that facilitates the provision of regional utilities like
water and sewer delivery. The project will also pay
municipal DCCs or DCLs for new or upgraded systems
within their local community. In the Vancouver condo
example, the Regional DCCs and Municipal DCCs
charged on the development of an average unit total
$31,910. This amount will increase by a further $4,261
with the anticipated addition of Metro Vancouver’s new
Water DCC in 2023.
DCC rebates can be available, but developers are
not always able to access these rebates after the
infrastructure has been financed. This creates a
level of risk associated with paying for, or directly
building, growth-related infrastructure as part of the
development process. The issue is compounded in an
inflationary environment, when financing requirements
are increased and more difficult to achieve. Increases
can occur to multiple types of government charges
in a short time period, emphasizing the need for
coordination across levels of government. This can
result in developers paying up to three separate
charges for various parts of new service. This type of
layering of taxes and fees contributes to the overall
burden of taxes on a new housing project.
Community Amenity Contributions (CACs)
Community Amenity Contributions (CACs) can be a
very unpredictable cost in the delivery of new housing.
A CAC is another fee levied by some municipalities,
outside of the legislative framework provided by the
Local Government Act and Community Charter (or
Vancouver Charter). CACs are commonly used to fund
amenities such as childcare, community facilities,
park upgrades, and affordable housing, but funds
are ultimately allocated by the municipality.5 In the
Vancouver rental example, the CAC could account for
$161.30 of the average monthly rent per unit, or 5.97%,
and in the Vancouver condo example the CAC could
contribute $89,992 to the cost of an average unit. The
CAC rates in Vancouver are greater than the CACs
budgeted in the other examples in this analysis.
If the CAC amounts are negotiated with the
municipality, the process can take several years to
reach a conclusion. This can create a risk so high
that builders may decide not to proceed with a new
housing development. While the scenarios in this
analysis have fixed CAC rates, some municipalities,
including the City of Vancouver, also use negotiated
CACs which are much harder to calculate into the
budgeting process. Although fixed CAC rates provide
more predictability, CACs in general are a burden on
any new housing development, adding more costs to
projects. If these costs exceed project revenue or the
amount a project can bear, after other costs have been
fixed (ie. land cost), the project may be delayed, or not
built at all.
In the Vancouver rental example, the CAC could be
charged at $25.61 per sq. ft. and in the Vancouver
condo example, the CAC could be more than four
times as high, totalling $112.49 per sq. ft. Supplying
new housing, especially rental housing, is critical to
meet the demands of a growing population, but high
CAC expectations can create a burden big enough
to render a project unviable. If a project does not
proceed it will reduce the new housing supply as well
as the funding for amenities.
Taxing Growth
CAC per unit
Total Fees per unit
Per unit
$161.30
$882.70
Total Charge per sq. ft.
$25.61
CAC - Vancouver Rental Example
CAC
Total Fees per unit saleable
Per unit
89,992.00
$327,565.53
Total Charge per sq. ft.
$112.49
$409.46
CAC - Vancouver Condo Example
Breaking Down the Taxes & Fees