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Development Cost Charge Increases in City of Victoria
The Issue
Development Cost Charges (DCCs) continue to be a major addition to the cost of home construction. This particular policy for VREB arises out of a decision at City of Victoria Council in 2006 to consider raising their DCCs from $2.80 per sq. metre to $23.18 per sq. metre in one year for commercial buildings.
The full policy paper produced by the City is found here.
VREB Position
2006 VREB President, Scott Kendrew, wrote to the City on August 15, 2006 to advise against making the fee change in one year, stating, "These increased fees immediately force a disproportionate amount on new infrastructure costs onto owners of development properties, driving up the cost of both commercial and residential real estate for end users."
More recently, 2010 President Randi Masters joined others from the Urban Development Institute, the Canadian Home Builders Association and the Rental Owners and Managers Society of British Columbia in arguing against a new proposal by City of Victoria staff to again raise development permit fees.
Update
The City of Victoria made the decision to increase DCCs at its Council meeting of May 24, 2007 despite advice not to do so from the VREB, the Canadian Home Builders Association, The Rental Owners and Managers Society of British Columbia, The Urban Development Institute and The Greater Victoria Chamber of Commerce
In 2010, Victoria City Hall staff responded more favourably to the joint presentation from the housing industry and have agreed to have a second look at their proposed increases.
Ratification
Position ratified by the VREB Directors, January 2011.
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