More flexibility for development charges will unlock more homes for people

The Province of British Columbia will implement new measures to expedite home construction by alleviating financial burdens on builders. Housing Minister Ravi Kahlon highlighted a commitment to innovative solutions for affordable housing access. The regulatory changes will extend payment timelines for development charges from two years to four years, permitting builders to pay 25% upon permit approval and the remaining 75% at occupancy. This initiative aims to enhance the viability of housing projects, especially as construction costs and interest rates remain high. Furthermore, the Province will amend the Development Cost Charge and Amenity Cost Charge regulations to allow broader use of on-demand surety bonds, which are preferred by builders over traditional financial tools.

Currently, on-demand surety bonds are utilized in 40 municipalities, including major cities like Vancouver and Surrey. The changes will apply to qualified developers with charges exceeding $50,000. These reforms are set to come into effect on January 1, 2026, allowing local governments adequate time for necessary adjustments.