As HAVAN and its members continue to provide feedback to 21 municipalities and the Metro Vancouver Regional District regarding developer fees and charges, HAVAN is in the process of submitting a letter to the Inspector of Municipalities concerning the payment schedule for Development Cost Charges (DCCs).
While it is clear that reducing DCC payments would be a more effective solution to the housing crisis, in the letter to the Inspector, HAVAN is focusing on the need for consistency in the payment schedules across the region—especially during a time when the industry needs certainty.
Under the current framework, the Local Government Act, Section 933(5) states that DCCs are payable either at the time of subdivision approval or upon the issuance of a building permit. Section 933(6) allows payments to be made in installments—typically two or three equal installments within two years of the initial approval. We are aware that local governments are exploring alternative payment schemes. These discussions are based on several potential options, including:
• 1/3 – 1/3 – 1/3 installments based on the timeline of buildout: The first payment is made at subdivision or building permit approval, the second at the midpoint of construction, and the final payment upon project completion.
• 1/3 – 1/3 – 1/3 installments based on construction phasing: The first payment occurs at subdivision or building permit approval, the second when construction reaches ground level, and the final payment when construction reaches above-ground level.
• Complete payment of DCCs at the time of occupancy approval.
It is encouraging to see municipalities, such as Coquitlam and Richmond, considering adjustments to their DCC payment schedules as a way to alleviate the burden of upfront payments on the industry. However, a collaborative discussion with stakeholders, including HAVAN and its members, is necessary to ensure a more favorable and consistent solution is implemented across the region.
As the Inspector of Municipalities is responsible for overseeing local government financial matters and approving certain local government decisions to ensure compliance with provincial legislation, it is logical that they examine the proposed or alternative DCC payment approaches and closely monitor any changes to avoid negatively impacting the financial viability of development projects.
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.
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