B.C. extends DCC protection to help home developers

Key Takeaways:

• The B.C. government has doubled the protection period from 12 to 24 months for eligible Metro Vancouver projects, helping developers avoid sudden cost increases and freeing up capital to keep housing builds on track.
• The move comes amid rising construction costs, slower presales, and layoffs across the development sector, with builders warning that financial uncertainty is putting many projects at risk.
• The change supports access to $250 million in federal infrastructure funding and complements other provincial measures, such as deferred development fees, aimed at boosting housing supply during a period of economic volatility.

The Whole Story:

The B.C. government has moved to give homebuilders in Metro Vancouver more financial certainty, extending the length of time projects are protected from increases to regional development cost charges (DCCs). The change comes as developers across Canada face increasing financial strain, rising construction costs, and a series of high-profile layoffs.

Under the new rules, eligible residential and commercial projects will be shielded from DCC hikes for 24 months—double the previous 12-month window. The province says this could free up hundreds of millions in capital, helping builders advance housing projects that might otherwise be stalled or cancelled.

“There’s no question that global financial uncertainty and rising costs of goods and skilled labour have challenged the housing market in cities all over the world,” said Ravi Kahlon, B.C.’s Minister of Housing and Municipal Affairs. “That’s why we’re taking more steps to ensure major housing projects in our biggest region have the financial certainty they need to succeed.”

The move follows warnings from the Urban Development Institute and major homebuilders that escalating fees and volatile costs are threatening the viability of housing projects. In recent months, some developers—citing construction cost pressures and slower presales—have laid off staff and put projects on hold. The Fraser Institute and other analysts have pointed to a broader productivity slump in the sector, adding urgency to policy relief efforts.

The DCC rate freeze supports Metro Vancouver’s eligibility for $250 million in federal infrastructure funding and will apply to development cost bylaws governing water, wastewater treatment and regional parks. Officials say it allows the region to continue upgrading critical infrastructure without pushing costs onto future homeowners.

“This change reflects the realities of today’s development environment,” said Anne McMullin, president and CEO of the Urban Development Institute. “Without it, many projects would not have been able to proceed.”

The change builds on recent provincial reforms allowing builders across B.C. to defer 75% of certain development fees for up to four years or until occupancy, part of a broader effort to reduce the cost of delivering new homes.

For developers like Townline, Onni Group, and Bosa Properties, the extended timeline helps protect pipeline projects from financial volatility and offers much-needed stability in a challenging market.

The regulatory change, enabled by provisions in the Miscellaneous Statutes Amendment Act, 2025, applies to qualifying projects that submitted applications before March 22, 2024, and receive permits between March 23, 2025, and March 22, 2026.