BC Development Cost Charges (DCCs): A Realtor's Complete Guide to New Construction & Subdivision Fees
Development Cost Charges are one of the most significant cost factors in new BC construction — yet many realtors cannot explain the difference between a DCC, a CAC, and a school site charge. This guide breaks down how DCCs are calculated, who ultimately pays them, how they affect presale pricing across different municipalities, and what realtors working with investors or developers need to know.
What Are Development Cost Charges?
Development Cost Charges (DCCs) are statutory levies imposed by local governments under Part 14 of BC's Local Government Act. The legal basis is straightforward: when new housing or commercial development is added to a municipality, that development generates demand for new infrastructure — roads, water mains, sanitary sewers, stormwater drainage, and park land. DCCs are the mechanism by which municipalities recover a proportionate share of those capital costs from the developers creating the demand.
DCCs are established by bylaw — each municipality and regional district sets its own rates, which can vary considerably. The rates are typically expressed as:
- →Per dwelling unit (for residential development — different rates for single-family, townhouse, apartment)
- →Per square metre of gross floor area (for commercial, industrial, or institutional development)
- →Per hectare of land area (for subdivision of raw land)
DCCs are collected at the building permit stage. Before a municipality issues a building permit, the developer must pay DCCs in full or provide a satisfactory letter of credit. This means DCCs are a known, calculable cost before construction begins — they are built into the developer's project pro forma from day one.
DCCs vs. CACs vs. School Site Charges: The Three-Levy Framework
New development in BC is typically subject to three distinct types of development contributions, often confused with each other:
| Charge Type | Legal Basis | Set By | Trigger | Negotiable? |
|---|---|---|---|---|
| DCC (Development Cost Charge) | Local Government Act Part 14 | Municipality / Regional District bylaw | Building permit or subdivision approval | No — set by formula |
| CAC (Community Amenity Contribution) | Local Government Act s.515 | Negotiated at rezoning | Rezoning application (density increase) | Yes — negotiated case by case |
| School Site Acquisition Charge (SSAC) | School Act s.175 | School district bylaw | Building permit (residential only) | No — set by formula |
| Amenity Cost Charge (ACC) | LGA 2022 amendment | Municipality bylaw | Building permit (new tool, replacing some CAC use) | No — set by formula |
The 2022 Local Government Act amendments introduced Amenity Cost Charges (ACCs) as a new statutory tool alongside DCCs. ACCs allow municipalities to charge for amenities — community centres, childcare, public art — through a bylaw formula rather than project-by-project negotiation. As of 2026, municipalities are transitioning from CAC negotiations toward ACC bylaws for greater transparency and consistency.
DCC Components: What the Money Funds
Most BC municipalities structure their DCC bylaws around five infrastructure components. Each has a separate rate, and the total DCC is the sum of all applicable components:
Illustrative DCC Rates Across BC Municipalities
DCC rates vary enormously between municipalities, reflecting different infrastructure needs, growth pressures, and existing system capacity. The following illustrative ranges give realtors a sense of relative magnitude — always verify current rates directly with the municipality, as bylaws are updated regularly.
| Municipality | Apartment Unit (approx) | Townhouse Unit (approx) | Single-Family (approx) |
|---|---|---|---|
| City of Vancouver | $8,000–$15,000 | $12,000–$20,000 | $15,000–$25,000 |
| Burnaby | $12,000–$18,000 | $15,000–$22,000 | $18,000–$28,000 |
| Richmond | $10,000–$16,000 | $13,000–$20,000 | $16,000–$24,000 |
| Surrey | $15,000–$22,000 | $18,000–$28,000 | $22,000–$35,000 |
| Langley Township | $18,000–$28,000 | $22,000–$32,000 | $28,000–$42,000 |
| Kelowna | $14,000–$22,000 | $18,000–$26,000 | $22,000–$32,000 |
| Victoria / Saanich | $10,000–$18,000 | $14,000–$22,000 | $18,000–$28,000 |
| Prince George | $5,000–$10,000 | $7,000–$13,000 | $10,000–$18,000 |
⚠️ These are illustrative ranges only. DCC rates change frequently as municipalities update their bylaws. Always verify current rates at the municipal hall or on the municipality's website before including in a developer client's pro forma.
In addition to municipal DCCs, many projects also pay Metro Vancouver Regional District DCCs (for municipalities within Metro Vancouver), school site acquisition charges from the school district, and any applicable ACC charges. The total charge stack can be considerable — for a Surrey ground-oriented development, the combined municipal DCC plus regional DCC plus school site charge on a single-family lot can approach $50,000–$70,000.
How DCCs Are Passed Through to Buyers
DCCs are a developer cost — not a buyer-facing fee. Buyers of new construction do not pay DCCs separately; they are embedded in the unit price. Understanding the pass-through mechanism helps realtors explain why new construction prices differ between municipalities and why certain submarkets have higher price floors even for similar unit sizes.
The mechanism:
For presale buyers, this means the DCC cost is already baked into the price they agreed to pay when they signed the presale contract. If the municipality subsequently increases DCC rates (which happens when municipalities update their bylaws), the developer absorbs the increase if the permit was already issued — the buyer's price does not change. However, if permits had not been issued at the time of the presale, a DCC increase can affect developer margins and, in extreme cases, project viability.
DCC Exemptions and Waivers
The Local Government Act provides several statutory exemptions from DCCs:
| Exemption Type | What Is Exempt | Notes |
|---|---|---|
| Existing floor area | No DCCs on renovation or replacement of existing lawful floor area (up to the same GFA) | Only new floor area added triggers DCCs — preserves existing buildings |
| Non-profit housing — waiver | Municipality may waive up to 100% of DCCs for non-profit rental or social housing | Discretionary — not automatic; must apply and qualify |
| Accessory dwelling units | Some municipalities exempt or reduce DCCs for secondary suites and laneway homes under SSMUH policy | Varies by municipality; confirm with local DCC bylaw |
| Tiny homes below threshold | Some municipalities exempt very small units (under 29 m²) from residential DCC component | Not universal — check bylaw |
| Agricultural uses | Farm buildings on ALR land are typically exempt from DCCs if used for farm purposes | Non-farm use on ALR land is not exempt |
| BC Housing / provincially-funded affordable housing | Province and municipality often negotiate DCC reduction or waiver for provincially-funded housing programs | Project-specific — requires approval |
DCCs and the SSMUH / Infill Housing Push
BC's 2023 Small-Scale Multi-Unit Housing (SSMUH) legislation requires all municipalities to permit multiplexes (3–6 units) on single-family lots as of right. This has created a significant DCC question: how do municipalities charge DCCs on infill multiplexes that are adding 2–5 units to existing single-family lots?
Under the existing floor area exemption, the DCC only applies to the new floor area added. A homeowner demolishing a single 2,000 sq ft house and replacing it with a 6-unit multiplex would pay DCCs on the net new floor area. If the new building is 8,000 sq ft, DCCs apply to the incremental 6,000 sq ft (or incremental units), not the full project.
Many BC municipalities are also considering or implementing DCC reductions for SSMUH projects to encourage infill, recognizing that infill development makes more efficient use of existing infrastructure compared to greenfield development. Realtors who list SSMUH-eligible properties or counsel investor clients on laneway homes should verify the local DCC treatment with the municipality before finalizing pro forma projections.
What Realtors Working with Developer Clients Need to Know
If your client is a developer or land buyer evaluating a site for new construction, DCCs are a line-item in the pro forma that must be calculated before offer price is finalized. As a realtor representing a developer purchaser, you should:
DCCs on Land Subdivision
When land is subdivided into new lots, DCCs are typically levied at the subdivision approval stage — not the building permit stage. The rates for subdivision are usually expressed per hectare of net developable area or per lot created.
Key points for realtors handling land sales:
- →If a client is purchasing a property with subdivision potential, the DCC liability on the future subdivision must be factored into the value analysis — it is a future cost that reduces land value.
- →On bare land subdivision (bare land strata or traditional subdivision), DCCs are the seller's obligation if the subdivision was triggered by the seller — verify which party is responsible in the purchase contract if subdivision is a subject condition.
- →The DCC is triggered at the time of subdivision approval or building permit issuance, whichever applies first. Timing matters for budgeting.
- →Regional district DCCs may apply on top of municipal DCCs for properties outside municipal boundaries but within a regional district growth area.
Frequently Asked Questions
What are Development Cost Charges (DCCs) in BC?
Development Cost Charges (DCCs) are statutory levies imposed by municipalities and regional districts on new construction and land subdivision under the Local Government Act. They are intended to recover the cost of infrastructure — roads, water, sewer, drainage, and parks — required to service new development. DCCs are set by bylaw, calculated per dwelling unit or per square metre of floor area, and payable at the building permit stage.
Who pays Development Cost Charges in BC?
The legal obligation to pay DCCs falls on the developer or builder who applies for the building permit. However, DCCs are almost always passed through to the end buyer in the presale price. For resale properties, DCCs were already paid when the building permit was issued and are not charged again. DCCs are a new construction cost, not a transfer tax.
What is the difference between DCCs and CACs (Community Amenity Contributions)?
DCCs are statutory charges set by municipal bylaw and calculated by formula — they are mandatory and non-negotiable. CACs are negotiated contributions, typically cash or in-kind amenities, that municipalities request from developers in exchange for rezonings that increase density. A project may be subject to both DCCs and CACs, as well as school site acquisition charges from the school district.
Are there DCC exemptions in BC?
Yes. BC law provides several DCC exemptions: properties with an existing lawful use (no DCCs on the existing floor area), small lot subdivisions in some municipalities, non-profit housing developments may receive a partial or full waiver, and infill accessory dwelling units (secondary suites, laneway homes) may be exempt or charged at a reduced rate depending on the municipality's DCC bylaw. Municipalities also have discretion to grant waivers for affordable housing projects.
How do DCCs affect presale condo pricing in BC?
DCCs are a component of the developer's project cost and are factored into presale unit pricing. In high-DCC municipalities like Vancouver, the combined DCC, CAC, and school site charge on a mid-rise residential building can exceed $50,000–$80,000 per unit. These costs are embedded in the list price — buyers do not pay DCCs separately. However, understanding DCCs helps explain why new construction pricing differs significantly between municipalities with high vs low DCC rates.
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