August 12, 2025

As mentioned in previous newsletters, the Ministry of Housing and Municipal Affairs has responded to industry questions regarding recent amendments to the Development Cost Charge and Amenity Cost Charge Instalments Regulation by issuing a Frequently Asked Questions (FAQ) document. 

UDI, along with the Canadian Home Builders’ Association of BC (CHBA BC) and the Homebuilders Association Vancouver (HAVAN), submitted a joint letter to the Ministry seeking clarification on the changes. 

To view the FAQs, please click here. 

July 15, 2025

On July 2nd, the Province announced a meaningful step toward reducing the cost of delivering new homes in British Columbia. While this is just one of many actions needed to address the rising cost of building, it is a practical move that reflects what the industry has been calling for. 

Under the new framework: 

• 25% of development fees due at building permit;
• 75% deferred until occupancy or 4 years (whichever comes first); and
• Surety bonds now accepted as security. 

UDI has worked closely with the Province to advance this policy change, bringing forward member concerns and pushing for practical solutions to support housing delivery. 

Additional detail has since been provided on the announcement, including: 

• The Development Charges (Instalments) Regulation will apply to all municipalities and Regional Districts in British Columbia, with one exception being the City of Vancouver. The City of Vancouver operates under the Vancouver Charter and has separate regulations that are similar;
• The DCC charge is determined at permit approval. The regulation provides payment of that set DCC charge over four years, or occupancy permit approval (whichever occurs first); and
• If the DCC charge rate changes while a completed application is submitted, but prior to permit approval, there is a one-year instream protection period (for MO note Metro difference) that holds the rate. For an application to receive the rate that was in effect at the time the application was submitted it must receive permit (approval) within one year of the bylaw adoption that changes the DCC rate. 

More information can be found in the full government news release and the Ministerial Order. 

Related to DCCs, on July 15 the Province also announced 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. 

In a July 15 news release, UDI’s President & CEO, Anne McMullin commented that: 

"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.” 

UDI's Board Chair, Rick Ilich, also noted the following: 

"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." 

More information can be found in the full July 15 news release linked above or the article published by the Vancouver Sun.