Unlocking Development: Two Wins for Common-Sense Policy in Real Estate
In recent years, the cost to build in British Columbia has been climbing steadily, not just due to materials and labour, but because of the growing stack of taxes, fees, and regulatory charges applied at every level of government. From development cost charges and utility levies to community amenity contributions and permitting delays, this layering effect has made it increasingly difficult, and often uneconomic, for builders to deliver the housing, industrial space, and infrastructure our communities need.
Against this backdrop, two recent developments offer a welcome course correction toward more balanced, practical policymaking.
Reducing Barriers to Housing Starts
Recently, the provincial government announced it would change regulations to lower early-stage financing costs for new housing projects. This move is a response to an important concern long raised by the Urban Development Institute (UDI), which has been a consistent advocate for streamlining financial requirements that can delay or derail new housing.
The change will allow developers to defer expensive letters of credit and security deposits tied to development approvals, which previously created significant upfront cost burdens. This is a small but meaningful change that will help improve the economics of housing projects across the province, especially during early stages when financial risk is highest. The changes will apply to qualified developers in communities with a development cost charge, amenity cost charge or a school-site acquisition charge. Homebuilders will have four years, rather than two, to pay the charges. They will be able to pay 25% at permit approval and the remaining 75% at occupancy or within four years, whichever comes first. With interest rates still elevated and construction costs trending upward, this adjustment will provide some relief and make more projects viable in this challenging environment.
Protecting Job-Creating Industrial Lands
A second positive shift comes from a court decision involving Community Amenity Contributions (CACs) in the Township of Langley. The ruling sided with a developer that challenged the Township’s attempt to impose millions of dollars in retrospective fees as a condition of development. The Greater Vancouver Board of Trade had previously raised concerns about the economic implications of these CACs on employment lands.
In a letter to Langley Council last July, the Board stressed that employment lands are essential to regional prosperity. The trade war with the United States has re-emphasized the need to build and buy local. In order to do that we need industrial and employment lands. These lands already support over 450,000 jobs and contribute more than $50 billion in GDP despite occupying just 4% of the region’s land base. Excessive and unpredictable fees undermine the economic viability of projects that would bring high-paying, high-skill jobs closer to where people live. They are also essentially a tax on jobs.
This concern is not theoretical. As highlighted in our Building B.C.: Local Food and Industrial Production report, Metro Vancouver has already lost out on billions in potential investment to jurisdictions like Calgary, where industrial land is more abundant, fees are more predictable, and approval processes are faster. In a four year period, it is estimated that B.C. lost an estimated $494 million in capital investment and 6,300 long-term jobs to Alberta.
To build the economy and future we want, we will need a more predictable and transparent framework for development charges, particularly when they affect job-creating sectors.
Toward a More Productive Region
Together, these two developments point toward a more balanced approach to land use planning and development in the region. Removing financing roadblocks to housing and protecting industrial investment from unpredictable charges are both essential to building a more productive, inclusive, and economically vibrant Metro Vancouver.
The Greater Vancouver Board of Trade will continue to advocate for policy solutions that support sustainable growth, unlock housing supply, and protect the jobs and industries that power our region’s economy.