November 5th, 2024

On October 30th, UDI submitted a letter to the Metro Vancouver Regional District Board of Directors, urging a delay in the implementation of the upcoming Development Cost Charge (DCC) increases due to ongoing viability challenges faced by many projects. 

Key recommendations include: 

• Delaying the implementation to allow time for further financial analyses in collaboration with the housing sector, assessing the impact of the increases on land value and development viability across various project types. 
• Collaborating with the building sector and the Provincial Government to significantly extend in-stream protections for ongoing projects and phase in the rate increases. 
• Working with the development sector and the Provincial Government to enable municipalities to defer DCC payments until the occupancy or sale of the units.  

Further details can be found in UDI’s full submission. 

March 26th, 2024

On March 22nd, 2024 Metro Vancouver’s Board of Directors approved the dramatic Development Cost Charge (DCC) increases that were initially proposed last fall.

The increases will add substantial costs to new projects and Metro Vancouver’s own report acknowledges that they will impact the cost and delivery of housing.

UDI and many of our members repeatedly expressed strong opposition to the changes, including through our most recent submission to the Board. However, Metro Vancouver’s Board proceeded to approve the changes despite the severe impacts on new construction.

In-stream protections consistent with Local Government Act Section 568 will be provided to projects that had already submitted a pre-cursor application by the date of adoption and receive a Building Permit within one year of the Bylaw adoption date. These protections will only apply to the initial DCC rate change and not subsequent changes outlined in the Bylaw as Step 2 or Step 3, which will be effective on January 1, 2026 and January 1, 2027 respectively.

The full list of rates is available on Metro Vancouver’s website.

On the same day, Metro Vancouver also released an updated cost estimate to deliver the North Shore Wastewater Treatment Plant, which saw program delivery balloon from $700 million to $3.86 billion.

In the context of the nearly three-fold increase in development charges to fund the upgrade and expansion of regional infrastructure and parks, we are concerned that other increases may be coming in the future, without significant changes to how these large capital projects are being delivered and funded.

October 31, 2023

On October 27, Metro Vancouver’s Board of Directors approved the proposed Development Cost Charge increases with the amendment that the Regional District conducts annual reviews of the DCC bylaws, including economic impact analysis and the DCC waiver program. Although there were amendments proposed that would have delayed the effective date of the DCC increases by an additional year, they were ultimately not approved.

UDI is very disappointed with the decision, which rejects the recommendations made by the development industry and the Federal Minister of Housing, Infrastructure, and Communities.

There had been strong opposition to the changes from the development industry, and UDI conveyed that sentiment through a letter that was shared with mayors and Councillors across the region, as well as Federal and Provincial Ministers.

Both letters were highlighted in articles written by Dan Fumano for the Vancouver Sun.

Metro Vancouver needs billions for infrastructure. Who should pay?

Canada's housing minister urges Metro Vancouver to think twice on development charges

After this approval by the Metro Vancouver Board of Directors, the proposed DCC bylaws will be sent to the provincial Inspector of Municipalities for review, before coming back to the Metro Vancouver Board of Directors for final adoption.

If you have any comments or questions about the proposed DCC increases or UDI’s advocacy on this issue, please contact the policy team at policy@udi.org

October 17, 2023

On October 12, Metro Vancouver’s Finance Committee voted to advance the proposed Development Cost Charges to Metro Vancouver’s Board of Directors for approval later this month. These changes will increase DCC rates by more than 250% by 2027 – on top of municipal increases occurring simultaneously across the region.

UDI has strongly opposed the increases due to the delays or deferrals of new development that will happen if these dramatically higher costs make projects unviable. UDI wrote to Metro Vancouver to express our concern with these proposals and recommend that the increases be paused until further economic analysis can be conducted on the impact to new development.

In-stream Protections:

Metro Vancouver has also confirmed that if approved, the in-stream protections for projects that have already submitted a precursor application (rezoning, development permit, or building permit) will begin from the date of bylaw adoption, not the effective date of January 1, 2025. Once in-stream projections begin, projects will need to receive their full building permit within 12 months to be grandfathered under the existing DCC rates.

For example, if the DCC bylaw received final adoption on February 1, 2024, projects with a precursor application submitted by that date will have until January 30, 2025 to receive their full building permit.

If you have any questions or would like to provide additional feedback to UDI, please email us at policy@udi.org.

October 4, 2023

On September 20 and September 22, Metro Vancouver held webinars to provide information to the building and development industry on the proposed DCC changes. Staff noted that they are looking to bring these changes to the Metro Vancouver Regional District (MVRD) Board in October for third reading, bylaw adoption in early 2024, with an effective date of January 1, 2025. The full webinar slide deck can be found here.

In addition to this, Coriolis presented a Comparison of Potential Financial Impact on New Development of Metro Vancouver’s Proposed DCC Rate Increases and Changes in Other Market Factors. The report found that the proposed increases will add to the cost of new construction and are similar to the impacts from the latest 12-month change in financing rates. UDI will continue to express our concerns with rising costs for builders and how the Metro Vancouver DCC increases are not a step in the right direction.

The Federal Minister of Housing is aware of the proposed increases and on September 26 delayed an announcement regarding Housing Accelerator Funding to two Metro Vancouver municipalities.

UDI does not support the proposed changes as they will impact the ability to deliver new housing in the region. We will be providing comments to the MVRD ahead of the October 27 Board meeting. Please send any comments you have to policy@udi.org by Friday, October 13. 


 

September 19, 2023

Metro Vancouver is undertaking revisions to the development cost charge (DCC) rates for liquid waste, and water as well as proposing the introduction of a new DCC to help grow the regional parks system. The proposal is to change the assist factor to one percent and phase it in over a number of years beginning in 2025.

The first round of changes proposed for January 1, 2025 will represent the largest increase in DCC rates to account for additions to Metro Vancouver’s capital plan. More details will be available at the engagement sessions held later this week.

UDI has previously raised concerns regarding significant increases in Regional DCCs and continues to urge all levels of government to take into account that builders and developers are facing numerous market and regulatory challenges. Adding new fees and significantly increasing existing fees creates an added burden on the delivery of new homes.

The proposals include:

• A phased reduction of the assist factor of the Water DCC from 50% to 1% by January 1st, 2027;
• A phased reduction of the assist factor of the Liquid Waste DCC from 17.5% to 1% by January 1st, 2027; and
• The introduction of the Park DCC, starting at a 75% assist factor on January 1st, 2025, and a phased reduction to 1% by January 1st, 2027.

The total rate changes for all categories can be found on Metro Vancouver’s website.

As part of the DCC revision process, Metro Vancouver is analyzing the impact of DCC rate increases on the market and on housing affordability, and will be engaging with member jurisdictions, First Nations, industry, and the public.

How to learn more and engage with Metro Vancouver:

• Read more about the revisions
• Attend a webinar [register online]:
• Wednesday, September 20, 11:00 am – noon
• Friday, September 22, 11:00 am – noon

UDI will be engaging with Metro Vancouver regarding these changes. Please send any feedback you have to policy@udi.org. If you have specific questions about the DCC changes, please contact Metro Vancouver at dccs@metrovancouver.org