The B.C. government is making changes to development cost charges (DCCs) to help developers manage costs and encourage housing construction.
Eligible projects now will be protected from increases to development cost charges for 24 months instead of the previous 12. This will help to ensure that homebuilders, future homebuyers, renters and tradespeople in Metro Vancouver will have more certainty that housing projects, which are planned or under construction, will continue to be built.
The change supports the Metro Vancouver Regional District’s eligibility for $250 million in federal infrastructure funding, while granting eligible homebuilders an extra year to access the lower development cost charge rates. Using federal funding in this way ensures that Metro Vancouver can continue to upgrade critical infrastructure without increasing costs for residents or future homebuyers.
“Development cost charges are essential for funding the critical housing enabling infrastructure and aligning to the commitment of growth paying for growth — such as water, wastewater treatment, and parks — that keeps our region livable, while balancing affordability. Allowing more time to continue paying 2024 rates offers developers more financial certainty for eligible developments, which can help to advance housing, support local jobs, and stimulate the economy,” said Mike Hurley, chair, board of directors, Metro Vancouver.
This builds on recent changes to another provincial regulation to further reduce the cost of delivering new homes for people by allowing B.C. homebuilders to delay paying 75 per cent of development fees as long as four years or until occupancy, whichever comes first.
“Extending the instream protection period for Metro Vancouver’s DCC increase is a meaningful step that reflects the realities of today’s development environment. Current high-cost conditions have placed significant pressure on project viability, and without this change, many projects would not have been able to proceed. This change demonstrates a practical understanding of the barriers facing the industry and helps ease some of the immediate pressure on projects, so they can move forward,” said Anne McMullin, president and CEO, Urban Development Institute.
