Last week, Surrey City Council approved an update to its law governing development expense charges (DCCs), decreasing rates at a time when homebuilders are having a hard time to advance brand-new construction.In 2025, the City of Surrey began the process of updating its 2024 DCC Law in action to brand-new provincial legislation. The upgraded law was sent to the Province for evaluation, however City personnel state the evaluation was delayed due to “job action”at the Province, so the 2024 law stays one of the most current.The City is now moving previous what would have been the 2025 DCC Law
to the 2026 DCC Bylaw, which will see DCC rates minimized throughout the board for domestic construction, by in between 7 %to 9%. The DCC rate for small multi-unit real estate(SSMUH)lots– multiplexes– was$55,260 per system in 2024, and is being reduced to$51,633. The rate for low-rise domestic buildings is being minimized from$33.47 per sq. ft to $30.72 per sq. ft., while the rate for high-rises is being decreased from$33.18 per sq. feet to $30.30 per sq. ft. DCC rates for business and industrial structures, nevertheless, are being increased. According to a staff report, the DCC decreases are possible for residential advancement “due to a decrease in program value for Parks Acquisition and Improvements and Collector Roadways, and a boost in DCC reserves,” but were not possible for commercial and industrial due to the fact that they do not pay Park DCCs and the existing DCC rates are already considerably lower than those for residential.The upgraded property DCC rates, the City states, compare positively to other municipalities.
“In comparison to Municipality of Langley, City of Coquitlam, and City of Burnaby, Surrey’s proposed 2026 DCC rates are comparable or lower that these municipalities with development needs and a mix of new and redevelopment,” said staff. “Surrey’s rates are most affordable in regards to high-rise developments, where Surrey provides a large number of systems each year, resulting in lower DCC rate per system.”
“Greater DCC rates are seen for townhouses; however, due to Surrey’s per square foot charge, the actual expense per system is variable and would be lower than the comparables for a smaller sized 1,200 sq. ft. unit (a total of $32,580).”
“If we desire people to be able to live and purchase a home in Surrey, we need to make housing more budget friendly to develop, “said Mayor Brenda Locke in a press release.” By reducing DCCs, we are supporting the shipment of more homes for existing and future locals while continuing to purchase the roadways, utilities, parks, and community features a growing city requirements.”
The 2026 DCC Law has now been submitted to the Province for approval, after which it will return to Council for last adoption. The brand-new rates would enter into impact instantly upon final adoption.Amenity Expense Charges(ACCs)At the same council meeting last
week, nevertheless, Surrey City Council likewise endorsed a brand-new feature cost charges program, which are similar to DCCs and were produced by the Province in Fall 2023 as a way to replace neighborhood amenity contributions(CACs). “In accordance with the [Local Government Act], ACCs fund only the population and work growth-related part of capital costs, “personnel described in a report.” The non-growth-related portions of facility capital expenses will be moneyed through other sources, such as, general incomes, reserves, loaning, and external funding sources where readily available. ACC rates are structured to recuperate eligible growth-related costs(including allowed funding), while stabilizing influence on development.”The City has proposed 2 financing streams for the ACC program. The first stream will generate $350 million to fund the
capital costs of city-wide amenities including a community centre, interactive art museum, park features, and more; while the 2nd stream will generate$ 147 million to money a portion of capital expenses and interest related to changing the Newton Leisure Centre.The total ACC rate is$10.58 per sq. ft of structure area for apartment or condos and$6.87 per sq. ft for townhouses. For non-residential buildings
, the rates are all listed below $0.39 per sq. ft. According to the City, a number of the proposed rates are decreases from the rates the City previously described throughout public assessment.
The City says it retained Coriolis Consulting Corp. as a specialist to examine the monetary effects of the brand-new ACC program and that Coriolis concluded that house jobs will normally see lower costs under the new ACC program than under the previous CAC program.Not-for-profit rental real estate run by a public housing body will be qualified for a full ACC waiver. For-profit economical rental real estate, with rents at least 10% listed below CMHC typicals for the City of Surrey, will be qualified for a full or partial ACC waiver depending upon the length of the housing arrangement securing the affordability. If the real estate agreement is for over 60 years, the job will be qualified for a full waiver, while contracts for less than 60 years will be qualified for partial waivers, depending on the length.Similar to DCCs, payment of ACCs can also be partly deferred, with
25%payable upon neighborhood approval or structure allow issuance and the staying 75%upon getting occupancy or after 4 years.Last week, Surrey City Council endorsed the brand-new ACC program. City personnel is now dealing with preparing the requisite laws, which will exist to Council for readings at a later date.