Tomorrow, Tuesday, July 14, the City of Vancouver’s 2026 Financing Growth Update is scheduled to be reviewed by Council, which includes some significant updates to the City’s development financing framework. The City issued notification of the report on Friday, and was flagged in HAVAN’s Government Relations Update this past Saturday.
The proposal introduces a new city-wide Amenity Cost Charge (ACC) program, which is the standardized tool the Province created through Bill 46 to replace negotiated Community Amenity Contributions and density bonusing, alongside an updated Development Cost Levy (DCL) framework, expanded exemptions, the removal of project-specific Public Art Contributions, and continuation of the 20% DCL reduction first approved in December 2025.
As ACCs adoption by municipalities is voluntary, it has been inconsistent across the region. Burnaby adopted ACCs in 2024, Coquitlam in 2025, Surrey this past June, and if approved, Vancouver’s ACC and DCL bylaws will come into effect on September 30, 2026.
On Friday, Howard Chai of The Realist released an informative summary of the 212-page report, which included: residential ACC rates would be tiered by density, from $2.32 per sq. ft. below 1.2 FSR up to $10.00 per sq. ft. above 1.5 FSR, with the top rate phased in at 50% for the first year. Rental waivers would extend to the ACC, in-stream applications would receive up to five years of rate protection. The City also proposes pre-set 3% annual increases to development charges through 2029.
Overall, HAVAN supports the need to move from closed-door, site-by-site negotiations (and in the specific case of Lorval Developments Ltd v Langley Township ruled illegal ) to standardized, transparent charges gives builders the certainty they need to evaluate projects and make investment decisions.
In our letter, we recommended to Council:
- Approve the continuation of the 20% DCL reduction, the transition to a standardized ACC framework, the phased implementation of new ACC rates, expanded housing exemptions, and the elimination of project-specific Public Art Contributions.
- Defer the proposed automatic annual increases to development charges until the federal and provincial Build Communities Strong Fund is fully outlined and implemented. Senior governments have committed billions toward reducing growth-related infrastructure costs; municipalities need clarity on how those investments will land before locking in new automatic increases that risk offsetting the intended benefits.
- Commit to reviewing the framework within two years, measuring success through housing starts, project viability, approvals, and completed homes — not solely through revenue collected.
Although the report acknowledges that development economics require predictable financing tools to support investment, we know that municipal fees are only one part of the equation, as development permit timelines, servicing requirements, engineering reviews, financing conditions, and overall regulatory complexity also impact whether projects move forward.
The real test will be whether this framework supports the delivery of more homes, or simply shifts costs under a new name.
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HAVAN continues to work with CHBA BC and CHBA to advocate for all levels of government to work together tress the challenges of the housing industry including zoning restrictions, density limits, and NIMBYism.
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QUICK BITES …
- Surrey real estate prices plumet, but where are the buyers? | BIV
- The Province announced $9 million in funding for 56 municipalities to fast-track development approvals in the third intake of the Local Government Development Approvals Program.
- Canada’s unemployment rate edged lower in June | RBC
- Vancouver condo market not expected to see recovery until mid-2027 | Calgary Herald
- Newcomers to Canada could feed a future market upswing, Statistics Canada data suggest | The Globe and Mail (subscribers access)
