B.C. announced on Monday that it has introduced legislation to give TransLink the authority to set and levy a development cost charge (DCC) on new construction in the region, in response to a request from the Mayors’ Council on Regional Transportation.
The DCC authority was a priority action for the Mayors’ Council to help ensure the necessary funds are available for TransLink to deliver on its 10-year vision for transportation in Metro Vancouver.
Development cost charges are one-time fees that apply to new developments to help fund growth-related infrastructure costs.
TransLink conducted significant stakeholder consultation as part of its planning work. With this funding mechanism in hand, TransLink will be better positioned to implement the vision, which includes improvements to roads and cycling, as well as pedestrian and public-transit infrastructure, said the Province.
A number of accountability and transparency provisions have been built into the structure of the proposed legislation, including a requirement for TransLink to list the revenue it anticipates it will collect from DCCs for each year of the plan in its Investment Plan, and to publicly report on its DCCs as part of its annual reporting process. These measures will ensure that rates are fair and equitable, and that rates are set and maintained openly and transparently.
The framework of this legislation is designed to ensure housing affordability in the region is not affected by the new charges, e.g., the legislation permits TransLink to provide waivers and reductions to DCC amounts for developments that provide affordable rental housing in the region.
The Province said it is committed to funding 40% of the capital costs of the Mayors’ Council’s 10-Year Vision, and to helping the region raise its share of the funding through multiple new regional measures. Providing TransLink with this authority is part of delivering on that commitment.