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Development Cost Charge Revisions

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

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​​Overview

Metro Vancouver collects regional 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 these services to our growing region.

Metro Vancouver recently revised DCCs for regional water and liquid waste infrastructure, and introduced a DCC for regional parkland acquisition.​

The proposed rate changes, which include the application of interest costs for liquid waste and water only, ​are intended to be phased in over a multi-year period to arrive at a one-per-cent assist factor. The assist factor is the portion of growth projects funded by non-growth-related sources, such as sewage levies and water sales. The increases are intended to occur on January 1 each year.​

Background

In early 2022, Metro Vancouver’s Board Chair formed a Financial Plan Task Force to review the five-year financial plan and find ways to reduce potential costs to residents over the next four years. Through the process, Metro Vancouver reviewed programs and projects, and assessed risks to adjusting projects currently identified in the five-year plan. Recognizing that a significant portion of Metro Vancouver’s capital plan involves constructing larger or new infrastructure to accommodate new buildings and growth in the region, the Metro Vancouver Board endorsed moving to a DCC one-per-cent assist factor. This move embraces the principle of 'growth-pays-for-growth'.​

Water DCC proposed rate changes

Water DCCs were first implemented by Metro Vancouver in April 2023. Previously, the water DCC funded 50 per cent of the cost for any new infrastructure to address population growth, with the rest paid for primarily by the general public though water sales. Beginning January 1, 2025, new rates will pay substantially all growth infrastructure costs and be phased in over a three-year period.

Liquid waste DCC proposed rate changes by sewerage area

Liquid waste DCCs have been in place since 1997 and previously funded all but 17.5% per cent of the cost for any new infrastructure needed to address population growth, with the rest paid for by the general public through the liquid waste levy. Beginning January 1, 2025, new rates will pay substantially all growth infrastructure costs and be phased in over a three-year period.​

New parkland acquisition DCC​​

The regional parkland acquisition DCC will fund the acquisition of land to become regional parks, which will help ensure that the growing region can remain livable for the next generation. Growing the regional parks system supports human health and well-being, as well as biodiversity. ​



 

 

DCC rates beginning January 1, 2025DCC rates beginning January 1, 2025<div class="ExternalClass680F43C750E94B5B9007888CA7CF2289"><h3>Water DCC</h3><div class="uk-overflow-auto"><table class="uk-table uk-table-small uk-table-divider mv-border-cyan mv-table-heading-cyan mv-table-border"><thead><tr><th align="center">​​Assist Factor</th><th align="center">​Existing 50%</th><th align="center">45%<br>Jan 1, 2025</th><th align="center">​15%<br>Jan 1, 2026</th><th align="center">1%<br>Jan 1, 2027</th></tr></thead><tbody><tr><td>Residential Lot Development Unit </td><td>​​​$6,692</td><td>$10,952</td><td>$16,926</td><td>$19,714</td></tr><tr><td>Townhouse Dwelling Unit </td><td>$5,696</td><td>$9,839</td><td>$15,206</td><td>$17,710</td></tr><tr><td>Apartment Dwelling Unit </td><td>$4,261​​​</td><td>$6,791</td><td>$10,495</td><td>$12,223</td></tr><tr><td>Non-Residential (per square foot) </td><td>$3.39</td><td>$5.30</td><td>$8.19</td><td>$9.54​<br></td></tr></tbody></table>​​ </div><h3>Liquid Waste DCC</h3><div class="uk-overflow-auto"><table class="uk-table uk-table-small uk-table-divider mv-border-cyan mv-table-heading-cyan mv-table-border"><thead><tr><th>​Assist Factor</th><th align="center">​Existing 17.5%</th><th align="center">16%<br>Jan 1, 2025</th><th align="center">​10%<br>Jan 1, 2026</th><th align="center">1%<br>Jan 1, 2027</th></tr></thead><tbody><tr><td> <strong>VSA</strong></td></tr><tr><td>Residential Lot Development Unit</td><td> $3,335</td><td> $10,498</td><td> $11,290</td><td> $12,476</td></tr><tr><td>​​​Townhouse Dwelling Unit</td><td> $2,983</td><td> $9,593</td><td> $10,316</td><td> $11,400</td></tr><tr><td>Apartment Dwelling Unit</td><td> $1,988</td><td> $6,298</td><td> $6,772</td><td> $7,484</td></tr><tr><td>Non-Residential (per square foot)</td><td> $1.63</td><td> $5.30</td><td> $5.70</td><td> $6.30</td></tr><tr><td> <strong>NSSA</strong></td></tr><tr><td>Residential Lot Development Unit​​​</td><td>$3,300</td><td>$9,760</td><td>$10,478</td><td>$11,557</td></tr><tr><td>Townhouse Dwelling Unit</td><td>​​​$2,786</td><td>$8,996</td><td>$9,658</td><td>$10,652</td></tr><tr><td>Apartment Dwelling Unit</td><td>​​$2,030</td><td>$6,005</td><td>$6,448</td><td>$7,111</td></tr><tr><td>Non-Residential (per square foot)</td><td>$1.67</td><td>$5.00</td><td>$5.37</td><td>$5.92​​​</td></tr><tr><td> <strong>LISA</strong></td></tr><tr><td>Residential Lot Development Unit</td><td>​​​$3,313</td><td>$5,683</td><td>$6,152</td><td>$6,855</td></tr><tr><td>Townhouse Dwelling Unit</td><td>​​​$2,756</td><td>$4,927</td><td>$5,333</td><td>$5,943</td></tr><tr><td>​Apartment Dwelling Unit</td><td>​​​$2,042</td><td>$3,516</td><td>$3,806</td><td>$4,241 </td></tr><tr><td>Non-Residential (per square foot)</td><td>$1.54</td><td>$2.55</td><td>$2.76</td><td>$3.08​​​</td></tr><tr><td> <strong>FSA</strong></td></tr><tr><td>Residential Lot Development Unit</td><td>$6,254</td><td>$11,443</td><td>$12,311</td><td>$13,613</td></tr><tr><td>Townhouse Dwelling Unit</td><td>$5,390</td><td>$10,015</td><td>$10,775</td><td>$11,914</td></tr><tr><td>Apartment Dwelling Unit</td><td>​​​$4,269</td><td>$7,302</td><td>$7,855</td><td>$8,686</td></tr><tr><td>Non-Residential (per square foot)</td><td>$3.30</td><td>$5.41</td><td>$5.82</td><td>$6.43</td></tr></tbody></table>​​ </div><h3>Parkland Acquisition DCC​<br></h3><div class="uk-overflow-auto"><table class="uk-table uk-table-small uk-table-divider mv-border-cyan mv-table-heading-cyan mv-table-border"><thead><tr><th>​Assist Factor</th><th>​Existing</th><th align="center">75%<br>Jan 1, 2025</th><th align="center">​50%<br>Jan 1, 2026</th><th align="center">1%<br>Jan 1, 2027</th></tr></thead><tbody><tr><td>Residential Lot Development Unit</td><td>-</td><td>$491</td><td>$981</td><td>$1,943​​​</td></tr><tr><td>Townhouse Dwelling Unit</td><td>-</td><td>$442</td><td>$884</td><td>$1,751</td></tr><tr><td>Apartment Dwelling Unit</td><td>​​​-</td><td>$303</td><td>$606</td><td>$1,199</td></tr><tr><td>Non-Residential (per square foot)</td><td>​​​-</td><td>$0.24</td><td>$0.48</td><td>$0.94</td></tr></tbody></table>​​ </div><h3>TOTAL REGIONAL DCC</h3><div class="uk-overflow-auto"><table class="uk-table uk-table-small uk-table-divider mv-border-cyan mv-table-heading-cyan mv-table-border"><thead><tr><th>TOTAL REGIONAL DCC​<br> ​<br></th><th align="center">​Existing​<br> ​​<br></th><th align="center">Step 1​<br> ​​<br></th><th align="center">Step 2​<br>​ </th><th align="center">Step 3<br>1%</th></tr></thead><tbody><tr><td> <strong>VSA</strong></td></tr><tr><td>Residential Lot Development Unit</td><td>$10,027</td><td>$21,941</td><td>$29,196</td><td>$34,133​​​</td></tr><tr><td>Townhouse Dwelling Unit</td><td>$8,679</td><td>$19,874</td><td>$26,406</td><td>$30,861​​​</td></tr><tr><td>Apartment Dwelling Unit</td><td>​​​$6,249</td><td>$13,392</td><td>$17,873</td><td>$20,906</td></tr><tr><td>Non-Residential (per square foot)</td><td>​​​$5.02</td><td>$10.84</td><td>$14.37</td><td>$16.78</td></tr><tr><td> <strong>NSSA</strong></td></tr><tr><td>Residential Lot Development Unit</td><td>​​​ $9,992</td><td>$21,203</td><td>$28,385</td><td>$33,214</td></tr><tr><td>Townhouse Dwelling Unit</td><td> $8,482</td><td>$19,277</td><td>$25,748</td><td>$30,113​​​</td></tr><tr><td>Apartment Dwelling Unit</td><td>​​​ $6,291</td><td>$13,099</td><td>$17,548</td><td>$20,533</td></tr><tr><td>Non-Residential (per square foot)</td><td>​​​ $5.06</td><td>$10.54</td><td>$14.04</td><td>$16.40</td></tr><tr><td> <strong>LISA</strong></td></tr><tr><td>Residential Lot Development Unit</td><td> $10,005</td><td>$17,126</td><td>$24,058</td><td>$28,512​​​</td></tr><tr><td>Townhouse Dwelling Unit</td><td> $8,452</td><td>$15,208</td><td>$21,423</td><td>$25,404​​​</td></tr><tr><td>Apartment Dwelling Unit</td><td> $6,303</td><td>$10,610</td><td>$14,906</td><td>$17,663​​​</td></tr><tr><td>Non-Residential (per square foot)</td><td>​​​ $4.93</td><td>$8.09</td><td>$11.43</td><td>$13.56</td></tr><tr><td> <strong>FSA</strong></td></tr><tr><td>Residential Lot Development Unit</td><td>​​​ $12,946</td><td>$22,886</td><td>$30,218</td><td>$35,270</td></tr><tr><td>Townhouse Dwelling Unit</td><td>​​​ $11,086</td><td>$20,296</td><td>$26,865</td><td>$31,375</td></tr><tr><td>Apartment Dwelling Unit</td><td>​​​ $8,530</td><td>$14,396</td><td>$18,956</td><td>$22,108</td></tr><tr><td>Non-Residential (per square foot)</td><td>​​​ $6.69</td><td>$10.95</td><td>$14.49</td><td>​$16.91</td></tr></tbody></table>​​​ </div></div>
EngagementEngagement<div class="ExternalClassF36EBA6A28F04D3EAEA6B55BA89A0C81"><p>Metro Vancouver is committed to engaging with individuals and organizations that may be affected by or have an interest in DCC revisions.​​</p><ul class="fa-ul"><li> <span class="fa-li"> <i class="fa-light fa-link"></i></span> ​<a href="/about-us/community-engagement">Learn more about our commitment to engagement</a></li></ul><p>Engagement on the proposed DCC updates were held in September and October 2023. During that time, two public webinars were held, and the public was invited to provide comments by email to the team.</p><p>View the materials from the public engagement period:</p><ul class="fa-ul"><li>​<span class="fa-li"><i class="fa-light fa-link"></i></span>​<a href="https://vimeo.com/866567056" target="_blank">Metro Vancouver Development Cost Charges: Webinar Video of Presentation</a>, <span style="background-color:#f8f8f8;">September </span>2023​​<br></li><li> <span class="fa-li">​<i class="fa-light fa-file"></i></span> ​<a href="/services/liquid-waste/Documents/metro-vancouver-development-cost-charges-presentation.pdf" target="_blank">Metro Vancouver Development Cost Charges: Webinar Slide Deck of Presentation</a>, <span style="background-color:#f8f8f8;">September </span>​2023<br></li></ul>​ </div>​​<br>
Previous engagementPrevious engagement<div class="ExternalClass20696726FF6243E782E83FE8C7D50E5A"><p>In 2021, staff conducted engagement to revise the liquid waste infrastructure development cost charges. In 2022, staff conducted an initial phase of engagement specific to water infrastructure DCCs, which included information sharing, industry capacity analysis, and rate modelling, and resulted in a set of draft DCC rates for input from member jurisdictions, First Nations, interested and affected parties, and the public.</p><p>During engagement, Metro Vancouver heard support for the concept that growth should pay for growth. Industry and member jurisdictions expressed concern about the cumulative impact of rate increases, and in response staff commissioned an industry capacity analysis to assess the impact of the proposed DCC rates. Metro Vancouver also heard strong support for a waiver for non-profit rental housing, which was put into effect.</p><ul class="fa-ul"> <li>​ <span class="fa-li"> <i class="fa-light fa-file"></i></span> ​<a href="/boards/Water/WAT_2022-Oct-6_AGE.pdf#page=44" target="_blank">2022 Staff Report on Water DCC Review Process with Engagement Summary​</a><br></li></ul></div>
In-Stream applicationsIn-Stream applications<div class="ExternalClassD77D94FC445F4D8F9BA1732B18A84143"><p>New development cost charge bylaws are subject to “in-stream” provisions as determined by Section 568 of the Local Government Act.</p><div class="uk-background-muted uk-panel uk-padding-medium"><p> <strong>Local Government Act</strong>​ - Effect of bylaws adopted after application for rezoning, development permit or building permit submitted​</p><p>568(2) - Subject to subsection (3), a development cost charge bylaw that would otherwise be applicable to the construction, alteration or extension of a building or structure has no effect with respect to that construction, alteration or extension if </p><ul><li>The building permit authorizing that construction, alteration or extension is issued within 12 months after the date the bylaw is adopted, and</li><li>A precursor application to that building permit is in-stream on the date the bylaw is adopted.</li></ul>​​</div> <br> <p>It is the issuance of a building permit for construction, alteration or extension of a building or structure that is required to qualify for the in-stream protections.</p><p> <i class="fa fa-light fa-link" aria-hidden="true"></i> ​<a href="http://www.bclaws.ca/civix/document/id/lc/statreg/r15001_14#division_d0e45097" target="_blank">Learn more about Division 7 — Development Permits</a>​<br></p></div>
Project documents and resourcesProject documents and resources<div class="ExternalClassEC9F847072004E55AF2B16E159BD778F"><ul class="fa-ul"><li>​​ <span class="fa-li"> <i class="fa-light fa-file"></i></span> <a href="/boards/Finance/FIN_2023-Oct-12_AGE.pdf#page=122" target="_blank">Development Cost Charge Engagement Update and Proposed Rate Bylaws</a></li><li>​​ <span class="fa-li"> <i class="fa-light fa-file"></i></span> <a href="/boards/Finance/FIN_2023-Oct-12_PPT.pdf#page=20" target="_blank">Development Cost Charge Review Process and Rate Bylaw</a><br></li></ul><p>Financial Plan Task Force </p><ul><li>Report <ul class="fa-ul"><li>​​ <span class="fa-li"> <i class="fa-light fa-file"></i></span> <a href="/boards/FinancialPlanTaskForce/FPL_2023-Mar-22_AGE.pdf" target="_blank">Financial Plan Task Force Recommendations for the 2024-2028 Financial Plan (including recommendation on updating DCC rate assumptions)</a></li></ul></li></ul><ul><li>Presentation <ul class="fa-ul"><li>​​ <span class="fa-li"> <i class="fa-light fa-file"></i></span> <a href="/boards/FinancialPlanTaskForce/FPL_2023-Mar-22_OT.pdf" target="_blank">Proposed Approach to Household Impact Target Reductions</a><br></li></ul></li></ul></div>

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