Definitions

1   In this regulation:

"Act" means the South Coast British Columbia Transportation Authority Act;

"developer" means a person on whom a development cost charge is imposed;

"development cost charge amendment bylaw" means a bylaw that changes the amount of a development cost charge specified in a development cost charge bylaw;

"index date", in relation to a development cost charge, means the date of the subdivision approval or issuance of a building permit to which the charge relates.

[am. B.C. Reg. 190/2025, s. 1.]

Exemption — approval of development cost charge bylaws

2   (1) Subject to subsections (2) and (3), a development cost charge amendment bylaw is exempt from the approval requirement in section 34.22 of the Act if

(a) the bylaw changes the amount of one or more development cost charges once in a 12 month period after the date of the adoption of the bylaw, and

(b) the change in the amount of the development cost charge does not exceed the percentage change in the annual average Consumer Price Index for Vancouver, as published by Statistics Canada under the authority of the Statistics Act (Canada), for the calendar year before the date of the bylaw change referred to in paragraph (a) of this subsection.

(2) The authority may make use of an exemption under subsection (1) once each year for up to 4 years from

(a) the date of the adoption of a development cost charge bylaw approved by the inspector, or

(b) the date of the adoption of a bylaw approved by the inspector that amends a development cost charge bylaw.

(3) A copy of a development cost charge amendment bylaw under subsection (1) must be filed as soon as is reasonable with the inspector after the bylaw has been adopted.

Payment may be in instalments

3   A developer liable to pay a development cost charge may elect to pay it in instalments, subject to the conditions set out in sections 4 to 8.

Exception

4   Section 3 does not apply if the development cost charge is under $50 000 unless the authority has, in the development cost charge bylaw, authorized that all development cost charges under $50 000 imposed may be paid in instalments in accordance with this regulation.

Payment of development cost charge

5   A developer who elects to pay a development cost charge in instalments must pay

(a) 1/4 of the charge on the index date, and

(b) the balance of the charge by the earlier of

(i) the date 4 years after the index date, and

(ii) if occupancy permits are required, under the bylaws of a local government, in relation to the development, the date that is 15 business days after the date on which

(A) all of the required occupancy permits have been issued, and

(B) the local government gives written notice to the developer that the conditions, if any, in those permits have been satisfied and payment of the balance of the charge is due.

[en. B.C. Reg. 190/2025, s. 2.]

Payment of development cost charge — elections before January 1, 2026

5.1   (1) In this section, "former payment provision" means section 5 as that section read immediately before January 1, 2026.

(2) If a developer elects to pay a development cost charge in instalments and pays the instalment required by paragraph (a) of the former payment provision before January 1, 2026,

(a) section 5 does not apply in relation to the charge,

(b) the former payment provision continues to apply in relation to the charge, and

(c) section 6 is to be read in relation to the charge as though the reference to section 5 were a reference to the former payment provision.

[en. B.C. Reg. 248/2025.]

Failure to pay instalment

6   If a developer elects to pay a development cost charge in instalments and fails to pay an instalment within any time required for payment by section 5, the total balance of the development cost charge becomes due and payable immediately.

Interest

7   If a developer elects to pay a development cost charge in instalments, no interest is payable on the unpaid balance of that development cost charge until the unpaid balance becomes due and payable, but when it does, interest is payable from that date until payment at the rate or rates prescribed under section 11 (3) of the Taxation (Rural Area) Act for the period of non-payment.

Surety for payment of development cost charge

8   (1) A developer who elects to pay a development cost charge in instalments must, on the index date for the charge, deposit with the authority a surety in the form of

(a) an on-demand surety bond of an insurer that has a business authorization issued under the Financial Institutions Act,

(b) an irrevocable letter of credit from

(i) a bank, or

(ii) a credit union or trust company that has a business authorization issued under the Financial Institutions Act, or

(c) a security duly assigned.

(2) Subject to subsection (4), the authority may decline to accept the deposit of a surety under subsection (1) if the authority is not satisfied that, on default, the balance of the development cost charge will be recoverable.

(3) For certainty, subsection (2) does not authorize the authority to require or prohibit deposit of a form of surety described in subsection (1) (a), (b) or (c).

(4) Subsection (2) does not apply in relation to an on-demand surety bond for a development cost charge if the following criteria are met:

(a) the insurer who issues the bond has one of the following credits ratings:

(i) a rating of at least A- from AM Best;

(ii) a rating of at least A+ from Fitch Ratings;

(iii) a rating of at least A1 from Moody's;

(iv) a rating of at least A (high) from Morningstar DBRS;

(v) a rating of at least A+ from S&P Global Ratings;

(b) the bond provides the following:

(i) the insurer must pay the authority the balance of the charge within 15 business days after the authority demands payment from the insurer in accordance with subparagraph (ii);

(ii) a demand referred to in subsection (i) must be made in writing and must include

(A) a statement that the authority has determined that the developer has failed to pay the balance of the charge in accordance with section 5 (b), and

(B) the balance of the charge;

(iii) a payment referred to in subparagraph (i) must be made despite any objection by the developer and the insurer may not assert any defence or other grounds for not making the payment;

(iv) the insurer may not terminate its obligations under the bond unless

(A) the insurer gives written notice to the authority and the developer at least 90 days before the date on which the insurer intends to terminate its obligations, and

(B) the developer deposits another surety in accordance with this section at least 30 days before the date on which the insurer intends to terminate its obligations.

[en. B.C. Reg. 190/2025, s. 3.]