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DCCs (Development Cost Charges) for Kelowna

Blog by | November 22nd, 2007

The City of Kelowna has propsed new DCCs for Kelowna. DCCs are the Development Cost Charges that are charged to developers of new developments to cover the city's costs for sewer, water, etc. Most developers currently do not build secondary suite zonings into their subdivisions because the city would charge a DCC on the house AND a DCC on the secondary suite. With DCC charges ranging from $20,405 to $35,117 that is a big deal! Buildings that already have suites only have to pay $500 or the cost of a building permit to make the suite legal. So it makes you wonder why in the world would a developer ever opt to pay an extra $30,000 when people can do it after it's built for a fraction of the cost?


The City of Kelowna has proposed a new rule for DCCs where a developer would still have to pay two DCCs for houses with a secondary suite, but the second set of charges would have a reduced rate.


Most developers would love to be able to zone for secondary suites, but can't afford to do so if they want their prices to stay compeitive with other developments in the area.


The current set-up is going to lead to situations like what Whistler is currently dealing with: illegal suites.