Background
The City of Courtenay is updating its Development Cost Charges (DCC) Bylaw. The last significant update was in 2016, with a minor revisions in 2022, 2023 and 2024.
The program includes proposed projects, costs and rates. These updates help ensure DCCs continue to support the cost of growth-related infrastructure in our community.
Where we are now
First, Second and Third readings by Council, Provincial Approval - COMPLETE
Presentation by Nancy Henderson, Senior Local Government Advisor, Urban Systems Ltd.
The presentation outlined proposed rates, municipal assist factor, consultation completed to date, and reviewed next steps in the adoption process, including three readings of the bylaw, provincial approval, and preparation of internal implementation materials.
DCC Bylaws – Adoption timing update
Following approval by the Inspector of Municipalities on February 24, the DCC is moving toward final adoption.
Staff will be recommending that Council defer final adoption to April 29, 2026.
This additional time will allow the City to:
- Finalize internal implementation procedures
- Confirm charge calculation and validation processes
- Review submitted applications for completeness
- Work with applicants to address outstanding items where possible
In-stream application protection
Applications submitted prior to bylaw adoption may qualify for in-stream protection under the existing charge structure, provided they meet completeness requirements. During this transition period, completeness determinations will:
- Apply consistent professional standards
- Provide clear communication on outstanding items
- Offer guidance to address minor deficiencies where appropriate
- Ensure transparency in all determinations
Learn more:
Development cost charges (DCCs) are one-time fees that developers pay to help cover the cost of new infrastructure needed for growth.
DCCs are set by the Province of B.C. under the Local Government Act. They can only be used for projects related to growth. They can't be used to repair existing infrastructure or for operating and maintenance costs.
DCCs can help pay for things like:
- roads and transportation
- water and sewer systems
- stormwater drainage
- buying and improving parkland
- fire halls and equipment*
- police buildings*
- solid waste and recycling facilities*
*These services are not included in the current DCC Bylaw update.
The proposed rates apply city-wide and reflect a 1 per cent Municipal Assist Factor (MAF). DCCs are charged based on development type
| Land use | Unit | Proposed rate |
|---|---|---|
| Low density residential (e.g., single family) | per lot or dwelling unit | $21,832 |
| Medium density residential (e.g., triplex, fourplex, townhouse) | per dwelling unit | $12,278 |
| High density residential (e.g., apartment, detached accessory dwelling unit) | per m2 gross floor area | $141.09 |
| Commercial | per m2 gross floor area | $91.32 |
| Industrial | per m2 gross floor area | $17.10 |
| Institutional | per m2 gross floor area | $73.31 |
DCCs are collected at:
- Subdivision – when creating new single-family lots (Low Density Residential).
- Building permit - when applying to build Medium or High Density Residential, Commercial, Industrial or Institutional developments.
Payments By Installments
The regulation that enables developers to pay development cost charges (DCCs), and school site acquisition charges by instalment has been amended effective January 1, 2026.
What has changed?
The Province has made changes that are designed to encourage housing development by providing a way for developers to pay DCCs in two installments if they meet certain requirements while also protecting local governments from risk of non-payment. Developers may also choose to pay all development charges at once.
New Rules for Paying DCCs in Installments
As of January 1, 2026, developers can choose to pay DCCs to the City of Courtenay in two installments. For developers this means:
- 25% of the total is payable on receipt of a Subdivision Approval or Building Permit issuance (whichever comes first).
- 75% of the total can be deferred until whichever of the following comes first:
- Four years following receipt of the Subdivision Approval or Building Permit issuance; or
- 15 business days after all occupancy permits have been issued and the local government gives written notice (an invoice) to the developer that the conditions, if any, in those permits have been satisfied and payment of the balance of the charge is due.
If a developer chooses to defer 75% of the total charges, they must do the following to provide security to the City of Courtenay:
- Provide an Irrevocable Letter of Credit from a Financial Institution or Trust Company authorized under the Financial Institutions Act; or
- Provide an On-demand Surety Bond from an insurer authorized under the Financial Institutions Act, and with prescribed credit ratings.
Please see the pdf of the Ministerial Order below for more detail on the requirements.
Applications submitted prior to bylaw adoption may qualify for in-stream protection under the existing charge structure, provided they meet completeness requirements. The rules for in-stream protection are identified in section 568 of the Local Government Act, which is summarized below.
Criteria for when In-stream Protection Applies
The Bylaw adoption date is the date when Council gives the new DCC Bylaw final reading. All subdivision or building permit applications received after the Bylaw adoption date will be subject to the new rates. Complete development applications, as determined by the City, received prior to Bylaw adoption, will be entitled to pay DCCs at previous rates for up to 1-year from Bylaw adoption date, provided the application meets the following:
| For precursor applications (rezoning and development permit): | For building permits not associated with rezoning or development permit (BP): | For subdivision applications: |
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Expiry of In-stream Protection
Newly adopted DCC rates will apply in all circumstances for BP and Subdivision applications 1-year after the DCC Bylaw adoption date. BP or subdivision application extensions beyond the 1-year anniversary of the DCC Bylaw are subject to the new DCC rates.
Some developments may be exempt from DCCs:
- Buildings for public worship
- Developments that do not create new capital costs
- Developments where DCCs have already been paid
Council may also vary DCCs for:
- Building permits valued at $50,000 or less*
- Residential units 29 m² or smaller
- Developments with fewer than four units (e.g. duplexes, triplexes)
*Subject to Council approval
Under the Local Government Act, municipalities may adopt a bylaw to waive or reduce DCCs in certain cases — for example, to support affordable rental housing or reduce environmental impacts.
Courtenay’s current bylaw for affordable housing waivers is:
- Development Cost Charge Waiver (Affordable Housing) Bylaw No. 3118
This bylaw is set to expire on June 1, 2027.
