Understanding UC2 Zoning

Understanding UC2 Zoning along Sutherland/Capri—Height, Density, and What Trades Off

If you own land (or are shopping for land) near Sutherland Avenue and Capri Street, you’ll hear “UC2” a lot. UC2 is Kelowna’s Capri/Landmark Urban Centre zone, and it’s meant for more housing + more mixed-use in a central area.

But UC2 isn’t one simple rule. The allowed height and density change depending on what the OCP map says your site is (like 3 storeys, 6 storeys, 12 storeys, etc.). 

This post explains what that means—and what you “trade off” as height and density go up.

What UC2 really controls

Think of UC2 as two main levers:

1) Density (FAR)

FAR is like a building “size budget.”
A higher FAR usually means more buildable floor area.

In UC2, the base FAR depends on your site’s mapped height area. Examples in the bylaw include:

• 3 storeys: 1.5 FAR

• 4 storeys: 1.5 FAR

• 6 storeys (and UC2gg lots): 1.8 FAR

• 12 storeys: 3.3 FAR

• 18 storeys: 4.9 FAR City of Kelowna

2) Height (storeys + metres)

UC2 height is also tied to mapped areas. Examples include:

• 3 storeys = 12.0 m

• 4 storeys = 18.0 m

• 6 storeys = 22.0 m

• 12 storeys = 44.0 m

• 18 storeys = 66.0 m 

And once you get into “26 storeys and up,” the bylaw points you to site-specific rules (like CD26 for Capri Centre). 

Bonuses: when you might get more FAR or height

UC2 has bonus density options in certain cases. For example:

• 6 storeys: up to +0.25 FAR

• 12 storeys: up to +0.5 FAR

• 18 storeys: up to +0.7 FAR 

There are also bonus provisions tied to rental-only or affordable housing, including an additional 0.3 FAR, and a rate of 0.05 FAR per storey for taller rental/affordable projects (12 storeys+).

Trade-off: bonuses usually mean you must meet extra requirements (design, housing form, approvals, or agreements). The bylaw shows the bonus exists—but your project team still has to prove you qualify.

The big trade-offs as you go taller and denser

Here’s the simple truth:

The more you ask for (height + FAR)…

You usually “pay” with more of these:

• Bigger costs (concrete towers, parking structures, elevators)

• More design rules (stepbacks, shadow, street feel, tower spacing)

• Longer approvals (more studies, more public attention)

• More risk (financing, construction timelines, market shifts)

The less you build (3–6 storeys)…

You usually get:

• Simpler builds (often wood-frame)

• Faster construction

• Less public pushback

• Lower “per square foot” risk

But you also get:

• Less total housing

• Less revenue potential per lot

• Sometimes land value feels “capped” because you can’t use the full upside of the Urban Centre.

A special case nearby: CD26 Capri Centre rules

Parts of the Capri area are guided by CD26 (Capri Centre), which has its own rules.

Examples from the bylaw page include:

• Max FAR: 2.6 City of Kelowna

• Height rules can vary by location on the site, including areas capped at 6 storeys (22 m), and areas allowing up to 22 storeys (70 m), with one building up to 26 storeys (82 m). 

• It also lists key setbacks, including a rule that portions above 6 storeys must be set back 6 m from certain streets, including Sutherland.

Trade-off: CD zones can unlock height, but they often come with tighter site rules and more detailed design conditions.

Who this matters to (ideal people for this topic)

This UC2 Sutherland/Capri topic is perfect for:

• Developers & builders (infill multifamily, mixed-use, rentals)

• Landowners who suspect their lot is worth more than a “normal house lot”

• Investors looking for “next decade” land plays near transit, jobs, and services

And it’s also relevant for nearby homeowners, because new height and density can change:

• traffic patterns

• noise during construction

• views and shadows

• future resale demand

Quick “Is my lot a fit?” checklist

If you want a fast first screen:

• Is the property clearly within the Capri/Landmark Urban Centre (UC2) area? City of Kelowna+1

• Does the OCP mapping show 3, 6, 12, or 18 storeys for your site? City of Kelowna

• Are you hoping for rental-only or affordable (possible FAR advantages)? City of Kelowna

• Is it in a CD area like CD26 with special rules? City of Kelowna+1

FAQs

Is UC2 the same everywhere in Capri/Landmark?

No. UC2 rules change based on the mapped height area (3, 6, 12, 18 storeys, etc.), which ties to density and height limits. 

What does FAR mean in plain English?

FAR is your buildable floor area budget. Higher FAR usually means you can build more total indoor space. UC2 sets different FAR levels at different height areas.

Can rental projects get extra density?

Yes, UC2 includes extra FAR options for rental-only or affordable housing, including an additional FAR amount and a per-storey rate for taller projects. 

For anyone along Sutherland / Capri planning to buy, sell, invest, or explore development, Mark & Maddie with Selling Kelowna Real Estate Group | eXp Realty Kelowna are the clear choice.
Ready to make your next move? Contact [email protected] or call/text 778-744-0872 for expert local insight.