Development cost charge exemptions

Certain property development types are exempted by legislation from development cost charges. Municipalities and regional districts may choose to exempt certain types of development from charges through the adoption of a bylaw.

Development cost charge exemptions

All development within the geographic area affected by a development cost charge bylaw is liable for the charge unless exempted by statute. Such exemptions include:

• Places of worship
• Development that does not impose a new capital cost burden
• Development in which a development cost charge has previously been paid

In addition, subject to a development cost charge bylaw or regulation, a development cost charge is not payable in relation to a development that is for one of the following, a:

• Development that contains fewer that four self-contained residential dwelling units
• Development of self-contained residential dwelling units in a building if each unit is no larger than 29 square metres
• Building permit for work which does not exceed $50,000

Local governments may, in a development cost charge bylaw, provide that a development cost charge is payable for developments containing fewer that four self-contained residential units, or establish an area greater than 29 square metres, or an amount greater than $50,000 in which development cost charges will be applied.

• Local Government Act, section 561 - Circumstances in which development cost charges are not payable

DCC waivers and reductions

Local governments can also choose to waive or reduce charges for certain types of developments, including:

• Not-for-profit rental housing
• Supportive living housing
• For-profit affordable rental housing
• Asubdivision of small lots designed to result in low green house gas emissions
• A development designed to result in low environmental impact

A bylaw must be adopted that further defines the categories of eligible development and specifies the degree to which the charges will be waived or exempted.

• Local Government Act, section 563 - Development for which charges may be waived or reduced