DELTA – More affordable homes will be on the way quicker as the Province takes steps to speed up construction timelines and reduce up-front costs for homebuilders.  

“We are committed to finding innovative and cost-effective solutions to build housing, so everyone has a fair chance to live in communities where they work and belong,” said Ravi Kahlon, Minister of Housing and Municipal Affairs. “These changes are about supporting housing development and easing the financial burden on builders and developers so they can get shovels in the ground faster to help unlock more homes for people in B.C.”  

The Province is creating more flexible and extended payment timelines for homebuilders, so more homes can continue to be built at a time when construction costs and interest rates are high. This will improve the viability of housing projects as homebuilders can invest in new housing projects sooner. Lower carrying costs will also help unlock more housing developments that need additional capital. 

Government will amend the Development Cost Charge and Amenity Cost Charge (Instalments) Regulation to expand the use of on-demand surety bonds provincewide. On-demand surety bonds are financial guarantees that homebuilders provide to give assurances that they will fulfil their construction contract. Currently, homebuilders are able to use on-demand surety bonds in 40 municipalities across Canada, including Burnaby, Surrey, Vancouver and Mission.  

Other municipalities rely on a different financial tool, known as irrevocable letters of credit from a bank. Homebuilders prefer on-demand surety bonds because they do not restrict a developer’s access to credit, freeing homebuilders to move projects from start to finish and build more housing.  

The changes will apply to qualified developers in communities with a development cost charge, amenity cost charge or a school-site acquisition charge. As well, 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.  

These new actions to support housing goals are a result of collaboration between the Province, B.C.’s development and homebuilding industry associations and local governments. 

The changes are expected to come into effect on Jan. 1, 2026. This will provide local governments time for system upgrades, staff training and planning. 

These regulatory improvements are part of the Province’s commitment to increase the supply of homes people can afford in a community they love. 

Quick Facts: 

• The Development Cost Charge and Amenity Cost Charge (Instalments) Regulation, unchanged since 1984, requires developers to pay a minimum of one-third of the total charge when the subdivision or building-permit is approved and the full amount within two years.  
• Qualified developers have been approved by a surety company to use on-demand surety bonds and that have greater than $50,000 in development cost charges or amenity cost charges payable to a local government.   
• An on-demand surety bond can be converted to cash within 15 days without court involvement. 

Learn More: 

Information about the development cost charges can be found here:
https://www2.gov.bc.ca/gov/content/governments/local-governments/finance/local-government-development-financing/development-cost-charges 

Information about the amenity cost charges can be found here:
https://www2.gov.bc.ca/gov/content/governments/local-governments/finance/local-government-development-financing/amenity-cost-charges 

To learn about the steps the Province is taking to tackle the housing crisis and deliver affordable homes for British Columbians, visit:
https://strongerbc.gov.bc.ca/housing/  

A backgrounder follows. 

George V. Harvie, mayor of Delta – 

“On behalf of the City of Delta, I want to thank the Government of B.C. for introducing this timely and much-needed change. Delta council and I have been advocating to allow local governments more flexibility to support housing development, while continuing to deliver the infrastructure our growing communities depend on. This smart, balanced policy shift will support both growth and sustainability.” 

Brenda Locke, mayor of Surrey – 

“Reducing upfront costs for homebuilders is a progressive approach to encourage more housing creation. When developers have fewer financial barriers, they can get projects off the ground faster and accelerate construction timelines, which means homes become more affordable for families. Everyone deserves a safe, welcoming place to call home and this step will help build stronger, more vibrant communities where people can truly thrive.” 

Mike Hurley, mayor of Burnaby – 

“It’s encouraging to see the Province providing more tools and flexibility to accelerate the creation of new housing. These changes demonstrate the collaborative approach we’re taking to address the housing crisis, and we look forward to more solutions in the near future.”

Tom Dyas, mayor of Kelowna – 

“Incentivizing development supports our economy and helps build homes faster in Kelowna. Modernizing outdated regulations is a positive step. Locally, we have taken bold action to create and incentivize new housing, and we look forward to working with the Province and industry to advance key projects.” 

Nathan Pachal, mayor, City of Langley –  

“In a housing crisis, we must look at every and any innovative way to ensure cities can deliver on much-needed infrastructure, while providing more flexible financial options for home builders. Langley City is piloting on-demand surety bonds today and it is exciting to see this being rolled out provincewide.” 

Anne McMullin, president and CEO, Urban Development Institute –

“The requirement to pay development fees up front has become increasingly onerous for builders, especially as fees rise and access to capital tightens. By shifting payment to occupancy, the provincial government is enabling more projects to move forward. This policy lowers early-stage financing costs, frees up capital for construction and helps builders reinvest in new housing.” 

Neil Moody, CEO, Canadian Home Builders' Association of BC – 

“Our association has long advocated for flexibility in managing upfront development costs, which present significant financial barriers to homebuilders. The ability to defer a portion of development charges and use on-demand surety bonds is a practical measure to address the current economic realities of building housing across British Columbia. This announcement reflects significant collaboration that will help unlock capital, ease cost pressures and support the delivery of more homes.”