BC Realtor Community Amenity Contribution Guide: CAC, Rezoning Costs & Client Advisory (2026)
Community Amenity Contributions are one of the least understood — and highest-cost — components of a rezoning application in BC. Here's what every realtor advising developer or landowner clients needs to know.
What Are Community Amenity Contributions?
When a municipality approves a rezoning application that increases the permitted density on a piece of land, the landowner captures a significant portion of the resulting value uplift — the difference between what the land was worth at its original zoning and what it is worth at the new, higher-density zoning.
Community Amenity Contributions (CACs) are the mechanism by which municipalities negotiate to share a portion of that value uplift with the public. In exchange for the density increase granted through rezoning, the landowner or developer contributes either cash or in-kind amenities — parks, community centres, childcare spaces, affordable housing units, public art, or other public benefits identified in the municipality's policy.
CACs are not a tax. They are not automatically levied. They arise from the discretionary nature of rezoning approval — council votes to approve a rezoning, and as part of that approval, negotiates a contribution from the applicant. In practice, because applicants need council approval to proceed with higher-density development, CACs are effectively mandatory in any municipality with a CAC policy.
The Legal Foundation for CACs in BC
CACs in BC derive from the local government's general statutory authority under the Local Government Act (Part 14) to negotiate amenity contributions as a condition of rezoning. Unlike Development Cost Charges (DCCs), which are levied by bylaw under a statutory formula, CACs are negotiated case-by-case (or set by policy) and typically secured through:
- A Section 219 covenant registered on title (Land Title Act) — the covenant obligates the owner to pay the CAC or deliver the amenity before certain development milestones (typically issuance of a building permit)
- A Rezoning bylaw condition that references the covenant or a written amenity contribution agreement
- An Amenity contribution agreement (ACA) executed between the developer and municipality — often registered as a covenant on title
The covenant remains on title until the obligation is fulfilled. Realtors and buyers purchasing a rezoned property must search title to confirm whether any outstanding CAC covenants remain and whether they have been discharged.
⚠️ Always Search Title for CAC Covenants
A buyer purchasing a rezoned development site may inherit outstanding CAC obligations if the covenant has not been discharged. This is particularly common in assignments of purchase agreements for pre-construction projects. Confirm discharge status on myLTSA before closing.
How CACs Are Calculated
Municipalities use different methodologies for calculating CACs. Understanding the approach used by the relevant municipality is essential for advising clients on the total cost of a rezoning application.
Method 1: Negotiated Value Uplift Share
The most traditional BC approach — used historically in Vancouver and larger municipalities — involves a negotiated share of the value uplift created by rezoning. The municipality engages an appraiser to assess the difference in land value before and after the density increase, then negotiates a CAC equal to a percentage of that uplift (commonly 70–80% in Vancouver).
Example: A property rezoned from RS-1 (single family) to RM-4 (townhouse) in East Vancouver increases in value from $2.5M to $5.5M. Value uplift = $3M. At 75%, the CAC would be $2.25M — payable in cash or through in-kind amenity delivery (affordable units, daycare spaces, etc.).
Method 2: Per-Square-Metre Rate Schedule
Many municipalities have moved toward standardized CAC rate schedules — a flat dollar amount per square metre (or per unit) of new residential floor area created by the rezoning. This provides more predictability for applicants at the early project pro-forma stage.
Approximate CAC Ranges by Municipality (2026)
Note: These are approximate ranges based on publicly available policies as of 2025–2026. Actual CACs are negotiated — confirm with each municipality's planning department.
| Municipality | Typical CAC Approach | Rate Range |
|---|---|---|
| City of Vancouver | Negotiated value uplift (70–80% share) | $50–$250/sq ft of new FSR (case by case) |
| Burnaby | Published rate schedule | ~$35–$75/sq ft depending on zone |
| Surrey | Negotiated / Area-specific | $15–$40/sq ft new residential floor area |
| Coquitlam | Rate schedule (community plan areas) | $20–$55/sq ft |
| North Vancouver (City) | Negotiated | Case by case — generally 60–75% of uplift |
| Kelowna | Published policy with standard contributions | $5–$20/sq ft new residential |
CAC vs. Development Cost Charges (DCCs)
Realtors often confuse CACs with Development Cost Charges (DCCs). While both are costs of development, they operate differently:
Community Amenity Contributions (CACs)
- • Triggered by rezoning
- • Negotiated or rate-scheduled
- • Fund public amenities (parks, affordable housing, childcare)
- • Secured by covenant on title
- • No statutory formula — council discretion
- • Paid before building permit or as conditions are met
Development Cost Charges (DCCs)
- • Triggered by building permit or subdivision
- • Levied by bylaw (statutory formula)
- • Fund infrastructure (roads, water, sewer, parks)
- • Not registered on title
- • Published rate schedule, non-negotiable
- • Paid at building permit issuance
A typical Metro Vancouver rezoning project will face both CACs (negotiated at rezoning) and DCCs (levied at building permit). Realtors advising clients on development feasibility must account for both in any pro-forma analysis.
CACs and SSMUH: The Key Intersection
BC's Bill 44 SSMUH legislation (discussed in our SSMUH Guide) has a direct impact on CAC applicability. Because SSMUH allows 3–6 units by right on single-family lots without a rezoning, the CAC trigger (a rezoning approval) does not apply to SSMUH-compliant developments.
This is intentional — the province wanted to eliminate cost barriers to small-scale infill housing. However, this exemption does not apply to:
- Developments above the SSMUH unit cap requiring a rezoning application (e.g., 12-unit townhouse project on RS-1 land)
- Properties in TOD zones seeking densities above the provincially mandated minimums
- Larger assembly sites where a comprehensive development permit is required
For clients pursuing higher-density projects — anything beyond the SSMUH baseline — CACs remain a significant cost that must be factored into acquisition pricing and project pro-formas.
How CACs Affect Land Value and Deal Structure
CACs directly affect land value in the context of rezoning applications. Here is how the economics typically work:
Sample Land Value Analysis: East Vancouver Townhouse Site
Illustrative only. Actual CACs are negotiated — consult a development consultant for project-specific analysis.
The key insight for realtors: a seller who owns a property with strong rezoning potential may expect a price premium reflecting the value uplift — but sophisticated developer buyers will price in the CAC cost when making offers. The net uplift retained by the owner (after CAC) is what developers factor into land value, not the gross uplift.
Types of CAC Contributions
CACs can take many forms beyond simple cash payments. Understanding what types of contributions are accepted helps clients structure the most financially advantageous arrangement:
Cash Contribution
The most common form. Paid to the municipality prior to building permit issuance, or on a milestone schedule set out in the covenant.
Affordable Housing Units
Deed-restricted affordable units conveyed to the municipality, a housing authority, or a non-profit. Common in Vancouver under the Moderate Income Rental Housing Pilot and similar programs.
Land Dedication
Dedication of a portion of the site for park, greenway, or public plaza. Particularly common on larger parcels in greenway corridors.
Community Facility Space
Daycare spaces, community centre rooms, library space, or cultural facilities built within the development and conveyed to the municipality.
Public Art
Commissioned public art installed on the site or in a publicly accessible location. Typically a smaller component of a larger CAC package.
Transportation Infrastructure
Bike lanes, pedestrian connections, streetscape improvements, or transit infrastructure improvements adjacent to the development site.
The Rezoning and CAC Timeline
Understanding where CACs fit in the rezoning timeline helps realtors advise clients on when costs are incurred and how they affect financing strategy:
Owner meets with planning staff to discuss development concept, likely density, and municipal priorities. Informal discussion of CAC expectations may occur.
Application submitted with development concept, traffic study, community engagement plan. CAC amount not yet formalized.
City staff prepare a report to council recommending approval conditions including the CAC amount. Negotiations with applicant occur during this period.
Council hears from the public before voting. CAC terms are part of the rezoning conditions presented at the hearing.
Council adopts the rezoning bylaw. CAC is secured via covenant on title, registered concurrent with or shortly after bylaw adoption.
CAC covenant typically requires payment (or proof of amenity delivery) before a building permit will be issued. This is when cash CACs are paid.
Client Advisory Scripts: Handling CAC Questions
Developer Buyer: "How do I factor CACs into my land offer?"
"You need to work backward from the finished product. Start with your total revenue from unit sales, subtract construction, carrying costs, and fees — the residual is what the land is worth to you. CACs are typically paid before building permit, so they reduce the residual land value available for acquisition. The challenge is that you won't know the exact CAC amount until the staff report is finalized, often 12–18 months into the rezoning process. I'd recommend including a subject to rezoning and CAC finalization at an acceptable amount clause in your offer, or negotiating a price adjustment mechanism."
Seller Client: "I heard I have to pay a CAC — is that right?"
"The CAC obligation follows the rezoning application and is attached to the property through a covenant on title. If you as the seller are pursuing the rezoning before selling, you'd be responsible for the CAC. If you sell the property as-is with rezoning potential, the buyer typically takes on the CAC obligation as part of their development costs — which is why they'll factor it into their land offer. I can help you think through whether rezoning before sale makes sense, or whether selling as-is to a developer-buyer delivers better net proceeds given the timeline risk."
Buyer Client: "The listing mentions a CAC covenant on title — what does that mean for me?"
"It means there's an outstanding financial obligation attached to the property that must be fulfilled before certain development milestones — typically before a building permit can be issued. You need to confirm the CAC amount, the payment terms, and whether it's been discharged or is still outstanding. I'd recommend your lawyer do a full title review and request a copy of the covenant document from the vendor. If the CAC is substantial and undisclosed, that may be grounds to renegotiate the purchase price."
Due Diligence for Realtors: CAC Checklist
Common Realtor Mistakes with CACs
✗ Mistake: Failing to search title for CAC covenants before listing a rezoned property
Risk: A buyer discovers a $1.5M CAC covenant post-offer that was not disclosed. The seller may face a breach of disclosure claim and the deal may collapse.
✗ Mistake: Telling a client their SSMUH 4-plex project will have no CAC without verifying
Risk: If the project triggers a variance or development permit above the as-of-right allowance, a CAC may still apply. Confirm with the municipality.
✗ Mistake: Quoting CAC amounts from published rate schedules as fixed costs
Risk: CAC rates can change, and published schedules may not reflect site-specific negotiations. Always confirm the current policy directly with the planning department.
✗ Mistake: Not explaining the difference between CACs and DCCs to developer clients
Risk: A developer client confuses a CAC covenant (negotiated) with a DCC receipt (statutory) and believes the CAC has been paid when it has not — leading to a building permit refusal.
The Future of CACs in BC
BC's housing reform agenda has directly impacted the CAC landscape. As SSMUH removes CAC exposure for the most common form of infill development, municipalities are navigating how to fund public amenities without the density-linked revenue that CACs traditionally provided.
Several trends realtors should monitor:
- Increased DCCs: Some municipalities are expanding DCC programs to recover more infrastructure costs at the building permit stage, compensating for CAC revenue lost from SSMUH developments
- Standardized CAC schedules: More municipalities are moving toward published, predictable CAC rate schedules rather than case-by-case negotiations, reducing uncertainty for developers
- Affordable housing requirements: The province has signalled interest in stronger inclusionary zoning — requiring a set percentage of affordable units in larger developments as a condition of approval, complementing or replacing cash CACs
- CAC accountability reforms: Municipalities face growing pressure to demonstrate how CAC funds are spent and to connect contributions to specific amenity projects in the development's neighbourhood
Key Takeaways for BC Realtors
Community Amenity Contributions are not a niche topic for specialist development realtors — they are a material cost of rezoning that directly affects land value, deal structure, and client outcomes. Any realtor working with:
- Developer or builder clients acquiring land for multi-unit projects
- Sellers marketing properties with rezoning potential
- Buyers purchasing already-rezoned sites with outstanding covenant obligations
- Clients pursuing larger developments above the SSMUH baseline
...needs to understand CACs and how to communicate their financial impact clearly. The realtors who can facilitate an informed conversation about CAC costs — including the difference between negotiated uplift sharing and flat rate schedules, the covenant mechanics, and the interplay with SSMUH — will provide meaningfully more value to development-oriented clients than those who simply hand off to a consultant.
Frequently Asked Questions
What is a Community Amenity Contribution (CAC) in BC?
A Community Amenity Contribution (CAC) is a negotiated payment or in-kind contribution made by a developer or landowner to a municipality in exchange for a rezoning approval that increases land value or density. CACs fund public amenities like parks, community centres, daycares, and affordable housing units.
Are CACs mandatory in BC?
CACs are technically negotiated and not legally mandated — they arise from council's discretion in approving rezoning applications. However, many municipalities publish standard CAC rates or policies that effectively make them a predictable cost of rezoning. Bill 44 (2023) and related legislation limit CAC policies for SSMUH-eligible developments.
How are CACs calculated in BC?
CACs are typically calculated as a percentage of the value uplift created by rezoning (the difference in land value before and after the density increase). Some municipalities use a flat per-square-metre rate on new floor area. Vancouver has historically used negotiated CACs; other cities like Burnaby and Surrey use more standardized rate schedules.
How is a CAC secured on title in BC?
CACs are commonly secured through a Section 219 covenant registered on the property title under the BC Land Title Act. This covenant is typically a condition of the rezoning bylaw and must be discharged (through payment or delivery of the amenity) before a building permit or subdivision approval will be issued.
Do CACs affect SSMUH (Bill 44) properties?
BC's SSMUH legislation (Bill 44) limits municipalities from charging CACs on SSMUH-compliant developments where no rezoning is required. Since SSMUH eliminates the rezoning step for 3–6 unit developments, the CAC trigger (a rezoning approval) typically does not apply. Larger developments requiring rezoning above the SSMUH baseline remain subject to CACs.
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