Everywhere you go, prices are going up. Whether you are at the grocery store or building a new home, materials, shipping, and labour are all increasing in cost. When building a new home, these costs eventually get passed along to the end buyer.
Development Cost Charges (DCCs), are a tax put in place by local government whenever a new house gets built. In Kelowna, the average DCC cost is over $31,000 per home! This cost is similar for Lake Country, while Vernon is about $10,000 cheaper.
DCCs need to be managed by councillors so that the cost of housing doesn’t spiral out of control. Citizens should also be aware of where these funds are being spent and transparency should be the top priority.
City Councils are responsible for setting the cost of DCC's
- City councils can freeze DCC rates, and adjust them as needed to reflect the needs of communities.
- City councils can set different DCC rates for different housing types and set rates by neighbourhood.
- City councils can incentivize construction in core areas, or for denser forms of housing, by creating a DCC guide that supports these principles.