BC Extends Metro Vancouver DCC Rate Freeze to Strengthen Housing Pipeline

On July 15, the Government of British Columbia finalized regulatory amendments extending the in‑stream protection period for Metro Vancouver Regional District’s Development Cost Charges (DCCs). The goal is to protect homebuilders’ projects from increases in Metro Vancouver Regional District development cost charges, freeing up hundreds of millions of dollars in capital to invest in additional new homes.

The BC Ministry of Housing announced this regulatory change, which freezes increases in Metro Vancouver Regional District development cost charges (DCCs) for 24 months instead of the previous 12.

Under the revised regulation, any eligible development permit issued between March 23, 2025, and March 22, 2026, will now benefit from a 24-month in-stream protection period, allowing projects to pay 2024 Development Cost Charge (DCC) rates despite scheduled increases. This doubles the previous protection window, which had been limited to 12 months. The rate escalation schedule remains in place, with incremental DCC increases taking effect in 2025, 2026, and 2027, leading to full implementation of the updated fee structure by 2028.

Preserving Rate Certainty

Originally enacted in 2024, Metro Vancouver’s new DCC structure phased in significant increases, expected to increase rates for water, wastewater, and regional park infrastructure by 2027. This extension now guarantees an additional year of rate protection, allowing developers to proceed under known cost assumptions even as formal rate hikes begin in 2025, 2026, and 2027.

Coupling With Federal Infrastructure Funding

The move aligns with Metro Vancouver’s eligibility for $250 million from Canada’s Housing Infrastructure Fund (CHIF), which requires cost certainty to unlock infrastructure investments. In effect, the province’s decision mitigates one of the compliance conditions tied to federal funding access.

Relieving Capital Burden Without Altering Fees

While the freeze defers escalations, it does not change the actual DCC amounts owed. The total revenue flow remains intact, ensuring project feasibility without subsidizing the costs, and allows municipalities to maintain infrastructure funding plans while offering timing flexibility.

Regional Infrastructure 

Metro Vancouver’s DCC system funds key regional infrastructure, including water supply, wastewater treatment, and parkland acquisition, to uphold the “growth pays for growth” principle. The current DCC revision phase, running from 2025 to 2027, is tied to Metro Vancouver’s capital plan and reflects updated population forecasts and regional policy priorities.