Government has made 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. This will help to ensure that homebuilders, future homebuyers, renters and tradespeople in Metro Vancouver will have more certainty that housing projects, which are planned or under construction, will continue to be built.
“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, Minister of Housing and Municipal Affairs. “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 change supports the Metro Vancouver Regional District’s eligibility for $250 million in federal infrastructure funding, while granting eligible homebuilders an extra year to access the lower development cost charge rates. Using federal funding in this way ensures that Metro Vancouver can continue to upgrade critical infrastructure without increasing costs for residents or future homebuyers.
“Metro Vancouver is committed to supporting the delivery of more affordable and diverse housing options across the region,” said Mike Hurley, chair, board of directors, Metro Vancouver. “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.”
This builds on recent changes to another provincial regulation to further reduce the cost of delivering new homes for people by allowing B.C. homebuilders to delay paying 75% of development fees as long as four years or until occupancy, whichever comes first.
The Province is doing its part to reduce barriers, support housing development and encourage developers to take advantage of these changes to help ensure the benefits are felt by future homeowners. These measures are part of B.C.’s work to help deliver more homes and address key infrastructure needs during uncertain financial times.