Development Cost Charges

Overview

​Metro Vancouver collects development cost charges (DCCs) for new residential and non-residential 
developments in the region to pay for new infrastructure needed to provide services to the future occupants of these buildings. These charges are defined in bylaws of the legal entity responsible for the infrastructure.

Water Development Cost Charge

Metro Vancouver is in the process of establishing a new DCC for regional water infrastructure. The concept of funding regional water infrastructure through DCCs has been encouraged by most Greater Vancouver Water District (GVWD) members, and is a critical component of our long term financial plan.

Until now the larger regional water infrastructure – water treatment facilities, reservoirs, water mains and pump stations that deliver the water to the municipalities – have primarily been paid for through user fees. The Metro Vancouver Board has recommended the implementation of a water DCC as one funding tool that enables development to contribute towards the cost of the infrastructure needed to service our growing region in its 2019–22 Board Strategic Plan.

Implementing A Water DCC

The Greater Vancouver Water District is guided by distinct legislation. An evolved interpretation by the Province on our legislative environment was proposed to allow the GVWD to collect DCCs under the Local Government Act. The Local Government Act provides local governments and greater boards, such as the Greater Vancouver Water District, the authority to charge DCCs in relation to servicing, directly or indirectly, the development for which the charge is imposed. This provision allows the GVWD to establish a DCC bylaw in accordance with the Local Government Act for the purpose of raising funds to pay for population growth related infrastructure costs.

Water DCC Rates

A set of proposed water DCC rates was developed and taken to the GVWD Board in spring 2022. The rates in principle which include the application of interest are as follows:
ResidentialTownhouse ApartmentNon-Residential
​$6,692 / unit
​$5,696 / unit$4,261 / unit​​$3.39 / ft2 of floor area

A list of DCC water capital growth projects can be found in the DCC Capital Growth Program 2021 Budget.

Water DCC Framework

The framework of the water DCC implementation program has been designed to align with the liquid waste DCC policy framework, including the following:

  • Land use categories
    DCCs are to be based on four separate land use categories: residential, townhouse, apartment, and non-residential.
  • Units for charging DCCs
    Residential developments will be charged per unit/dwelling, while a DCC for a non-residential development will be charged per square foot.
  • Assist factor
    The assist factor is the portion of the growth project that is to be funded from water sales to GVWD members rather than DCCs. Increasing the assist factor shifts more of the cost of system expansion (growth) from DCCs to water sales.
The one significant point of difference between the proposed water DCC framework and the existing liquid waste DCC policy framework is that the water DCC implementation program will operate at the regional level with one fee structure. The liquid waste DCC program is separated into four sewerage areas: Vancouver, Lulu Island West, North Shore, and Fraser. Each sewerage area has its own unique fee structure based on its development requirements.

Impact On The Region

Water DCCs will ensure water infrastructure can consistently and reliably be provided to new developments and address the needs of region’s growing population. Rather than an increase in existing user water rates to fund growth infrastructure, DCCs attribute the costs of growth infrastructure to those new developments that benefit from those costs. DCCs have not been estimated to significantly impact housing affordability nor impair development in the region.

Your Opinion Counts

Metro Vancouver is committed to engaging audiences who may be impacted by or have an interest in the proposed water development cost charge implementation program. They will be asked to provide feedback during our engagement period. Key examples include:

  • Government and regulatory agencies, including Indigenous Nations in BC*, provincial government, and member jurisdictions
  • Development and building industry, including developers, urban development associations, business associations and professional associations.
  • Metro Vancouver residents
* While Indigenous Peoples will be invited to participate in public engagement activities, a separate Indigenous engagement strategy outlines a government-to-government engagement approach with Indigenous Nations.

Public Engagement

We would like your input. Opportunities to provide feedback is available now until June 23, 2022.

Your feedback will be considered in a proposed bylaw to the GVWD Board in July 2022. Following the endorsement by the Board, a bylaw would then be forwarded for approval by the Inspector of Municipalities and subsequently for final approval by the GVWD Board.

Webinar

Two dates to choose from:

Friday, June 3, 2022 – 2:00 pm to 3:00 pm

Monday, June 6, 2022 – 2:00 pm to 3:00 pm

Sign up for a webinar

Feedback Form

Complete by Thursday, June 23, 2022.

Complete a feedback form

GVS&DD Liquid Waste DCC Update

In 2018 the Greater Vancouver Sewerage & Drainage District (GVS&DD) Board updated its DCCs for the first time since DCCs were introduced in 1997. As part of that process, industry feedback indicated that more frequent updates were preferable. As a result, Metro Vancouver committed to regularly scheduled updates of its DCC Bylaw.

Following analysis and engagement in 2020/21, a set of draft DCC rates in principle was developed and taken to the GVS&DD Board in July 2021; the Board directed staff to use the rates in principle in engagement. The draft DCC Bylaw is currently with the Inspector of Municipalities for their review and consideration. The rates in principle which include the application of interest are as follows:

Sewerage Area
ResidentialTownhouse ApartmentNon-Residential
​Fraser​$6,254 / unit
​$5,390 / unit$4,269 / unit​​$3.30 / ft2 of floor area
Lulu Island West​​$3,313 / unit$2,756 / unit​
$2,042 / unit​$1.54 / ft2 of floor area​
​North Shore$3,300 / unit​$2,786 / unit​$2,030 / unit​$1.67 / ft2 of floor area
​Vancouver$3,335 / unit​​$2,983 / unit​$1,988 / unit
​$1.63 / ft2 of floor area

View the list of DCC Liquid Waste capital growth projects.

Following upcoming engagement in Q3 2021, Metro Vancouver will prepare updated liquid waste DCC rates to take to the GVS&DD Board for approval.


Timeline


 

 

Committee and Board approval for engagementFalse1Committee and Board approval for engagement<div class="ExternalClassE56C8D7EF5254D1A937A1AE487F65D0D">Spring 2022<br></div>
EngagementTrue2Engagement<div class="ExternalClass628A6FE6855B43E4B849A2A2B35926E1">Summer 2022<br></div>
Post-engagement and implementationFalse3Post-engagement and implementation<div class="ExternalClassCF4DB64229E946A484DD66D4F3D50103">Fall/Winter 2022<br></div>


Contact


  • Financial Services

     

    ​604-432-6249​

     Email
     Metro Vancouver 26th floor, Metrotower III 4515 Central Boulevard, Burnaby, BC V5H 0C6


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