Development Cost Charges
Updated October 1, 2024
Development Cost Charges (DCCs) are monies that are collected from land developers by a municipality, to assist in financing the cost of upgrading or providing infrastructure services to support the new development. Imposed by bylaw under the Local Government Act, the charges are intended to facilitate development by providing a method to finance capital projects related to roads, drainage, sewers, water and parkland.
Recent updates:
- September 23, 2024 – The District of Sooke undertook a minor update to reflect updated project construction costs that encompass inflationary changes and the most recent tender prices in Spring-Summer 2024. This process included a stakeholder session on April 10, 2024. On September 23, 2024, DCC Bylaw 2024 (link coming soon) was adopted.
- June 13, 2022 – The District of Sooke undertook an update to its Development Costs Charges Bylaw from February 2021-June 2022. On June 13, 2022, DCC Bylaw No. 775, 2021 was adopted.
Frequently Asked Questions
DCCs are fees developers must pay to help cover the cost of new infrastructure, like roads, sewers, and parks, needed due to new development in the District of Sooke.
DCCs apply to most developments, including residential homes, multi-family units, commercial buildings, and industrial developments.
DCCs are paid by applicants / developers at time of:
- Subdivision, for approval to create new single-family lots; or
- Building Permit, upon application to construct multi-family residential, commercial, industrial or institutional developments.
DCCs pay for the capital upgrades needed to support growth by assisting in the funding of:
- Transportation Infrastructure
- Drainage Infrastructure
- Sanitary Sewer Infrastructure
- Parkland Acquisition and Development
- Water Infrastructure (collected by Sooke on behalf of the Capital Regional District)
There are a number of components that DCCs cannot pay for, including:
- Replacing infrastructure solely to service existing residents
- Operations and maintenance
- Community facilities such as recreation centres, libraries and fire halls
- Vehicles and equipment
Some developments may be exempt from DCCs, such as churches or small residential buildings under 29 square meters or if the value of the work authorized by the building permit does not exceed $50,000. However, always check with the District for specific exemptions.
Yes, if your DCC charges are $50,000 or more, you may be eligible to pay in three equal installments over two years, but this requires a deposit and security.
The new DCC rates come into force immediately after the Development Cost Charge Bylaw is adopted by Council. However, the Local Government Act provides special protection from rate increases for development applications that are submitted prior to the adoption date. In-stream protection applies to complete building permit and subdivision applications that were received prior to the adoption of the new DCC Bylaw. Protection is also extended to complete rezoning and development permit applications that were submitted prior to the adoption of the new DCC Bylaw. The previous DCC rates will apply to any developments which receive final subdivision or building permit approval within 12 months of the adoption of the Bylaw. Therefore, if an application meets the required criteria of being submitted prior to the adoption of the new DCC Bylaw, it is provided protection from DCC rate increases until the date of bylaw adoptions if final subdivision approval or building permit is obtained.
While not technically a Development Cost Charge, the District also collects School Site Acquisition Charges on behalf of School District 62.
Where can I find out more information?
- DCC Bylaw, 2024 (link coming soon)
- Bylaw No. 775, 2021 Development Cost Charge Imposition Bylaw
- CRD Water DCC Bylaw – visit the CRD Website at www.crd.bc.ca