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.

The image is a brochure titled "Development Cost Charges (DCC) Update - September 2024," from the District of Sooke. It provides an overview of Development Cost Charges (DCCs), their purposes, what they cover, exemptions, and updates related to new bylaws. The layout is divided into several sections:What Are DCCs? DCCs are charges collected by local governments to fund infrastructure expenditures needed for growth. They are regulated by provincial law and help accommodate development through capital cost investment. What Do DCCs Pay For? DCCs fund capital projects related to transportation, drainage, sanitary sewer, water infrastructure, and parkland acquisition. What Do DCCs Not Pay For? DCCs cannot be used for existing infrastructure repairs, operations, vehicles, or community facilities like libraries and firehalls. Who Pays DCCs & When? DCCs are paid by developers at the time of subdivision or building permit issuance. Exemptions From DCCs Some developments are exempt from DCCs, such as places of worship, buildings with permits under $50,000, and small self-contained residential units. In-Stream Applications Provides details on how DCCs apply to projects that were already in progress before a new bylaw was enacted. DCC Waivers & Reductions Outlines waivers and reductions for specific development types under the Town Centre Revitalization Bylaw, including reductions for affordable housing or green projects. DCC Credits Explains the process for developers to receive DCC credits for constructing infrastructure that meets specific criteria.
Development Cost Charges (DCC) Brochure – click image to enlarge
The image is the second page of the District of Sooke's "Development Cost Charges (DCC) Update" brochure, dated September 2024. It explains different categories of DCCs for various types of developments and provides a table listing DCC rates. The layout includes the following sections:What are the different DCC categories? Residential categories include: Low Density Residential: Single-detached dwellings on separate parcels. Medium Density Multi-Family: Developments like townhouses and manufactured homes. High Density Multi-Family: Apartment buildings with shared hallways and entrance facilities. Non-Residential categories include: Commercial: Developments in commercial zones where the predominant use is of a commercial nature. Industrial: Developments in industrial zones where the primary use is industrial. Institutional: Developments in public or institutional zones. What are the DCC rates? A table outlines the DCC rates by category, listing the costs for each type of infrastructure (Transportation, Drainage, Sewer, and Parks) and the total DCC for each category. The table breaks down costs for both residential and non-residential categories: For Low Density Residential, the total DCC is $20,568.21 per lot. For Medium Density Multi-Family, it is $11,224.99 per unit. For High Density Multi-Family, it is $6,571.36 per unit. Non-residential categories are calculated per square meter of gross floor area: Commercial: $101.73/m² Industrial: $68.48/m² Institutional: $101.28/m² Contact Information A yellow box provides contact details for the District of Sooke for any questions regarding DCCs, including phone and email information.
Development Cost Charges (DCC) Brochure – click image to enlarge

Frequently Asked Questions

What are Development Cost Charges (DCCs)?

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.

Who pays DCCs and when?

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.
What do DCCs pay for?

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)
What do DCCs not pay for?

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
Are there any exemptions from paying DCCs?

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.

Can I pay DCCs in installments?

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.

When a new bylaw coming into effect, how are in-stream applications affected?

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.

Are there any other charges I should be aware of?

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?