B.C. moves to ease costs, speed timelines for homebuilders

Key Takeaways:

• Starting in 2026, qualified homebuilders can defer 75% of their development-related charges until occupancy or within four years, instead of paying most costs upfront.
• B.C. will expand the use of on-demand surety bonds, giving builders an alternative to traditional letters of credit and improving access to capital during early project stages.
• By lowering financial barriers and streamlining payments, the province hopes to unlock stalled housing projects and accelerate the delivery of new homes amid high costs and interest rates.

The Whole Story:

The B.C. government is introducing changes aimed at lowering upfront costs for homebuilders and speeding up construction timelines, in an effort to unlock more housing amid the province’s affordability crisis.

Starting Jan. 1, 2026, qualified developers will be allowed to defer a larger portion of development-related fees and use more flexible financial guarantees to begin projects sooner. The changes are part of amendments to the Development Cost Charge and Amenity Cost Charge (Instalments) Regulation, which has remained largely unchanged since 1984.

“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.”

Under the new rules, eligible homebuilders will be able to pay 25% of development and amenity charges when a permit is approved, with the remaining 75% due at occupancy or within four years—whichever comes first. The current regulation requires a minimum one-third payment upfront and full payment within two years.

The province is also expanding the use of on-demand surety bonds as an alternative to traditional letters of credit, allowing developers greater access to capital. On-demand bonds are preferred by builders because they do not tie up credit capacity and can be converted to cash within 15 days if needed, without court involvement.

These financial tools are already in use in cities such as Vancouver, Surrey, Burnaby and Mission, but will now be available provincewide.

The changes follow consultations with local governments and industry organizations, including the Urban Development Institute and the Canadian Home Builders’ Association of BC.

“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,” said Neil Moody, CEO of the Canadian Home Builders’ Association of BC. “This announcement reflects significant collaboration that will help unlock capital, ease cost pressures and support the delivery of more homes.”

Anne McMullin, president and CEO of the Urban Development Institute, said shifting payments closer to project completion will reduce early-stage financing pressure. “This policy lowers early-stage financing costs, frees up capital for construction and helps builders reinvest in new housing,” she said.

The province says the reforms will improve the financial viability of housing projects at a time when interest rates and construction costs remain high.

Local officials welcomed the move, calling it a smart balance between housing demand and sustainable infrastructure delivery.

“This smart, balanced policy shift will support both growth and sustainability,” said Delta Mayor George V. Harvie.

Langley Mayor Nathan Pachal noted that his city has already been piloting the use of on-demand bonds. “It is exciting to see this being rolled out provincewide,” he said.

Municipalities will have 18 months to prepare for the changes, including time for system upgrades and staff training.

The B.C. government has made increasing housing supply a central pillar of its response to affordability challenges. These latest reforms build on previous measures such as zoning changes, expedited permitting, and investments in public housing.

According to the province, a qualified developer is one that has been approved by a surety provider and has more than $50,000 in development-related charges payable to a local government.

More information on the regulatory changes can be found on the B.C. government’s website.