Housing and Municipal Affairs Minister Ravi Kahlon announced on Wednesday (July 2) that B.C. is altering development cost charge collection for large projects so that 75 per cent of the fees are not due until occupancy.
This aims to help large projects get off the ground by reducing the initial cost for developers.
Municipalities will still be able to collect 25 per cent of development cost charges up front, and this only impacts projects in which these charges are more than $50,000. Surety bonds will be used to ensure municipalities get paid. The changes come into effect on Jan. 1, 2026.
"It doesn't affect the local government much at all by collecting a time of occupancy versus right up front," said Delta Mayor George Harvie. "They don't even connect to the infrastructure until the time of occupancy. So this makes just common sense."
Municipalities use development cost charges to pay for infrastructure upgrades such as sewers, sidewalks and water hookups.
Kahlon said the increasing cost of building materials and decreasing cost of housing mean developers need a bit more leeway to keep projects viable.
"We've seen new home prices come down across British Columbia," Kahlon said. "That is good news for renters. It's good news for people who are buying their first home, but it's a challenge for those who are building homes, because when those prices come down, a lot of the projects, they don't pencil as well."
More to come.
