 3-bedroom dwelling units;
o 43 2-bedroom dwelling units;
o 27 1-bedroom dwelling units;
o 7 studio dwelling units; and
o a glass façade at street level that would allow views of the exterior courtyard from Admirals Road
• Construction of a sidewalk on the eastern side of Constance Avenue from the subject property to Astle Street
• Construction of a sidewalk on the northern side of Astle Street from Admirals Road to Constance Avenue
• The planting of three boulevard trees on the east side of Constance Avenue
• The planting of three boulevard trees on the west side of Constance Avenue
• Contribution of $75,000 towards the Township’s Public Art Reserve Fund
• Provision of one-year BC Transit bus passes for the Victoria Regional Transit System to all the residents
The Department of National Defence is intending to purchase 664 Admirals Road to provide rental accommodation for military members and their families. The applicant is seeking to exempt the Federal Crown from the requirements of Housing Agreement Bylaw, 2018, No. 2937 as amended and Section 219 Covenant CA6919940.
Both Housing Agreement Bylaw, 2018, No. 2937, Amendment Bylaw [No. 2], 2026, No. 3196 and the draft covenant modification contain clauses that would exempt the Federal Crown from their restrictions, obligations and requirements. The application of this exemption shall commence on the date the Federal Crown acquires ownership of the land and shall continue as long as the Federal Crown remains the registered owner.
Upon a transfer of ownership of the land by the Federal Crown to any entity other than an agency or entity of the Government of Canada, both the Housing Agreement and the Section 219 Covenant will apply.
ANALYSIS:
The building at 664 Admirals Road is being constructed and nearing completion.
The building contains:
• 10 dwelling units with accessibility feature
• 6 3-bedroom dwelling units;
• 43 2-bedroom dwelling units;
• 27 1-bedroom dwelling units;
• 7 studio dwelling units; and
• a glass façade at street level that would allow views of the exterior courtyard from Admirals Road
The applicant intends to contribute prior to execution of the S.219 Covenant:
• $75,000 towards the Township’s Public Art Reserve Fund;
• One-year BC Transit bus passes for the Victoria Regional Transit System to all the residents; and
• A monetary contribution for the Township’s active transportation ($275,000).
o The contribution is being proposed to offset the covenant requirement to establish a sidewalk along the north side of Astle and the east side of Constance from Astle Street to the development frontage. This contribution includes provisions for the delivery of these works by the Township or a contractor retained by the Township.
o As there are potential unknowns when delivering a project, this contribution will include:
§ the costs of the works;
§ engineering design fees for contract administration and inspection;
§ project contingency;
§ Township administration costs; and
§ other potential project risks (archaeological, soil testing, etc).
By fulfilling these items required by the covenant, the only item that is not provided would be the 6 affordable housing units.
Department of National Defence protects low-income Canadian Armed Forces members by capping residential housing unit shelter charges at 25% of the gross monthly household income. While the Canadian Forces Housing Agency aligns standard base rents with local civilian market rates, members facing affordability constraints can submit an official application to reduce their monthly rent to meet this 25% threshold.
This is an ideal location for housing for the Department of National Defence and will provide much needed housing for its members. The main drawback for the community is that the affordable housing units will not be available to the general public.
FINANCIAL IMPACT:
There are no financial implications associated with the proposed housing agreement amendment and covenant modification.
OPTIONS:
1. That Council give first, second, and third reading to Housing Agreement Bylaw, 2018, No. 2937, Amendment Bylaw [No. 2], 2026, No. 3196, approve the proposed modifications to Covenant CA6919940 upon receipt of the monetary contribution for the Township’s Public Art Reserve Fund, the Township’s Active Transportation, and the bus passes for the residents, and authorize the Mayor and Corporate Officer to execute the necessary LTSA documents and register a Notice of the Housing Agreement and the Covenant Modification on title.
2. That Council postpone consideration of Amendment Bylaw No. 3196 and modifications to Covenant CA6919940 pending receipt of additional information.
3. That Council defeat Amendment Bylaw No. 3196 and modifications to Covenant CA6919940.
COMMUNICATIONS/ENGAGEMENT:
The Local Government Act does not require that notification be provided when a municipality is considering approval of a Housing Agreement Bylaw.
TIMELINES & NEXT STEPS:
Housing Agreement Bylaw, 2018, No. 2937, Amendment Bylaw [No. 2], 2026, No. 3196 will come back to Council for adoption.
REPORT REVIEWED BY:
1. Bill Brown, Director of Development Services, Reviewed
2. Deb Hopkins, Director of Corporate Services, Reviewed
3. Ian Irvine, Director of Finance, Reviewed
4. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Appendix A: Proposed Housing Agreement Bylaw, 2018, No. 2937, Amendment Bylaw [No. 2], 2026, No. 3196
2. Appendix B: Adopted Housing Agreement Bylaw, 2018, No. 2937, Amendment Bylaw [No. 1], 2021, No. 3032
3. Appendix C: Draft Modification to Section 219 Covenant CA6919940
4. Appendix D: Registered Section 219 Covenant CA925431 (modification of CA6919940)
5. Appendix E: Notice of Sale from the Department of National Defence
6. Appendix F: Letter of Intent from the Department of National Defence