B.C. government expands relief from Metro Vancouver's development fee hikes | Daily Hive

B.C. government expands relief from Metro Vancouver Regional District's development fee hikes

Imagenet/Shutterstock

As a measure to provide real estate developers with some temporary financial relief amid the challenging current conditions to pursue any new building construction, especially housing projects, the Government of British Columbia has expanded regulatory changes that enable access to lower development cost charges (DCCs) rates imposed by Metro Vancouver Regional District.

Developers and builders who submitted an application before March 22, 2024, and were issued permits between March 23, 2025, and March 22, 2026, will see lower DCCs rates. This represents a 24-month reprieve from steep hikes to the DCC rates for in-stream projects, as opposed to the previous 12 months.

You might also like:

This change could result in up to tens of thousands of dollars in lower fees per residential unit, making a sizeable difference — potentially enough to nudge some currently stalled housing projects across the line into the realm of financial feasibility to proceed to the construction phase.

“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, B.C. Minister of Housing and Municipal Affairs, in a statement today.

“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 regional district had originally planned on increasing its DCCs to fund its growing capital costs, particularly relating to projects for new and improved sewage treatment plants.

In late 2024, the Government of Canada first indicated it would provide the regional district with $250 million toward covering the $750-million, first-phase cost of building the new Iona Wastewater Treatment Plant project near Vancouver International Airport. The full cost of the entire multi-phased project is estimated at $9.9 billion, including a multi-billion-dollar contingency fund.

Then, in March 2025, the federal government reaffirmed the funding commitment and noted that it comes with strings attached related to reducing new housing construction costs due to DCCs imposed by the regional district. In exchange for the funding commitment, the federal government reached an agreement with the provincial government to change the instalment payment timings of DCCs, extending DCCs protections for in-stream projects to lower project costs, and other relief measures for non-market housing.

The federal government and the regional district previously publicly butted heads over DCCs and the potential impact on new housing in Fall 2023.

“Metro Vancouver is committed to supporting the delivery of more affordable and diverse housing options across the region,” said Mike Hurley, chair of the board of directors for Metro Vancouver Regional District and the Mayor of Burnaby, in a statement today.

“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.”

Furthermore, the provincial government recently reduced the cost of new housing by allowing builders to delay paying 75 per cent of development fees to municipal governments across B.C., as long as up to four years or until occupancy — whichever comes first.

It also provided municipal governments with the ability to increase their borrowing capacity to fund capital projects, which also serves to reduce the need to use the timely payment of development fees for cash flow.

The latest move has been lauded by the industry and private sector developers such as Bosa Properties, Onni Group, and Townline.

“Extending the in-stream 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 of the Urban Development Institute.

Duncan Wlodarczak, the chief of staff for 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.”

You might also like: