Overview
Metro Vancouver collects development cost charges (DCCs) for new residential and non-residential developments in the region to pay for new liquid waste and water infrastructure needed to provide services to the future occupants of these buildings. These charges are defined in the bylaws of the legal entity responsible. There are currently two separate DCC charges, liquid waste and water, with a new parkland acquisition DCC to be introduced in January 2025.
Funding water system expansion
Metro Vancouver established a new water Development Cost Charge effective April 28, 2023. Until now the larger regional water infrastructure — water treatment facilities, reservoirs, water mains and pump stations that deliver the water to the municipalities — have primarily been paid for through user fees. The DCC fees are defined in the Development Cost Charge Bylaw below. The water DCC will have new rates phased in over three years beginning January 1, 2025.
Calculating the development cost charges
DCCs are calculated based on the type of development. One significant point of departure between the water DCC bylaw and the sewer DCC bylaw is that the water DCC has only one fee structure for the one regional water system, while sewer DCC has four different fee structures aligning with the four sewerage areas in the region.
Similar to the sewer bylaw, DCCs are based on four separate land use categories: residential lot development unit (detached single-family, duplex and triplex), townhouse, apartment, and non-residential. Residential, townhouse, and apartment are charged per unit/dwelling, while non-residential developments are charged per square foot.
Collecting the DCC
Local municipalities are responsible for collecting the charge. This is usually done at the subdivision approval stage for single-family residential developments and the building permit stage for other types of development.
Water DCC rates by land use category (effective April 28, 2023 to December 31, 2024):
| Residential | Townhouse | Apartment | Non-Residential
|
|---|
| $6,692 / unit | $5,696 / unit | $4,261 / unit | $3.39 / ft2 of floor area |
A list of DCC water capital growth projects can be found in the DCC Capital Growth Program 2021 Budget. The DCC rates include interest costs to finance the infrastructure projects.
Future DCC Rates
Revised DCC rates effective January 1, 2025 to January 1, 2027
Water DCC
Assist Factor
| Existing 50%
| 45%
Jan 1, 2025 | 15%
Jan 1, 2026 | 1%
Jan 1, 2027 |
|---|
| Residential Lot Development Unit | $6,692 | $10,952 | $16,926 | $19,714 |
| Townhouse Dwelling Unit | $5,696 | $9,839 | $15,206 | $17,710 |
| Apartment Dwelling Unit | $4,261 | $6,791 | $10,495 | $12,223 |
| Non-Residential (per square foot) | $3.39 | $5.30 | $8.19 | $9.54
|
A list of DCC water capital growth projects can be found in the DCC Capital Growth Program 2023 Budget. The above effective January 1, 2025 DCC rates include interest costs to finance the infrastructure projects.