To fund transit expansion projects, facilitate affordable housing at transit stations, and provide a high level of transit service, TransLink has been investigating Land Value Capture (LVC) as a means of raising revenue. TransLink commissioned this study to better understand how LVC mechanisms intended to fund transit could impact other regional goals, namely housing affordability. Leading Mobility’s deep understanding of TransLink and the Metro Vancouver area made the firm a valuable partner to the Keesmaat Group in the research, writing, and consultative process for this report. The report’s analysis supports a coordinated approach to Metro Vancouver’s goals in both housing affordability and high-quality regional transit.

Due to the complex nature of the research question, this report covered a wide range of topics including:

1. Why affordable housing matters to transit delivery;

2. What LVC is and how it relates to housing affordability and transit investments;

3. How transit investments shape land value;

4. Identification of applicable LVC mechanisms such as density bonusing, development cost charges, benefitting area tax, property transfer tax, and community amenity contributions;

5. An assessment of each of the LVC mechanisms for their ability to generate revenue and advance regional housing affordability goals; and

6. The limits of LVC to fund transit and affordable housing.

The findings of the report indicated that, of the mechanisms examined, density bonusing had the greatest potential to spur affordable housing delivery in a timely manner on rapid transit corridors.  Recommendations from this report informed the composition of revenue tools required for the Transport 2050: 10-year priorities for transit service expansion and growth in Metro Vancouver.

Assessing the Impacts of Potential Land Value Capture Mechanisms on Affordable Housing and Affordability was presented to the Metro Vancouver Mayors’ Council for consideration and discussion in October 2021.