THE CORPORATION OF THE CITY OF PENTICTON DEVELOPMENT COST CHARGES REDUCTION BYLAW NO

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1 This is a consolidated bylaw prepared by The Corporation of the City of Penticton for convenience only. The city does not warrant that the information contained in this consolidation is current. It is the responsibility of the person using this consolidation to ensure that it accurately reflects current bylaw provisions. THE CORPORATION OF THE CITY OF PENTICTON DEVELOPMENT COST CHARGES REDUCTION BYLAW NO Consolidated for convenience only. Amended by Bylaw (August 16, 2010) Amended by Bylaw (January 23, 2012) Amended by Bylaw No (April 22, 2014)

2 THE CORPORATION OF THE CITY OF PENTICTON BYLAW A BYLAW OF THE CORPORATION OF THE CITY OF PENTICTON TO PROVIDE A REDUCTION OF DEVELOPMENT COST CHARGES FOR NOT-FOR-PROFIT RENTAL HOUSING AND FOR DEVELOPMENTS DESIGNED FOR LOW ENVIRONMENTAL IMPACT WHEREAS the Council has adopted a Development Cost Charges Bylaw; and WHEREAS the Council may, under s of the Local Government Act, reduce a development cost charge for an eligible development, as defined by bylaw, by an amount or rate of reduction described in the bylaw; NOW THEREFORE the Council of The Corporation of the City of Penticton, in open meeting assembled, enacts as follows: CITATION 1. This bylaw may be cited as City of Penticton Development Cost Charges Reduction Bylaw No ADMINISTRATION 2. The Director of Development and Engineering Services shall administer this bylaw. DEFINITIONS 3. Unless the context otherwise requires, the definitions in the Local Government Act, Land Title Act and Interpretation Act shall apply in the interpretation of this bylaw, and the following definitions also apply: Building Bylaw means City of Penticton Building Bylaw No (1994) as amended or superseded. Building Permit means permission or authorization in writing from the Chief Building Official to perform work regulated by the Building Bylaw. Chief Building Official means the person appointed to that position or a person authorized by the Chief Building Official to perform duties under this bylaw. City means The Corporation of the City of Penticton. Council means the Council of the City.

3 Development Cost Charges Bylaw means City of Penticton Development Cost Charges Bylaw No as amended or superseded. Director of Development Services means the person appointed to that position or a person authorized by the Director to perform duties under this bylaw. (# ) Economic Investment Zone Bylaw means City of Penticton Economic Investment Zone Bylaw No as amended or superseded. Occupancy Permit means permission or authorization in writing from the Chief Building Official to occupy a building for its intended purpose. Person at risk of homelessness means a person and members of their immediate family with whom they reside, whose net family income has been less than the median family income for the City of Penticton, as determined by Statistics Canada, for a minimum of four years and is also: a) a single parent, b) a person over the age of 55, c) a person designated as a person with a disability under Section 2 of the Employment and Assistance for Persons with Disabilities Act (B.C.), d) a person receiving assistance under the Employment and Assistance Act (B.C.) or similar welfare assistance from the provincial or federal government, e) a person whose net family income falls below the most current, After Tax Low Income Cut-offs published by Statistics Canada, or f) a person who meets affordable housing eligibility criteria or a definition of a person in need of affordable housing, developed by Canada Mortgage and Housing Corporation or B.C. Housing Management Commission which the City has endorsed for the purposes of this bylaw. (# ). Sustainability Checklist means the form attached as Schedule A to this Bylaw. (# ) Registered Professional means a professional engineer or architect in good standing in the province of British Columbia with knowledge of and experience in the design and construction of low environmental impact buildings. DEVELOPMENT COST CHARGE REDUCTIONS 4. Development cost charges payable under Schedule A1, A2 or B Development Cost Charge Bylaw may be reduced by: a. 100% for an eligible development under Section 5(a); and b. 50% for an eligible development under Section 5(b). (# ) 5. An eligible development is, for the purposes of this bylaw, one of the following: a. Rental housing including supportive living housing and services ancillary to such housing and subdivision lots and strata lots on which such housing is to be constructed, subject to a Housing Agreement under Section 905 of the Local Government Act, that:

4 i. limits the form of tenure of the housing units to rental tenure, notwithstanding that the units may have been subdivided under the Strata Property Act; ii. requires the housing units to be rented for an initial monthly rate that is less than the median market rent levels most recently published by Canada Mortgage and Housing Corporation as of the date of first reading of the bylaw authorizing the housing agreement, and limits the rate of increase of the monthly rate; iii. restricts occupancy of the housing units to persons at risk of homelessness and support services providers; and iv. is valid for a period of not less than 20 years. (# ) b. A project that a Registered Professional has confirmed at the building permit stage has been designed to and is capable of achieving a score of 40 or higher on the Sustainability Checklist, appended as Schedule A to this Bylaw, and that a Registered Professional has confirmed the score at the time of issuance of an Occupancy Permit. (# ) 6. A development cost charge reduction for an eligible development described in Section 5(a) shall be effected at the time of final approval of subdivision creating the lots on which the housing units are to be constructed, the issuance of a Building Permit authorizing construction of the housing units, or in the case of phased developments, the issuance of a Building Permit authorizing the construction of each phase of the development containing the housing units. 7. A development cost charge reduction for an eligible development described in Section 5(b) may be provisionally approved by the City upon the provision and satisfactory review by the City of a completed Sustainability Checklist submitted under the seal and signature of the Registered Professional for the project indicating that the development has been designed to and is capable of achieving a score of 40 or higher. (# ) 8. A development cost charge reduction for an eligible development described in Section 5(b) shall be effected as follows: a. Prior to issuance of a Building Permit the applicant shall: i. Provide a Schedule A, Sustainability Checklist by the Registered Professional for the project that shows that the project has been designed to achieve and is capable of achieving a score of 40 or higher, ii. Pay ½ of the applicable development cost charges, either as a lump sum or in installments in accordance with Section 11, and iii. Grant to the City a covenant under s.219 of the Land Title Act in the form attached as Schedule B, or submit to the City a bond (cash or letter of credit) in the amount of ½ of the applicable development cost charge. (Bylaw No ) b. Upon provision and satisfactory review by the City of a completed Sustainability Checklist submitted under the seal and signature of a Registered Professional for the project indicating that the development has achieved a score of 40 or higher,

5 the City shall discharge the covenant charged against the property under Section 8. a. iii or return the bond as the case may be. (Bylaw No ) 9. In the event that the Sustainability Checklist submitted as described in Section 8(a)(i) does not indicate that a score of 40 or higher is achievable, the project is not an eligible project under Section 5(b) of this Bylaw. (# ). 10. In the event that the Sustainability Checklist referred to in Section 8(b) does not indicate a score of 40 or higher or is not submitted to the City prior to the issuance of an Occupancy Permit, the project is not an eligible project under Section 5(b) for this Bylaw and the owner shall pay to the City on or prior to the date of first occupancy of the Development in relation to which the form has been or should have been provided, all unpaid development cost charges that would have been payable had the building permit applicant not sought a development cost charge reduction under Section 5(b). Development Cost charges Paid By Installments 11. Where a Development Cost Charge is reduced under this bylaw, an applicant may pay the reduced development the charge in installments equal to 1/3 rd the value of the reduced Development Cost Charge. Such installments shall be paid in accordance with the Development Cost Charges (Installments) Regulation. 12. Where a Development Cost Charge is reduced to $50,000 or less under this bylaw, the reduced development cost charge may be paid in installments in accordance with the Development Cost Charges (Installments) Regulation. READ A FIRST TIME this 15 th day of February, READ A SECOND TIME this 15 th day of February, READ A THIRD TIME this 15 th day of February, RESCINDED THIRD reading this 25 th day of October, 2010 READ A THIRD TIME as amended this 25 th day of October, 2010 ADOPTED this 27 th day of October, Original signed by Dan Ashton, Mayor Original signed by Cathy Ingram, City Clerk Manager of Legislative Services

6 Schedule A Schedule A Sustainability Checklist Project Name: Address: Applicant Name: Address: Signature: SUBMITTED FOR: BUILDING PERMIT: OCCUPANCY: SUSTAINABILITY CRITERIA Site Design On-Site Storm Water Treatment (min. 75% Total Suspended Solids Removal and use of oil grit separators) Permeable surfaces - Minimum 25% of site area permeable Possible Points - Minimum 50% of site area permeable On-Site Storm Water Retention 3 Contaminated Site Re-Development 20 Alternative Transportation - locate development within 800m of bus transit stop - Bicycle / Shower / Changing facilities Designated carpool parking is provided. 3 Vegetation - Retention of trees and vegetation on-site 2 Waste Management - Construction materials 3 - Building recycling facilities 2 - Office/Dwelling unit recycling facilities 2 Development located within 800 m of a public park or trail 2 (Industrial areas only) Landscaped areas that have drought resistant shrubs or trees for the development is provided. Building Technology Green Roof (Vegetated) - 50% of roof area OR - 75% of roof area or 5 High Reflectance Cool Roof 3 Solar Thermal Air Preheat 3 Energy Use - 10% -25% < MNECB OR - 25% < MNECB 3 or 5 Solar Hot Water - Space Heating 3 Solar Hot Water - Domestic Use 3 Solar Shading Devices 2 Passive Solar Ventilation 3 Displacement Ventilation 3 Photovoltaics 4 Geoexchange System 3 Y N Point Total

7 Wind Turbines 3 Warranty Level on Roof - 25 years OR 1 or years 3 Dust Control Bag house utilization 5 Off peak electricity has been considered in the design 3 Significant environmental features are maintained and /or 3 enhanced Economic Development Permanent, local employment is created during construction. 6 Direct employment to be created after construction. 6 Water Conservation Rainwater Re-Use 3 Rainwater Collection - Irrigation 3 Xeriscaping No irrigation 3 Water Efficient Native Plant Landscaping 2 Low Flow Fixtures (kitchen, shower, etc) 2 Toilets - Single flush (4.5 liter) OR 1 or - Dual flush 2 Innovative wastewater technologies used (e.g. low consumption 4 fixtures, grey water systems, storm water irrigation Indoor Environment Low or Non-toxic Products - Adhesives & Sealants - Paints and Coatings - Carpet - Composite Wood & Laminate Adhesives Carbon Dioxide Sensors 1 HVAC System Filters - Electronic air cleaner - HEPA filtration system 1 2 Energy Star Appliances (dishwasher, refrigerator, stove, dryer, etc) 2 Other Innovation - Development adds other unique or innovative features not covered by the Schedule A checklist. CALCULATE TOTAL POINTS 10 (max) Note 1: Eligibility is determined by obtaining a minimum of 40 points A random audit of up to 5 credits may be performed by the City of Penticton to ensure conformance.

8 BUILDING PERMIT STAGE CERTIFICATION BY REGISTERED PROFESSIONAL I acknowledge that the development identified on page 1 of this form has been designed to and is capable of incorporating each of the proposed Sustainability Checklist criteria identified in the right hand column of Pages 1 and 2 of the form. This confirmation is provided only for the purpose of determining eligibility of the development for a waiver or reduction of development cost charges. Date Signature of Registered Professional Seal of Registered Professional ` OCCUPANCY STAGE I acknowledge that the development as identified on page 1 of this form, as constructed, incorporates each of the Sustainability Checklist criteria identified in the right hand column of Pages 1 and 2 of the form. This confirmation is provided only for the purpose of determining eligibility of the development for a waiver or reduction of development cost charges. Date Signature of Registered Professional Seal of Registered Professional

9 Criteria Definitions SITE DESIGN: On-site Stormwater Treatment All stormwater runoff is treated prior to discharge to the downstream system, achieving a minimum standard of 75% Total Suspended Solids (TSS) removal. Appropriate treatment technologies include oil/grit separators, wet ponds/wetlands, and stormwater source control practices (bioretention, bioswale, porous pavement, etc.). Permeable Surface Minimum 25% OR 50% of site area (including roofs) to be equipped with permeable materials capable of absorbing a minimum 15mm of precipitation over 24 hours without release to downstream system. On-site Stormwater Retention No more than 10% of annual precipitation leaves the site as runoff, on an average basis. Runoff volume is reduced through capture and reuse and infiltration strategies (bioretention, porous pavement, green roof, etc.). Contaminated Site Re-Development The applicant must submit documentation to demonstrate that the site WILL be suitable for the intended use per the standards applied by The British Columbia Ministry of the Environment. Applicants shall provide documentation that: 1. Confirms that the site is or was previously contaminated; AND 2. Demonstrates that the site will be suitable for the intended use. Note: All documentation shall be prepared by a qualified professional and shall be reviewed to the satisfaction of The British Columbia Ministry of the Environment and The Corporation of the City of Penticton. Alternative Transportation Provide secure bicycle storage, with convenient changing/shower facilities for 5% or more of regular building occupants AND/OR locate the building within 800m walking distance of a bus transit stop. Designated carpool parking is provided Site plan to show designated parking spaces for car or van pool equal to 10% of the total number of non-visitor parking spaces. Vegetation Retention and protection of onsite vegetation outside of the building envelope. On greenfield sites, limit site disturbance including earthwork and clearing of vegetation to 12 meters (40 feet) beyond the building perimeter, 1.5 meters (5 feet) beyond primary roadway curbs, walkways and main utility branch trenches, and 7.5 meters (25 feet) beyond constructed areas with permeable surfaces (such as pervious paving areas, stormwater detention facilities and playing fields) that require additional staging areas in order to limit compaction in the constructed area. Waste Management Construction materials Recycle or salvage 50% of construction and demolition waste, excluding excavated soil, from the site. Designate a specific area on the construction site for recycling. Building recycling facilities Provide an easily accessible area that serves the entire building and is dedicated to the separation, collection and storage of materials for recycling (paper, cardboard, glass, metals, plastics 1-7, etc). Dwelling unit recycling facilities Provision of built in easy to use recycling collection system in each dwelling unit. BUILDING TECHNOLOGY: Green Roof Minimum 50% OR 75% of building footprint made up of approved Intensive or Extensive green roof system (at least 50 mm growing medium depth) supporting vegetation.

10 High Reflectance Cool Roof Minimum 75% of building footprint features high albedo roof membranes with EPA Energy Star Rating. Solar Thermal Air Preheat Minimum 10% of solar exposed wall or roof area [direct sunlight from 10am to 3pm] is equipped with solar thermal air preheating system. Energy Use Applicant to provide building energy use modeling study demonstrating that building energy consumption will be 10% - 25% OR greater than 25% less than efficiency standard described in the current Model National Energy Code for Buildings (MNECB). Applicant to provide energy modeling results with Building Permit application for verification. Solar Hot Water, Space Heating Building is equipped with an approved solar thermal water system connected to hydronic space heating system. Solar Hot Water, Domestic Use Building is equipped with an approved solar thermal water system connected to domestic hot water supply or (for industrial users) process hot water supply system(s). Solar Shading Devices Building is provided with solar shading devices to reduce the impact of solar penetration. Solar shading devices are made of any number of materials and configurations that are securely fastened to the exterior of a building in order to reduce solar heat gain and subsequently reduce cooling costs or replace the need for air conditioning. Passive Solar Ventilation Building mechanical system is supplemented by a professionally designed passive solar system to move air; double skin systems and solar chimneys included. Displacement Ventilation Building is designed so at least 50% of conditioned space is ventilated via displacement ventilation system. Photovoltaics Building has approved photovoltaic array installed and connected to electrical system. Minimum array size to qualify must be 2 kw rated capacity. Geoexchange System Building employs Geoexchange system to supply service heat and/or air conditioning. For industrial and recreational buildings, process requirements (i.e. swimming pool heating in combination with refrigerating ice surfaces) are also eligible. Wind Turbines Building has approved wind turbine installed on-site and connected to electrical system. Minimum turbine size to qualify must be 2 kw rated capacity. Warranty Level on Roof Provide confirmation that the roof proposed for the building has a warranty for 25 years OR 30+ years. WATER CONSERVATION: Rainwater Re-Use Project equipped with code compliant plumbing system designed to reclaim rainwater sources from building for re-use as non-potable water source. Rainwater Collection Irrigation - Use only captured rain and/or recycled site water to eliminate all potable water use for site irrigation (except for initial watering to establish plants) OR do not install permanent irrigation systems. Xeriscaping All landscaped areas on the site shall require no potable water for irrigation (except for initial watering to establish plants). Water Efficient Landscaping - Provide native plants and shrubs within all landscaped areas on the site.

11 INDOOR ENVIRONMENT: Low or Non-toxic Products Building has been constructed with low or non-toxic Adhesives & Sealants, Paints and Coatings, Carpet, Composite and/or Wood & Laminate Adhesives that meet Green Guard, Green Seal, Carpet and Rug Institute Green Label and/or EcoLogo requirements, as applicable. Carbon Dioxide Sensors Permanent Carbon Dioxide sensors are located throughout in all regularly occupied spaces in commercial/institutional building. HVAC System Filters - Electronic air cleaners OR a HEPA filtration system has been installed within the building. Low Flow Fixtures (kitchen, shower, etc) The entire building contains low flow fixtures. Lavatories must be 6.8 LPM or less Shower heads must be 7.5 LPM or less Kitchen faucets must be 8.3 LPM or less Toilets Toilets within the development are either Single flush (4.5 liter) or Dual flush (6/3 liter). Energy Star Appliances (dishwasher, refrigerator, stove, dryer, etc) provide installation information confirming purchase of the Energy Star Appliances for all relevant areas of the building. Dust Control Bag house utilization Designed to handle heavy dust loads, a dust collector system consists of a blower, dust filter, a filter-cleaning system, and a dust receptacle or dust removal system. It is distinguished from air cleaners which use disposable filters to remove dust. Off Peak Electricity has been considered in the design Systems in place encourage use of off peak electrical demand. During off peak hour s electrical demand is considered to lower than in peak hours where the overall energy consumption is more costly to supply. Significant environmental features are maintained and / or enhanced Innovative energy and environmental systems are in place and are incorporated in the overall design of the new project. i.e. (existing mechanical systems or natural features (trees / vegetation / etc) ECONOMIC DEVELOPMENT: Permanent, local employment is created during construction provide evidence that 75% or greater of the contractors being used during the construction of the development are from Penticton. The respective contractor must have a Business License in the City of Penticton. Direct employment to be created after construction That the new development creates 10 or more new employment opportunities at the business. Evidence will need to be provided showing the organizational chart for the business showing the number of employees. OTHER: Unique or innovative environmentally sustainable features not covered by the Schedule A checklist can be applied, to the satisfaction of the Director of Development Services. Points may range from 1-5, depending on the feature proposed, however, no more than 10 points may be attained through this option in achieving the 40 point requirement.

12 Addition of new SCHEDULE B, as follows (# ): FORM OF S. 219 OCCUPANCY COVENANT

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