Abbotsford’s Increased DCCs and New ACC

By Mike Harrison

Triggered by new provincial housing legislation from late last year, the City of Abbotsford has undertaken a review of its Development Cost Charges (DCC) and Community Amenity Contribution (CAC) programs and, on September 5th, presented new draft rates. The presentation introduces DCC rates which will increase by 48-80%, introduces a new Amenity Cost Charge and modifies the existing CAC program.

Development Cost Charges

The City of Abbotsford notes in their presentation that the DCCs have been increased to account for cost escalation and in response to the new provincial housing legislation regarding Small Scale Multi-Unit Housing (SSMUH) and Bill 46 which add fire protection facilities, police facilities, solid waste and recycling facilities and highway facilities to the categories of projects which can be paid for by DCCs. The proposed rates are shown below.

While the new rates represent a 52-53% increase, they remain below those in Surrey or the Township of Langley. Incidentally, the new Apartment DCC will also still be below Mission and Chilliwack.

New multiplex units, part of the new SSMUH legislation, will be subject to the Townhouse DCC rates. 

New Amenity Cost Charges (ACCs)

Bill 46 introduced new ways for municipalities to finance the creation of new cultural and recreation amenities to support growth. Municipalities can now charge a new Amenity Cost Charge on new development. As municipalities are not allowed to charge both their existing CACs and the new ACC, much of what was covered by Abbotsford’s existing CACs has been rolled up into the new ACC. The proposed rates for the new ACCs are shown below.

Existing CACs & Bonus Density

Until now, CACs covered affordable housing, recreation amenities, cultural amenities and emergency services amenities. The City presentation explains that the emergency services allocation has been rolled into the DCCs and with recreation and cultural amenities now covered by the ACC, the only category left is affordable housing. As a result, the CAC program has been stripped down, and the rates have been decreased substantially as they now only apply to affordable housing. The new, reduced CAC rates are shown below.

Protection for Instream Development Applications

The city presentation explains that the new DCC and ACC rates will be effective at bylaw adoption; however, the local government act mandates a 12-month grace period for precursor applications as long as those applications are issued building permits within the 12-month grace period. 

Next Steps

The City of Abbotsford is looking for feedback on the proposed rates and has a website which provides more detailed information about the new fees plus an opportunity to leave comments. CLICK HERE for that website.

Once feedback is collected, the City notes they expect to go to council for 1st, 2nd and 3rd Readings in October and submit to the ministry for approval immediately thereafter.