Last month, the Province announced changes to allow more flexibility for municipalities, Metro Vancouver and TransLink to waive or reduce DCCs (and Development Cost Levies in the City of Vancouver) through Bill 16, the Miscellaneous Statutes Amendment Act, 2026.  

Beyond a few exemptions, currently there are a limited number of reasons, local governments can reduce or waive DCCs. They include: 

• “Not-for-profit rental housing; 
• Supportive living housing; 
• For-profit affordable rental housing; 
• A subdivision of small lots designed to result in low green house gas emissions; and 
• A development designed to result in low environmental impact.” 

The Province is proposing to add flexibility to the categories in two ways. First, they are allowing amendments to the list of “… eligible project categories that local governments … could choose to apply to reduce development cost charges …,” to be done through regulation – instead of the current approach that requires legislative changes.  

Second, they will likely be adding to the list of reasons for waivers/reductions that municipalities can utilize to help unlock “… federal funding for community infrastructure …”. The $17.2 billion (over ten years) Federal “… Build Communities Strong fund requires provinces to reduce development charges on multi‑unit housing, among other conditions, to access federal infrastructure dollars.” 

Michael Drummond, UDI’s CEO, stated in the Ministry’s press release that “UDI welcomes the Province's proposed amendments giving local governments more flexibility to reduce or even waive development cost charges/levies. Lowering upfront costs is one of the most direct ways to help get more housing built.”