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 as well as parkland acquisitions 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 three separate DCC charges, liquid waste, water, and parkland acquisition.
Funding water system expansion
Metro Vancouver updated the water Development Cost Charge rate effective January 1, 2025. Until recently, 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 rates are 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 and parkland acquisition bylaws, 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 January 1, 2025).
Assist Factor
| Jan 1, 2025
45% | Jan 1, 2026
15% | Jan 1, 2027
1% |
|---|
| Residential Lot Development Unit | $10,952 | $16,926 | $19,714 |
| Townhouse Dwelling Unit | $9,839 | $15,206 | $17,710 |
| Apartment Dwelling Unit | $6,791 | $10,495 | $12,223 |
| Non-Residential (per square foot) | $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 DCC rates include interest costs to finance the infrastructure projects.