Instead of writing to the big man in red, maybe it’s time we asked the Minister of Housing and Infrastructure for this year’s holiday wish list.
Development Cost Charges (DCCs) continue to be a major obstacle to housing delivery and affordability. Meanwhile, various levels of government are pointing fingers at each other over who is to blame. Municipalities argue that senior governments aren’t providing enough infrastructure funding or the right tools to collect necessary revenue. The provincial government insists municipalities need to do more to meet housing targets and increase supply. The federal government is offering the Housing Accelerator Fund and the Housing Infrastructure Fund as potential solutions to the funding crunch. A lot of talk but housing delivery is still stagnate.
Wesgroup, under their previously anonymous moniker “Homes Don’t Just Happen”, released a new video, “How Housing Delivery Stacks Up (and Why Restoring Affordability is No Simple Task)“, which illustrates the layers that make up home pricing, and how DCCs are one of the highest costs affecting housing affordability, even when you strip away land acquisition costs and business profit.
In a recent interview with RED FM Vancouver, I discussed DCCs’ impact on the region, referencing HAVAN’s October report Development Finance: New Legislation, New Charges, and the Cost of Delivery Crisis, which sheds light on the significant disparity in DCC rates across municipalities.
Is there hope? Can municipalities move past the blame game and work with industry to find real solutions to get shovels in the ground? The answer is yes, if they’re willing.
As noted in a previous Monday Morning Briefing, the City of Vaughan (Ontario) recently approved significant reductions in its development charge rates in an effort to encourage development and meet the growing demand for housing. Prior to these reductions, Vaughan had some of the highest DCC rates in the Greater Toronto Area. While it remains unclear whether this means the city will delay infrastructure projects or explore alternative funding sources, this is certainly a positive step.
At the December 2 Township of Langley Council meeting, a motion was introduced to reconsider the Township’s 2023 DCC Bylaw No. 5897 and 2024 DCC Amendment No. 6024, effectively resetting the clock on DCCs. While this motion doesn’t result in lower DCCs, it does provide industry with a bit of relief by extending the timeline for adoption. HAVAN has sent a letter of support to Council. In addition, there have been ongoing discussions about municipalities potentially adjusting the timing of DCC collections, a change that our Government Relations Committee has been advocating for. It’s crucial we continue to encourage these conversations.
Where can the province step in? I had the opportunity to speak with the Honourable Ravi Kahlon, Minister of Housing and Municipal Affairs, on HAVAN’s podcast Measure Twice, Cut Once to discuss the merging of the two ministries and his strategy for building more homes. The interview, recorded on November 28—just 10 days after Premier Eby’s cabinet announcement—will be released later this week.
Now holding both the ‘stick and the carrot’, the Minister talked about focusing on the implementation process of the housing bills his Ministry introduced in the previous term, and has already been speaking with municipalities. In responding to my question about municipal pushback and their argument that there are many factors that affect housing delivery that is outside their control (and in turn, they are unable to meet housing targets), the Minister replied, “but it’s not entirely correct to say that we have no influence on that. If a local community raises the DCCs by 150%, you’ve blocked that housing from being built.”
I encourage you to listen to the podcast episode (the link will be included in GRU this Saturday once it is released). We appreciate the Minister sitting down to talk with us so early into his new term, and having a candid conversation about where do we go from here. We look forward to having him back later in his term to get an update.
HAVAN continues to work with CHBA BC and CHBA to advocate for all levels of government to work together to address the challenges of the housing industry including zoning restrictions, density limits, and NIMBYism.
Looking to stay up-to-date on Metro Vancouver’s residential housing industry? Sign up for Wendy’s weekly Monday Morning Briefing and other HAVAN emails here.
QUICK BITES …
- Cracks showing in B.C.’s affordable housing plans (opinion article by Kerry Gold in The Globe and Mail )
- Want to Ease the Housing Crisis? Build High-Speed Rail (Maclean’s) Canada is the only G7 country without high-speed rail – Japan’s Shinkansen bullet train has been around since 1964. France’s double-deck TGV stretches over 2,800 kilometres and China’s Shanghai Maglev hits speeds of up to 460 kilometres per hour. Over the next few weeks, however, the federal government is set to announce detailed plans for a high-speed rail linking Toronto and Quebec City, covering over half of Canada’s population – but with the election looming, the high-speed rail’s fate could lie in the hands of a new government.
- Vancouver ‘on-track’ to meet 5-year housing goal after missing annual target, councillor says (video, CBC News)
- GREEN SHEETS ON THE GO! HAVAN member Green Sheet Construction Data tracks the Metro Vancouver construction market. Their online searchable database provides clients with a powerful tool to see past, current, and future construction projects across the Lower Mainland. Visit Green Sheet Hot Tips to view this month’s featured projects.
