Encyclopedia
Development Cost Charge (DCC)
A charge local governments collect on new development to help pay for infrastructure like sewer, water and roads.
For example: A buyer planning to add space to an industrial lot asks the city what DCCs would apply. (Illustration only, not a real deal.)
Official source: Development cost charges (Government of BC)
Example only, not a real client. Say you plan to build a new industrial building. The city charges development cost charges to help pay for roads, sewers and parks the growth will need. You include them in your project budget from the start.
What I’d tell a friend
Ask the city for current development cost charges early. They can be a large part of a project budget.
Why it matters to you
It's a charge on new development that cuts into what a project, or the land, is worth. Rates change, so check the current bylaw before you price a site.
How to use it in your deal
Developers and owners should look up current DCC bylaws for every level of government before pricing land, since charges can be large and change over time; some cities phase in increases with notice periods and grandfather complete applications. Ask about credits for existing buildings being replaced, waivers for certain uses, and payment by instalment.
Buyers of development sites should include DCCs in pro formas and land valuations. Tenants building large additions may face DCCs if they trigger permits. Lenders want them budgeted. Since 2023 and 2024, provincial changes have added new tools like amenity cost charges and expanded DCC categories, so check the latest bylaws.
Mistakes I see
Using old rates. Forgetting regional and TransLink charges. Missing grandfathering deadlines. Not claiming credits.
In BC and Vancouver
The Local Government Act and Vancouver Charter allow DCCs; the province publishes a best practices guide.
Official sources: Development cost charges (Government of BC) · Local Government Act (BC Laws)
What it is
Development cost charges are fees local governments in BC collect from new development to help pay for infrastructure.
Rates vary by municipality, region and type of development.
Planning
Get the current rates from the municipality and any regional bodies.
Check when they are payable and whether any reductions or exemptions apply, and watch for rate changes before your permit is issued.
Questions to ask before you sign
- What DCCs apply here?
- Are increases coming?
- Do I get credits?
- When must I pay?
- Do regional charges apply?
Keep reading
Related terms: Amenity Cost Charge (ACC), Development permit
- How commercial property is valued in BC
- Vancouver planning changes: what they mean for commercial owners and tenants
- Zoning, permits and licences for commercial space in Vancouver
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.