With increased media attention, industry backlash, and public scrutiny over its well-documented infrastructure project cost overruns, out-of-touch DCC hikes and lucrative paydays, Metro Vancouver will be asking the Province to participate in a joint governance review.
Following the Board’s approval to approach the Province on a joint review, a notice of motion was brought forward by Port Coquitlam Mayor Brad West, who sits on the Board and is the chair of TransLink’s Mayor’s Council, which is poised to bring major – and well overdue – changes to governance and costs of the Metro Vancouver Regional District at their February 28 meeting. In addition to slashing meeting stipends by 50 per cent, reducing Metro Vancouver committees by a minimum of 50 percent, and cutting the number of meetings for which a stipend is paid by at least half as well, the most impactful inclusion is calling for a full-scale external core service review of Metro Vancouver Regional District, Greater Vancouver Sewerage and Drainage District, Greater Vancouver Water District and Metro Vancouver Housing Corporation.
West notes that the purpose of the motion is to identify “savings, efficiencies and reductions by examining all departments and service areas, staffing levels, use of contracted services and consultants and other areas as identified by the Board, as well as reviewing Metro Vancouver’s role as a regulator, identifying areas of duplicatory or overlapping municipal, regional, provincial, and federal regulation, and delegated authorities from the provincial and federal governments which maybe uploaded back.”
Understanding Metro Vancouver’s Current Governance System
Metro Vancouver’s governance model was designed to balance the interests of 21 municipalities, Electoral Area A (mainly composed of UBC/UEL), and the Tsawwassen First Nation. The regional board, made up of elected officials from these municipalities, is responsible for overseeing key services, including the regional water supply, sewage treatment, solid waste management, regional planning and affordable housing.
For 2025, the Regional District has a budget of $3.2 billion, including $1.464 billion for operating costs and $1.768 billion for capital project costs. The 2025 operating budget is more than double the 2015 operating budget of $657 million. In 2020, the operating budget was $1.02 billion.
Regional Development Cost Charges (DCCs) have been set to increase two-fold and even more in some cases over the next three years. With Metro Vancouver recently confirming they will be receiving funding from the Canada Housing Infrastructure Fund (CHIF), there was question surrounding one of the two conditions that were part of the CHIF requirements, “implement a three-year freeze on increasing development charges above the rates as of April 2, 2024.”
Rising Concerns: DCCs, Infrastructure Costs, and Directors’ Salaries
HAVAN, UDI, ICBA and a collective of high-profile developers have been vocal about the growing financial pressures caused by escalating DCCs and rising infrastructure costs. Metro Vancouver’s DCCs have risen exorbitantly in recent years, adding substantial costs to the price of new housing, impacting affordability and stalling housing delivery.
The mismanagement of major infrastructure projects like the North Shore Wastewater Treatment Plant have also called into question, the regional body’s ability to effectively manage significant capital projects. The ballooned project costs and delayed timeline will impact homeowners across the region for decades, especially those on the North Shore.
And, at a time when rising costs are top-of-mind for everyone, there has been increasing public scrutiny regarding Directors’ salaries within Metro Vancouver’s governing body – paid by taxpayers – with some Board members, including Mayor Brad West himself, receiving compensation well over $300,000, as a combination of their mayoral salaries, Board and multi-committee compensation, and other related charge backs.
And yet, Metro Vancouver has been aiming the finger-pointing at senior levels of government as the cause for blame for Metro’s inability to reduce DCCs, and its preference not to add the burden of the cost increases on current homeowners. Although Metro Vancouver is currently reviewing a proposal to waive regional DCCs for inclusionary housing, which is positive, the year-on-year increases for market housing into 2027 remain, which will have a significant impact on new-home buyers, include first-time homebuyers who are most at risk of decreased buying power and affordability challenges, as the cost of housing rises.
The Path Forward
Although Metro Vancouver looks to be headed in the right direction in seeking a complete governance review, HAVAN agrees with New Westminster City Councillor Daniel Fontaine’s comments that the governance review should be conducted independent of Metro Vancouver to ensure a fully transparent and non-biased process.
But, with the wheels poised to move forward as is, HAVAN will remain engaged with members and the Minister, to provide insights on the impact of rising DCCs and advocate for meaningful changes at the regional level. We want to see greater engagement with industry and action that supports housing in this region — a fairer approach to the DCC assist factor, better protection for in-stream projects, considerations for market housing to also see reduced DCCs, deferral of DCC payments, transparency for major capital infrastructure projects, and more consultation and feedback with stakeholders when newly implemented policy has negative effects.
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 …
- WORKING TOGETHER TO FIND SOLUTIONS TO PENDING TARIFFS
Your Supplier Council along with the Designers Council, and the Custom Homebuilders and Renovators Council are looking to collect information about our industry’s exposure to the potential US tariffs along with any planned minimization strategies in the works. If you have knowledge on the potential impact of tariffs on your vertical within the housing industry, please take a moment to add information to this collective document located on Google Docs. HAVAN will share collective information in the upcoming MMBs and Member Connection Emails. - Canada waits to see if Trump will follow through on steel and aluminum tariff threat (CBC)
- Storeys Op-Ed: CoV Seeks To Generate Profits From A Market It Is Actively Obstructing
