Member Bulletin: BC Government Announces Changes to Development Charges Installments

CHBA BC is pleased to share that the Government of British Columbia has announced proposed amendments to the Development Cost Charge and Amenity Cost Charge (Installments) Regulation that will help unlock capital, ease upfront cost pressures, and support the delivery of more homes.

These changes follow extensive engagement with CHBA BC and industry partners, reflecting key recommendations to allow development charge payments to be deferred to occupancy and provide more flexibility in how deferred payments are secured.

CHBA BC CEO Neil Moody joined Minister of Housing Ravi Kahlon, Surrey Mayor Brenda Locke, and Delta Mayor George Harvie at this morning’s announcement in Delta and offered the following remarks, “Our association has long advocated for flexibility in managing upfront development costs, which present significant financial barriers to homebuilders. The ability to defer a portion of development charges and use on-demand surety bonds is a practical measure to address the current economic realities of building housing across British Columbia.”

Proposed Amendments:

• Extended Payment Timeline: The instalment period has been extended from 2 years to 4 years or until occupancy permit is granted, whichever comes first.
• Payment Structure:
  o    25% due at subdivision approval or building permit issuance;
  o    75% due at occupancy permit or after 4 years.
• Surety Bond Option: Developers may opt to provide an on-demand surety bond as an alternative to an irrevocable letter of credit to secure deferred payments.
• Eligible Charges: In addition to development cost charges (DCCs) and amenity cost charges (ACCs), school site acquisition charges will now also be eligible to be paid in instalments.
• Effective Date: January 1, 2026

These changes are a critical step toward addressing the rising costs of housing delivery by providing greater flexibility, reducing holding costs, and freeing up capital for home builders and developers to support new housing projects.

Thank you to our members whose valuable input and support helped shape this positive outcome.

Click here to read the BC government news release.

Read some of the media coverage:

B.C. to let developers defer most fees until occupancy starting in 2026

CHBA BC applauds B.C. development charge amendments

B.C. homebuilders welcome deferral of development fees amid housing slowdown