B.C. announces changes to development upfront costs rules

The province says it’s making changes to help homebuilders get developments up and running more easily next year.

The B.C. government announced Wednesday it will create more flexible and extended payment timelines for homebuilders.

The changes reportedly focus mostly on development cost charges and amenity cost charges, which municipalities often charge developers to help build up the infrastructure around a new build.

Housing Minister Ravi Kahlon says homebuilders will now have four years — rather than two — to pay the charges.

Twenty-five per cent will be due at permit approval, and the remaining 75 per cent will be due at occupancy or within four years — whichever comes first.

Previously, ‘The Development Cost Charge and Amenity Cost Charge (Installments) Regulation’ required developers to pay one-third of the cost upon permit approval.

The province says that regulation hasn’t changed since 1984.

“This will improve the viability of housing projects as homebuilders can invest in new housing projects sooner. Lower carrying costs will also help unlock more housing developments that need additional capital,” said a ministry release.

Set to be effective on Jan. 1, 2026, the changes will apply to qualified developers in communities with a development cost charge, amenity cost charge, or school-site acquisition charge.

“It means housing will be built faster and cheaper in our communities,” Kahlon said. “And these kinds of solutions sound maybe not as grand, but they are significant in the sense that they will make the difference between projects happening and projects not happening.”

—With files from Chuck Chiang, The Canadian Press