Development Cost Charges (DCCs) and What’s Changing in 2026
If you’re a homebuyer, developer, or someone interested in real estate in B.C., you may have heard of Development Cost Charges (DCCs). These fees play a big role in funding the infrastructure that makes new communities livable, and upcoming changes will make them more flexible for developers—possibly helping bring new homes, including presale opportunities, to market faster.
What Are Development Cost Charges?
Development Cost Charges are fees levied by municipalities and regional districts on new development projects. The money collected goes directly toward infrastructure needed to support growth, including:
- Water and sewer systems
- Drainage
- Roads and transportation
- Parks and recreational facilities
- Solid waste and recycling
- Fire protection and police facilities
Essentially, DCCs ensure that as a community grows, it has the infrastructure to support that growth.
How DCCs Are Calculated
Each type of infrastructure has its own DCC, calculated by dividing the estimated infrastructure costs required for new development by the number of new units expected to benefit. Different rates may apply depending on the type of development—residential, commercial, industrial, or institutional.
DCCs are typically collected at either:
- Subdivision approval, or
- Issuance of a building permit
The collected funds are held in separate reserve funds for each infrastructure category and must be used exclusively for the capital costs identified in the DCC bylaw.
Exemptions, Reductions, and Interest
Certain developments are exempt from DCCs by law, including some religious institutions and specific residential projects. Local governments may also waive or reduce fees for:
- Not-for-profit rental housing
- Supportive living housing
- For-profit affordable rental housing
If a municipality needs to borrow money for a DCC-funded project, the interest cost may sometimes be included in the charges.
Annual Transparency
Local governments are required to prepare an annual DCC report detailing:
- Total charges collected
- Reserve fund balances
- Expenditures and any waived or reduced charges
These reports must be publicly available by June 30 each year.
Upcoming Changes to DCCs (Effective January 1, 2026)
The Province of B.C. is introducing new rules to support housing development and reduce upfront costs for homebuilders:
- Extended Payment Timelines
- Developers will now have four years, instead of two, to pay DCCs.
- Payment can be split: 25% at permit approval, with the remaining 75% at occupancy or within four years.
- On-Demand Surety Bonds
- Homebuilders can now use on-demand surety bonds provincewide instead of relying solely on bank letters of credit.
- These bonds free up a developer’s access to credit and allow projects to move faster from start to finish.
- Currently, this option is available in select municipalities like Vancouver, Burnaby, Surrey, and Mission.
- Supporting Housing Affordability
- These changes aim to reduce carrying costs for developers, making it easier to start projects sooner and increase the supply of homes.
Ravi Kahlon, Minister of Housing and Municipal Affairs, explains:
These improvements are a collaborative effort between the Province, local governments, and the homebuilding industry, reflecting a commitment to building more affordable homes in communities people love.
Key Takeaways
- DCCs fund essential infrastructure for new developments.
- Charges vary by type of infrastructure and type of development.
- Reserve funds ensure collected fees are spent appropriately.
- Changes coming in 2026 will make payments more flexible and streamline financial tools for developers.
- The goal is faster construction, more housing options, and a stronger, well-serviced community.
For homebuyers, understanding DCCs can help explain why new developments—and even presale condos or townhomes—may be priced the way they are, since these charges are built into overall project costs. For developers, the upcoming changes offer new flexibility and financial tools to make building new housing easier.
As for how these changes will play out in North Vancouver and West Vancouver—both communities balancing growth pressures and livability—the long-term impact on planning, infrastructure investment, and future presale projects will remain to be seen.