Recently, several UDI members have submitted formal letters to the Metro Vancouver Regional District Board, calling for immediate action on the increases to the Metro Vancouver Development Cost Charges. The submissions highlight several key recommendations:

1. A two-year postponement of the DCC increase to support ongoing projects already grappling with viability challenges.
2. A revised implementation plan allowing DCC payments at project completion, rather than at the outset.
3. A comprehensive financial analysis to assess the full impact of the DCC increase on land values, project feasibility, and Community Amenity Contribution (CAC) funding, with a focus on establishing a fair cost-sharing balance between new developments and the existing tax base.
4. Meaningful industry engagement to ensure appropriate protection for projects from the Rezoning Application stage to completion, including a phased implementation period of 5-10 years.

The letters also emphasize the substantial impact of the fee increases on housing supply and affordability across Metro Vancouver. According to the analysis by Coriolis Consulting, the increases could reduce land values by 3.2% to 23.6%, while cutting development profit margins by 8% to 18%. These pressures have already contributed to a 20% decline in housing starts and a sharp reduction in pre-sales for multi-family projects in the first half of 2024.

The letter submitted can be read here.