Modernizing Development Financing

Year
2019
Number
SR2
Sponsor(s)
UBCM Executive

Whereas Development Cost Charges, designed to help pay for the cost of off-site infrastructure required to deliver community services that are needed to accommodate growth, are currently restricted by the Local Government Act to areas of sewage, water, drainage, roads and parks, And whereas the current Development Cost Charge structure does not support the flexibility local governments require to make effective off-site infrastructure investments to deliver community services needed to accommodate growth, or reflect other important infrastructure services delivered by local governments impacted by growth, Therefore be it resolved that the Province conduct a comprehensive review of existing funding mechanisms for financing growth-related infrastructure services, including Development Cost Charges and Amenity Agreements, that would identify approaches to: - Capture growth related capital costs, including, but not limited to infrastructure needed to support: emergency services, solid waste, cultural services, transit, recreation, affordable housing and the expansion of sport-related park services; - Provide local government with the flexibility to ensure that financing growth-related infrastructure services better reflects community circumstances and community objectives; and - Creates a consistent approach to land value capture and amenity charges that reduces the uncertainty associated with negotiated agreements.

Provincial Response

Ministry of Municipal Affairs and Housing In 2018, the Province initiated the Development Approvals Process Review DAPR to address challenges and identify opportunities for improvement in the current development approvals process, and to support local governments in eliminating barriers to affordable housing and accelerate the construction of the homes people need in their communities. As a first step the Ministry of Municipal Affairs and Housing engaged a broad range of stakeholders including UBCM, local government, the development industry and non-profit housing organizations to discuss the challenges of the current local government development approvals process in B.C. Among the areas identified for future analysis is development finance. The final report from this engagement was publicly shared at UBCM Convention 2019: https:news.gov.B.C..careleases2019MAH0139-001844 The Province recognizes that a review of development finance tools is a key component of improving the entire development approvals system. A Development Finance review was highlighted as a key next step. This review will involve research, analysis, policy development, consultation, and potentially legislation. The Province will engage with UBCM and key stakeholders as next steps are considered.

Convention Decision
Endorsed