Development cost levies

523D.   (1) For the purpose of this section,

"capital project" means

(a) constructing, altering, expanding or replacing sewage, water, drainage, fire protection, police, highway and solid waste and recycling facilities,

(b) providing and improving park land, and

(c) establishing day care facilities in premises leased or owned, and acquiring property for such facilities.

(1.1) For the purposes of subsection (1) (a), a reference to a highway facility includes highway facilities that serve provincial and city interests if

(a) the city and the province have entered into an arrangement to share the costs of the highway facilities,

(b) the highway facilities directly or indirectly enable the integrated functioning of the provincial and city street systems, and

(c) the highway facilities, in whole or in part, directly or indirectly service the development.

(1.2) The amount of the development cost levy imposed for a purpose referred to in subsection (1) respecting highway facilities must not exceed the amount of the costs of the highway facilities to be paid by the city.

(2) Where, in approving a subdivision, the city requires that the mains of the systems referred to in section 292 (1) (e) be of a diameter in excess of that required to service the subdivision, the cost of providing such excess capacity shall be deemed to be a capital project in respect of which a development cost levy may be imposed subject to the provisions of this section.

(2.1) In addition to the capital projects referred to in subsections (1) and (2), Council may impose a development cost levy for the purpose of assisting in providing Replacement Housing in such a manner as it deems appropriate and assisting in providing such housing shall be deemed to be a capital project.

(2.2) For the purposes of this section, "Replacement Housing" means housing which Council reasonably anticipates will, as a result of development in the area in which a development cost levy is imposed, be necessary to house persons displaced and unable to afford comparable accommodation in that area and, in anticipating the housing required, Council may look to development anticipated during a 20 year period commencing on the date the by-law imposing the development cost levy is imposed.

(3) The Council may, by by-law, impose a development cost levy in accordance with this section,

(a) in the case of capital projects other than Replacement Housing, where the Council determines that development anticipated to take place in an area designated by it will contribute to the need to provide one or more capital projects in all or part of the area, and

(b) in the case of Replacement Housing, where the Council determines that development anticipated to take place in an area designated by it will contribute to the need to provide Replacement Housing inside or outside the area.

(4) Subject to subsections (10) and (11), the development cost levy shall be imposed on every person entitled to the delivery of a building permit authorizing the construction, alteration or extension of a building or structure or part thereof situate within the area designated by Council.

(5) The cost of a capital project may include

(a) all planning, architectural, engineering and legal costs related to the project, and

(b) the principal and interest on debt incurred to finance the capital project.

(6) The Council may undertake any of the capital projects referred to in subsections (1), (2) and (2.1).

(7) Subject to subsection (8.2), the Council may, from time to time, by by-law, amend the amount of a development cost levy to reflect the changed costs of a proposed capital project or to provide for the effects of inflation.

(8) Subject to subsections (8.2) and (9), a development cost levy imposed by this section shall be a condition of the issuance of a building permit and shall be paid at the time or times a building permit or permits are issued for the development or redevelopment of property in an area to which a by-law applies.

(8.1) For the purposes of subsection (8), the Council may define what constitutes development or redevelopment of property, and may provide that, where a development takes place in stages, each stage shall be deemed to be part of the development.

(8.2) A by-law imposing, or amending the amount of, a development cost levy that would otherwise be applicable to the construction, alteration or extension of a building or structure, or part of a building or structure, has no effect with respect to that construction, alteration or extension if

(a) the building permit authorizing that construction, alteration or extension is issued within 12 months of the date the by-law is adopted, and

(b) a precursor application to the building permit is in-stream on the date the by-law is adopted,

unless the applicant for that building permit agrees in writing that the by-law should have effect.

(8.3) For the purposes of subsection (8.2):

"in-stream" means not determined, rejected or withdrawn;

"precursor application", in relation to a building permit, means

(a) the application for the issuance of the building permit, if the application has been submitted to a designated official of the city in a form satisfactory to the designated official of the city and the applicable fee has been paid,

(b) an application for the issuance of a development permit, if

(i) the application has been submitted to a designated official of the city in a form satisfactory to the designated official of the city and the applicable fee has been paid, and

(ii) the construction, alteration or extension authorized by the building permit is entirely within the area of land that is the subject of the application, or

(c) an application for an amendment to a zoning by-law, if

(i) the application has been submitted to a designated official of the city in a form satisfactory to the designated official of the city and the applicable fee has been paid, and

(ii) the construction, alteration or extension authorized by the building permit is entirely within the area of land to which the application relates.

(9) The Council may, in respect of all or different classes of developments, authorize the payment of development cost levies in instalments, prescribe conditions under which the instalments may be paid and provide that, where not paid, the instalment shall be inserted in the real property tax roll as a charge imposed with respect to the parcel or parcels in relation to which the building permit was issued.

(10) No levy is payable under a by-law made under this section

(a) where a parcel of land is, or will be after construction, alteration or extension, exempt from taxation under section 396 (1) (c) (iv),

(b) subject to subsection (10.1), where a building permit authorizes the construction, alteration or extension of a building that will, after the construction, alteration or extension,

(i) contain less than 4 self-contained dwelling units, and

(ii) be put to no other use other than the residential use in those dwelling units,

(b.1) in relation to the construction, alteration or extension of self-contained dwelling units authorized under a building permit if

(i) subject to a by-law under subsection (10.2), each unit is no larger in area than 29 square metres, and

(ii) each unit is to be put to no other use other than the residential use in those dwelling units,

(c) where a by-law imposing a development cost levy on the cost of development exempts repair or renovation work as defined, to such repair or renovation work, or

(d) where a parcel of land satisfies both of the following conditions:

(i) the parcel is used for social housing, or it will be used for social housing after construction, alteration or extension occurs on the parcel;

(ii) the parcel is owned by

(A) the government,

(B) the government of Canada,

(C) the City of Vancouver,

(D) one or more First Nations,

(E) one or more First Nations corporations, or

(F) a non-profit organization.

(10.1) A by-law made under this section may provide that a levy is payable under the by-law in relation to a building permit referred to in subsection (10) (b).

(10.2) A by-law made under this section may establish an area for the purposes of subsection (10) (b.1) (i) that is greater than the area otherwise applicable.

(10.21) For the purposes of subsection (10) (d) (i), the Council may define what constitutes social housing.

(10.22) In subsection (10) (d) (ii), "First Nation", "First Nations corporation" and "non-profit organization" have the meaning given to them in section 523E.

(10.3) In subsections (10.4) and (10.5), "eligible development" means development that is eligible in accordance with an applicable by-law under this section as being for one or more of the following categories:

(a) for-profit affordable rental housing;

(b) a subdivision of small lots that is designed to result in low greenhouse gas emissions;

(c) a development that is designed to result in a low environmental impact.

(10.4) Subject to a by-law under subsection (10.5), the Council may waive or reduce a levy under this section for an eligible development.

(10.5) For the purposes of subsection (10.4), the Council, by by-law

(a) shall establish what constitutes an eligible development or a class of eligible development for the purposes of one or more categories of eligible development described in subsection (10.3),

(b) shall establish the amount or rates of reduction for an eligible development, which may be different for different categories of eligible development described in subsection (10.3) or different classes of eligible development established in the by-law, and

(c) may establish the terms and conditions that must be met in order to obtain a waiver or reduction under subsection (10.4).

(11) No development cost levy shall be imposed to pay for any capital project, or portion thereof, provided to the city pursuant to a by-law passed pursuant to section 292 or in respect of which an assessment has been imposed pursuant to Part XXIV.

(11.1) If an amount has been paid under section 193D (5) (d) in relation to development of a property, that amount must be deducted from the development cost levy in relation to the development of the property otherwise payable under this section for Replacement Housing.

(12) The by-law that imposes the development cost levy shall set out the basis of the levy and the levy may vary with respect to

(a) different zones or different defined or specified areas, and

(b) different uses or occupancies and, for the purpose of this subsection, Council may define what constitutes a use, occupancy or unit on such basis as it determines to be appropriate.

(13) The development cost levy may be based on a rate per foot on the length of the longest boundary of the parcel with respect to which the levy is imposed, the number of units, or the number of square feet permitted by the building permit in the development with respect to which the levy is imposed, or on such other basis as Council deems appropriate having regard to anticipated development rights and their contribution to the need for capital projects. The basis of development cost levies may vary for different capital projects. A development cost levy under this Part shall not be based on a percentage of the cost of a development. A development cost levy for any development as shown on an application for a development permit shall not exceed 10% of the value of the development as determined pursuant to the building by-law from time to time in force.

(14) The development cost levy shall be calculated with reference to the information contained on the application for a development permit or to records contained in the Land Title Office. Where development takes place in stages, the total development cost levy shall be apportioned and paid as each building permit is issued. Subject to the limitation contained in subsection (13), the portion of the levy to be paid on the issuance of each building permit shall, until the total levy is paid, be 10% of the value of the work authorized by the permit as determined pursuant to the building by-law.

(15) The Council shall, on written request, make available to any person subject to the levy the considerations, information and calculations used to determine the basis of a development cost levy, but any information respecting the contemplated acquisition costs of specific properties need not be provided.

(16) A development cost levy shall be deposited in a separate development cost levy reserve fund established for the purposes for which it was levied.

(17) Money in development cost levy reserve funds, together with interest, shall be used only

(a) except for money raised for the purposes set forth in subsection (2.1), to pay the costs of capital projects that relate directly or indirectly to the development or parcel in respect of which the levy was collected, or

(b) to pay a person subject to a development cost levy for some or all of the capital costs the person incurred in completing a capital project, other than Replacement Housing, if

(i) the capital project was completed under an agreement between the person and the Council, and

(ii) the capital project is included in the calculations used to determine the amount of that development cost levy.

(17.01) Payments out of a development costs levy reserve fund shall be authorized by a resolution of Council, and one resolution may authorize a series of payments in respect of any capital project.

(17.1) In relation to a capital project of providing and improving park land, money in a development cost levy reserve fund shall only be used for

(a) acquiring park land or reclaiming land as park land,

(b) providing fencing, landscaping, drainage and irrigation, trails, restrooms, changing rooms and playground and playing field equipment on park land, or

(c) to pay a person subject to a development cost levy for some or all of the capital costs the person incurred in completing a capital project described in paragraph (a) or (b) if

(i) the capital project was completed under an agreement between the person and the Council, and

(ii) the capital project is included in the calculations used to determine the amount of that development cost levy.

(18) Notwithstanding subsection (17), if money raised pursuant to a development cost levy exceeds what is necessary to provide the capital projects for which it was raised, the excess shall be set aside and spent on projects to benefit, directly or indirectly, the areas or zones in which the properties with respect to which the levy is imposed are located.

(18.1) In each year,

(a) the Director of Finance must prepare and submit to the Council a report for the previous year that includes the following, reported for each purpose under this section for which the Council imposes the development cost levy in the applicable year:

(i) the amount of development cost levies received;

(ii) the expenditures from the development cost levy reserve funds;

(iii) the balance in the development cost levy reserve funds at the start and at the end of the applicable year;

(iv) any waivers and reductions under subsection (10.4), and

(b) as soon as practicable after receiving the report, the Council must consider the report and make it available to the public.

(19) Nothing in this section restricts or affects any other power contained in this Act, provided however that the cost of any capital project shall be recovered only once.

(20) [Repealed 1997-25-206.]

1990-76-9; 1990-77-1; 1995-53-43; 1997-25-206; 1997-44-2; 2004-34-21; 2008-23-35; 2008-23-36; 2010-6-134; 2010-6-135; 2014-14-48; 2016-5-43,44; 2018-23-48; 2023-46-10; 2024-8-1.