The B.C. government says it is making changes to how home builders pay for new housing projects, in an effort to spur more development.
The changes announced include reducing upfront development costs, and a more flexible timeline for builders to pay.
Minister of Housing and Municipal Affairs Ravi Kahlon told reporters the government was committed to finding innovative solutions for home construction during a July 2 news conference about the government’s changes.
“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.,” Kahlon said.
As part of the announcement, the B.C. government will be amending the Development Cost Charge and Amenity Cost Charge Regulation. The regulations have remained unchanged since 1984, according to the government. The move will allow for more builders to use on-demand surety bonds around the province.
The bonds are “financial guarantees” homebuilders provide to demonstrate their commitment to fulfilling the construction contract, the government said. The bonds are currently used in 40 municipalities in Canada, including Burnaby, Surrey, Vancouver, and Mission in B.C.
Any builders developing projects in communities with a development cost charge, amenity cost charge, or a school-site acquisition charge will benefit from the changes, the government said.
Homebuilders will also now have up to four years to pay the charges in full, instead of two. A 25 percent payment is required when a permit is approved, while the rest is due at occupancy or within four years, whichever comes first, the province said.
It’s a move Neil Moody, CEO of the Canadian Home Builders’ Association of B.C., said was welcome.
“The ability to defer a portion of development charges and use on-demand surety bonds is a practical measure to address the current economic realities of building housing across British Columbia,” he said.
Moody added that the changes would help unlock capital, reduce cost pressure, and lead to the delivery of more homes.
The need to pay the fees upfront had become a problem for builders, according to president of the Urban Development Institute Anne McMullin.
“By shifting payment to occupancy, the provincial government is enabling more projects to move forward,” she said during the news conference.
The changes are expected to come into effect on Jan. 1, 2026, which will allow local governments time to upgrade systems and train staff, the provincial government said.
