DCCs are one-time fees developers pay toward the cost of new infrastructure needed to support community growth. They are set by the Province of B.C. under the Local Government Act and can only be used for growth-related projects. They can't be used to repair existing infrastructure or for operating and maintenance costs.

DCCs can help pay for:

• 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 DCC rates apply city-wide and reflect a 1 per cent Municipal Assist Factor (MAF). DCCs are charged based on development type

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

As of January 1, 2026, developers can choose to pay DCCs in two instalments:

1. 25 per cent is due on receipt of subdivision approval or building permit issuance, whichever comes first
2. 75 per cent can be deferred until the earlier of: four years after subdivision approval or building permit issuance, or 15 business days after all occupancy permits are issued and the City has confirmed in writing that any permit conditions have been satisfied

If deferring 75 per cent, developers must provide financial security in one of the following forms:

• an irrevocable letter of credit from a financial institution or trust company authorized under the Financial Institutions Act
• an on-demand surety bond from an insurer authorized under the Financial Institutions Act with prescribed credit ratings

Developers may also choose to pay the full amount at once.

See the Ministerial Order for more details on the requirements.

If your application was submitted before the bylaw adoption date, you may qualify for in-stream protection — meaning you can pay DCCs at the previous rates for up to one year, and are exempt from the new ACC rates until the ACC bylaw is amended.

To qualify, an in-stream precursor application must be a complete application to the satisfaction of the City, with all applicable fees paid, and must be actively in progress — not rejected, withdrawn or issued.

Additional criteria apply depending on your application type:

• Rezoning, development permit or building permit applications
  Previous DCC rates will apply to developments with in-stream precursor applications that have a building permit issued within 12 months of bylaw adoption.
• Subdivision applications
  The previous DCC rates apply if:

• the Preliminary Layout Review does not lapse during the one-year protection period
• final subdivision approval is granted before the one-year anniversary of the bylaw adoption date

When in-stream protection expires

Newly adopted ACC and DCC rates will apply in all circumstances for building permit and subdivision applications:

• one year after the DCC bylaw adoption date
• following the scheduled inflationary update to the ACC bylaw in early 2027

Any building permit or subdivision application extensions beyond those dates are subject to the new ACC and DCC rates.

Developments on which DCCs have already been charged may be eligible for Existing Use Credits, in accordance with the City's DCC Policy. Credits may be provided if the development maintains the same land use, or if the change in land use is from one residential type to another.

All Existing Use Credits for expansions or redevelopments are based on the rates in place at the time of the original building permit issuance or subdivision. Existing Use Credits are not granted for the addition of suites, including secondary suites and accessory dwelling units.

Applicants are responsible for providing all necessary information — such as floor plans and gross floor area — for staff to determine whether any credits apply.

Certain developments are exempt from DCCs, including:

• small self-contained units under 29 m²
• building permits issued for work not exceeding $75,000
• places of worship (though other uses incorporated into the same building, such as daycares, may still be subject to DCCs)
• developments where DCCs have already been paid and new construction does not increase infrastructure demand

Under the Local Government Act, the City may also waive or reduce DCCs for eligible developments. Courtenay currently offers waivers for eligible affordable housing projects under Development Cost Charge Waiver (Affordable Housing) Bylaw No. 3118, which expires June 1, 2027, and is scheduled for review in 2026. When the City provides a waiver or reduction, the waived fees are financed through non-DCC revenue sources such as general taxation.