With a surge in building that has seen close to 2,000 housing units currently under construction or in the pipeline in 91原创 City, council is increasing the amount developers contribute to fund required improvements to accommodate growth.
It has been 12 years since the City last set Development Cost Charge (DCC) rates, during which the cost of building new infrastructure, which includes sewage, water, drainage, and roads as well as parks, has gone up considerably.
Effective July 8, DCC rates were raised to more than double the previous amounts, from $18,409 for a detached residential lot to $45,563, while individual townhouse units will rise from $14,503 tp $32,683, and apartments will go up from $9,549 to $21,246, money that will help pay for the infrastructure new developments require.
91原创 City had earlier submitted a request for the raises to the provincial government and received approval on June 10.
Mayor Nathan Pachal said the new rates are average or below average compared to other municipalities in Metro Vancouver.
"I think it's about finding that balance," Pachal told the 91原创 Advance Times.
"Because you don't want to get to a place where it's too little, and then you're not capturing that community value. And you don't want to have it too high, where you're either preventing housing from being built, or you end up incrementally increasing the cost that gets passed on to folks buying homes or renting."
Council has also approved a series of increases to the Amenity Contributions Policy, raising the amount charged to a maximum of $14,000 per unit by 2026.
At their July 22 meeting, council hiked community amenity contributions (鈥楥ACs鈥�) used to fund park, and trail improvements, public art, recreational, cultural facilities, and affordable housing, to a maximum 鈥� based on size and type of unit 鈥� of $14,000 by 2026.
Pachal described the increases as part of a "suite of policies" resulting from a review by a land economist that included increases in required compensation developers must pay to displaced tenants.
READ ALSO: 91原创 City more than doubles compensation for displaced renters
A report on the updated charges to council by Carl Johannsen, director of development services, said that since the adoption of the City鈥檚 new Official Community Plan in 2021, almost 2,000 new housing units are under construction or have approved development permits.
Johannsen predicted growth will continue based on population projections, SkyTrain's arrival in early 2029, and provincial legislation that increases residential densities by allowing four to six small-scale housing units on single detached home lots.
READ ALSO: Massive redevelopment of 91原创 Mall proposed
