- Development cost charges are set by local bylaw, approved by the Inspector of Municipalities, to pay for new or expanded infrastructure.
- Developments with fewer than four self-contained units, units no larger than 29 m², and building permits for work costing $50,000 or less are among the statutory exemptions.
- Charges are paid at subdivision approval or building permit issuance, and larger charges can be paid in instalments with security.
Adding a basement suite, a laneway or garden suite, or a small multi-unit building can come with a charge many homeowners do not expect: a development cost charge, often called a DCC. Whether you pay one, and how much, depends heavily on your local government's bylaw and the size of your project.
This article explains what DCCs are, when they fall due, the exemptions most likely to matter for small projects, and how instalments and waivers work. Your own municipality or regional district sets the details, so treat this as a map for the questions to ask.
This article covers the law of British Columbia.
What development cost charges are and who sets them
Development cost charges 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 the approval of the Inspector of Municipalities. The charge is calculated for each infrastructure category by dividing expected costs by the number of new units served. Because each local government has its own bylaw, the amount for the same project can differ from one community to the next.
When DCCs are due
DCCs are paid at subdivision approval or at building permit issuance. For most suite and laneway projects, that means the charge, if any applies, is dealt with when your building permit is issued.
A building permit is a separate requirement. The Province says the required permits must be obtained before any stage of a building or renovation project begins. Plumbing, electrical, mechanical or demolition work may need separate permits as well.
Exemptions that matter for small projects
The statutory exemptions include 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, and building permits for work costing $50,000 or less. The words "unless the bylaw says otherwise" matter: your local bylaw may change how the fewer-than-four-units exemption applies.
| Exemption | What it covers |
|---|---|
| Small developments | Fewer than four self-contained dwelling units, unless the bylaw says otherwise |
| Small units | Self-contained units no larger than 29 m² |
| Low-cost work | Building permits for work costing $50,000 or less |
| Places of worship | Places of worship |
A single suite or laneway home will often fall under the first of these, but only your local bylaw and the project details can confirm it. Do not assume an exemption applies without checking.
Instalments, waivers and where the money goes
Instalments are available if the charge is $50,000 or more, or if the bylaw allows them for smaller charges. 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. Security such as a letter of credit or surety bond is required.
Instalment terms have changed over time, so confirm them against the current regulation and your local bylaw before relying on them.
Local governments may also waive or reduce DCCs, by bylaw defining eligible categories, for not-for-profit rental housing, supportive living housing and for-profit affordable rental housing. These waivers are optional, so a local government is not required to offer them.
DCC money goes into separate reserve funds for each category. It can be used only for capital costs under the DCC bylaw, and an annual report is available by June 30.
Amenity cost charges and what to do next
Amenity cost charges (ACCs) are a different charge. Introduced by Bill 46 in 2023, they are collected from new development that increases population, to fund amenities such as community centres, recreation centres, daycares and libraries. How ACCs apply to small projects varies by local government, so ask about them separately.
- Find your local government's current DCC bylaw and read how it treats suites, laneway homes and small projects.
- Ask whether the fewer-than-four-units exemption applies or the bylaw changes it.
- Check your unit size and your building permit work cost against the exemption thresholds.
- Ask whether any ACC applies to your project.
- Ask how instalments work and what security is accepted if your charge is large.
- Contact the building department about permit requirements before work begins.
If the numbers are large or the bylaw is unclear, a lawyer or accountant can help you read the bylaw and plan your costs.
Frequently asked questions
Will I pay DCCs on a basement suite?
It depends on your local bylaw. Developments with fewer than four self-contained dwelling units are exempt unless the bylaw says otherwise, and units no larger than 29 m² are also exempt. Ask your local government to confirm how it applies to your project.
Can DCCs be reduced for rental housing?
Local governments may waive or reduce DCCs, by bylaw, for not-for-profit rental housing, supportive living housing and for-profit affordable rental housing. Waivers are optional, so check whether your local government has adopted one.
Are amenity cost charges the same as DCCs?
No. ACCs are collected from new development that increases population to fund amenities such as community centres, recreation centres, daycares and libraries. Their details vary by local government.
If my project is exempt from DCCs, do I still need a building permit?
A development cost charge exemption is about the charge itself, so you should not treat it as a substitute for any permit your project needs, and the exemptions for minor work that apply to building permits vary by local government. The Province says required permits must be obtained before any stage of a building or renovation project begins. Requirements and exemptions for minor work vary by local government, so contact yours first.
Sources
- Province of BC – Building or renovation permits — www2.gov.bc.ca
- 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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