Province Unlocks More Flexibility For Development Charges

The BC government is taking 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.

It’s hoped the changes will improve the viability of housing projects as home builders can invest in new housing projects sooner.

The changes will involve amendments to regulations that would expand the use of on-demand surety bonds provincewide.

The 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.

Others rely on a different financial tool, known as irrevocable letters of credit from a bank.

The Province says homebuilders prefer on-demand surety bonds because they don’t restrict a developer’s access to credit, freeing them to move projects from start to finish and build more housing.

The changes are expected to come into effect on January 1st, providing local governments time for system upgrades, staff training and planning.

To learn more, visit Government of British Columbia.