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/  

Backgrounder : What people are saying about proposed changes to regulation