Amenity Cost Charges and Affordable Housing

Year
2025
Number
NR25
Sponsor(s)
Victoria

Whereas the Province created new legislation that defines the uses to which local governments can apply Amenity Cost Charges ACCs levied from development; And whereas the legislation prevents local governments from applying ACCs to affordable housing; And whereas many local governments rely on amenity contributions, beyond bonus density, to capitalize housing reserve funds or comparable finance tools: Therefore be it resolved that UBCM ask the Province to expand the eligible uses of Amenity Cost Charges to include affordable housing; And be it further resolved the Province create an alternative funding tool that does not rely on increases to the costs of new housing.

Provincial Response

Ministry of Housing and Municipal Affairs The Amenity Cost Charge ACC tool helps local governments fund the capital costs of amenities needed to support population growth and new housing supply. ACCs can be used to fund amenities that provide social, cultural, heritage, recreational, or environmental benefits to a community such as community centres, recreational facilities, libraries, and childcare spaces. The ACC tool requires a connection between a new development and the amenity to justify the charge. That connection cannot be readily made for affordable housing needs in a community, therefore, cannot be included in ACC bylaws. To support local governments in securing affordable housing contributions in new development, the Province introduced a new Inclusionary Zoning tool in Spring 2024. Inclusionary zoning bylaws enable local governments to secure a portion of units in a new residential development as affordable housing or to secure cash-in-lieu of those units. Together with updated density bonus provisions and senior government funding programs, these tools provide more appropriate and effective mechanisms to support affordable housing outcomes.

Convention Decision
Endorsed