METRO Vancouver has rolled back its 2026 development cost charge (DCC) rates to 2025 levels and lowered its 2027 rate increases.
“Metro Vancouver heard the feedback that we needed to take action to help support new housing construction by lowering development cost charges,” said Mike Hurley, Chair of the Metro Vancouver Boards, on Friday. “At the same time, we must continue investing in the water and sewer infrastructure that growing communities rely on. These changes strike a balance between supporting new housing and ensuring growth contributes fairly to the infrastructure needed to serve it.”
In April, the Metro Vancouver Regional District, Greater Vancouver Water District, and Greater Vancouver Sewerage and Drainage District boards introduced bylaws to lower DCC rate increases. Following public engagement in May and provincial approval in July, the boards gave final adoption to the amendment bylaws on July 24, 2026. The updated 2026 rates took effect immediately following final adoption.
Metro Vancouver will also slow the transition to a one-per-cent assist factor, so that it will reach one per cent by 2029 instead of 2027. The assist factor is the percentage of the growth costs that are funded from utility or user fees rather than DCCs.
Rolling back the 2026 rates and reducing the 2027 increase is expected to lower overall DCC revenue by $389 million over the next six years — $270.5 million for Greater Vancouver Water District, $75.5 million for Greater Vancouver Sewerage and Drainage District, and $43 million for regional parkland acquisition. The Boards opted to fund the anticipated gap for water and sewage growth-related projects through additional borrowing, while the gap for parkland acquisition will be added back to the annual household tax requisition.
Metro Vancouver collects DCCs from new development to help fund the critical regional water and wastewater infrastructure needed to accommodate growth. A small portion of Metro Vancouver’s DCCs also support regional park land acquisition. DCCs can only be used for eligible growth-related infrastructure, helping ensure that development contributes to the costs of the infrastructure it requires. Affordable rental housing and agricultural developments can receive development cost charge waivers if they meet certain criteria. Infrastructure not related to growth is funded by existing ratepayers and taxpayers. Metro Vancouver adopted its 2025–2027 DCC rates in March 2024.
