- Development cost charges are set by local bylaw and fund infrastructure such as water, sewer, drainage, roads and parks.
- They are generally paid at subdivision approval or building permit issuance, with instalments in some cases.
- Exemptions, waivers and amenity cost charges all depend on the bylaw and your project, so check the details before you pay.
Many builders and homeowners first meet development fees when a permit is ready to issue and a large charge appears. Understanding what the charge is for, and how it was calculated, is the first step to deciding whether it is right.
This article explains development cost charges and amenity cost charges in British Columbia, when they are paid, who may be exempt, and what you can do if you think a charge is wrong. The details depend on your local government's bylaw, so confirm them before you rely on any figure.
This article covers the law of British Columbia.
What development cost charges are
Development cost charges, often called DCCs, are levied on new development to pay for new or expanded infrastructure. That can include sewer, water, drainage, parks, roads, solid waste and recycling, fire protection and police facilities.
Municipalities, regional districts and TransLink set DCCs by bylaw, and the bylaw needs approval of the Inspector of Municipalities. Charges are calculated per infrastructure category by dividing expected costs by the number of new units served. Rates therefore differ from place to place and by type of development.
When you pay and how instalments work
DCCs are paid at subdivision approval or at building permit issuance. Instalments are available if the charge is $50,000 or more, or if the bylaw allows them for smaller charges.
Under the Province's current description, you pay one-quarter at approval or permit, and the balance by the earlier of four years or 15 business days after written notice that occupancy permit conditions are satisfied, with security such as a letter of credit or surety bond. The instalment rules have changed in recent years, so confirm the current terms with your local government before you plan your cash flow.
Exemptions and waivers
Some development does not pay DCCs. The statutory exemptions are:
- Places of worship.
- Developments with fewer than four self-contained dwelling units, unless the bylaw says otherwise.
- Self-contained units no larger than 29 m².
- Building permits for work costing $50,000 or less.
Local governments may also waive or reduce DCCs for not-for-profit rental housing, supportive living housing and for-profit affordable rental housing, but only by bylaw defining the eligible categories. If you think your project fits, ask whether your local government has such a bylaw. A waiver is not automatic.
DCCs go into separate reserve funds for each category, usable only for capital costs under the DCC bylaw, with an annual report available by June 30. That report can help you see how the money is used.
Amenity cost charges
Amenity cost charges, or ACCs, were introduced by Bill 46 (2023). They are collected from new development that increases population to fund amenities such as community centres, recreation centres, daycares and libraries. The same legislation also widened DCC scope to include fire protection, police and solid waste facilities.
The details of how ACCs are capped, when they are payable and what is exempt vary by local government and should be confirmed with the bylaw and your local government.
What to do if a charge looks wrong
There is no single step that suits every case. How and when a charge can be challenged depends on the bylaw, how the charge was calculated and the stage your project is at. A lawyer can confirm your options and any time limits before you pay or proceed.
- Ask your local government for a written breakdown showing the rate, the category and the number of units or area used.
- Check the calculation against the bylaw that was in force for your application.
- Compare your project with the exemptions and any local waiver categories.
- Ask whether instalments are available and what security is required.
- Keep copies of your application, correspondence and the permit documents.
- Get legal advice before paying under protest, signing agreements or letting a deadline pass.
What to do next
Request the DCC and ACC bylaws that apply to your property, and ask the local government to estimate the charges early, ideally before you finalize a budget or purchase. If the figures are large or unclear, speak with a lawyer or accountant about timing, exemptions and your options.
Frequently asked questions
What is the difference between DCCs and ACCs?
DCCs pay for new or expanded infrastructure such as sewer, water, drainage, roads, parks, fire protection, police and solid waste facilities. ACCs are collected from new development that increases population to fund amenities such as community centres, recreation centres, daycares and libraries.
When do I have to pay DCCs?
DCCs are paid at subdivision approval or at building permit issuance. Instalments may be available, with security required, so ask your local government about the current terms.
Are small projects exempt?
Developments with fewer than four self-contained dwelling units are exempt unless the bylaw says otherwise, and so are self-contained units no larger than 29 m² and building permits for work costing $50,000 or less. Check your local bylaw, because it may change the result for fewer than four units.
Can I dispute a DCC or ACC?
It depends on the bylaw, how the charge was calculated and the stage of your project. Start by asking for a written breakdown and checking exemptions, then get legal advice about options and time limits before you pay or proceed.
Sources
- Province of BC – Development cost charges — www2.gov.bc.ca
- Province of BC – Development cost charge exemptions — www2.gov.bc.ca
- Province of BC – Development finance — www2.gov.bc.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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