More flexibility for development charges will unlock more homes for people

More affordable homes will be on the way quicker as the Province takes steps to speed up construction timelines and reduce up-front costs for homebuilders.

“We are committed to finding innovative and cost-effective solutions to build housing, so everyone has a fair chance to live in communities where they work and belong,” said Ravi Kahlon, Minister of Housing and Municipal Affairs. “These changes are about supporting housing development and easing the financial burden on builders and developers so they can get shovels in the ground faster to help unlock more homes for people in B.C.”

The Province is creating more flexible and extended payment timelines for homebuilders, so more homes can continue to be built at a time when construction costs and interest rates are high. This will improve the viability of housing projects as homebuilders can invest in new housing projects sooner. Lower carrying costs will also help unlock more housing developments that need additional capital.

Government will amend the Development Cost Charge and Amenity Cost Charge (Instalments) Regulation to expand the use of on-demand surety bonds provincewide. On-demand surety bonds are financial guarantees that homebuilders provide to give assurances that they will fulfil their construction contract. Currently, homebuilders are able to use on-demand surety bonds in 40 municipalities across Canada, including Burnaby, Surrey, Vancouver and Mission.

Other municipalities rely on a different financial tool, known as irrevocable letters of credit from a bank. Homebuilders prefer on-demand surety bonds because they do not restrict a developer’s access to credit, freeing homebuilders to move projects from start to finish and build more housing.

The changes will apply to qualified developers in communities with a development cost charge, amenity cost charge or a school-site acquisition charge. As well, homebuilders will have four years, rather than two, to pay the charges. They will be able to pay 25% at permit approval and the remaining 75% at occupancy or within four years, whichever comes first.

These new actions to support housing goals are a result of collaboration between the Province, B.C.’s development and homebuilding industry associations and local governments.

The changes are expected to come into effect on Jan. 1, 2026. This will provide local governments time for system upgrades, staff training and planning.

These regulatory improvements are part of the Province’s commitment to increase the supply of homes people can afford in a community they love.