Government has made regulatory changes that protect homebuilders' projects from increases in Metro Vancouver Regional District development cost charges, freeing up hundreds of millions of dollars in capital to invest in additional new homes.
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.
"There's no question that global financial uncertainty and rising costs of goods and skilled labour have challenged the housing market in cities all over the world," said Ravi Kahlon, Minister of Housing and Municipal Affairs. "In B.C., we're looking for new ways every day to make sure people can live in homes they can afford. That's why we're taking more steps to ensure major housing projects in our biggest region have the financial certainty they need to succeed."
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.
"Metro Vancouver is committed to supporting the delivery of more affordable and diverse housing options across the region," said Mike Hurley, chair, board of directors, Metro Vancouver. "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."
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% of development fees as long as four years or until occupancy, whichever comes first.
Anne McMullin, president and CEO, Urban Development Institute, said, "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."
The Province is doing its part to reduce barriers, support housing development and encourage developers to take advantage of these changes to help ensure the benefits are felt by future homeowners. These measures are part of B.C.'s work to help deliver more homes and address key infrastructure needs during uncertain financial times.
Duncan Wlodarczak, chief of staff, Onni Group, said, "This protection will help ensure our existing project pipeline can continue with less uncertainty. This means we can keep working to build more housing people need. Minister Kahlon and the Province have demonstrated an openness in these uncertain economic times to have productive conversations on steps they can take to provide relief to homebuilders. We look forward to making projects more viable, activate much needed economic activity, and deliver the necessary housing needed in the region."
Rick Ilich, CEO, Townline, said, "Bold moves like today's announcement bring cost clarity for every project that is in the queue for building permits. Minister Kahlon understands that the cost of delivery of new housing is a major obstacle in cities achieving mandated housing supply. For companies like Townline, this added certainty supports the viability of projects in our pipeline and helps protect thousands of jobs across the region. Coupled with deferring DCC and ACC payments, it delivers timely support for much-needed housing delivery."
"This extension of DCC protection to 24 months is a positive step for housing development in Metro Vancouver, improving our collective ability to move forward and support more housing and construction activity across the region. We look forward to continued collaboration with all levels of government to address broader housing challenges and deliver more homes for British Columbians, ", said Colin Bosa, CEO, Bosa Properties.
Quick Facts:
* An order-in-council will bring into force provisions of the Miscellaneous Statutes Amendment Act, 2025 (Bill 13), which received royal assent on May 29, 2025.
* Homebuilders who submitted an application before March 22, 2024, and were issued permits between March 23, 2025, and March 22, 2026, will benefit from having lower development cost charge rates than new projects.
* As part of the federal government's funding agreement toward the Iona Island Wastewater Treatment Plant project, the governments of Canada and British Columbia negotiated terms that better support communities throughout the province.
- This change applies only to Metro Vancouver Regional District, Greater Vancouver Water District, and Greater Vancouver Sewerage and Drainage District development cost charges bylaws currently in effect.
Picture Courtesy: THE CANADIAN PRESS/Darryl Dyck
