The B.C. government recently announced it is creating more flexible and extended payment timelines for homebuilders, so more homes can continue to be built at a time when construction costs and interest rates are high.

The Ministry of Housing and Municipal Affairs said government will amend the Development Cost Charge and Amenity Cost Charge (Instalments) Regulation to expand the use of on-demand surety bonds province-wide.

On-demand surety bonds are financial guarantees that homebuilders provide to give assurances that they will fulfil their construction contract.

This will improve the viability of housing projects as homebuilders can invest in new housing projects sooner. Lower carrying costs will also help unlock more housing developments that need additional capital, the ministry said.

“We are committed to finding innovative and cost-effective solutions to build housing, so everyone has a fair chance to live in communities where they work and belong,” said Ravi Kahlon, Minister of Housing and Municipal Affairs. “These changes are about supporting housing development and easing the financial burden on builders and developers so they can get shovels in the ground faster to help unlock more homes for people in B.C.”

The changes will apply to qualified developers in communities with a development cost charge, amenity cost charge or a school-site acquisition charge. As well, homebuilders will have four years, rather than two, to pay the charges. They will be able to pay 25% at permit approval and the remaining 75% at occupancy or within four years, whichever comes first.

The changes are expected to come into effect on Jan. 1, 2026. This will provide local governments time for system upgrades, staff training and planning.

The Development Cost Charge and Amenity Cost Charge (Instalments) Regulation, unchanged since 1984, requires developers to pay a minimum of one-third of the total charge when the subdivision or building-permit is approved and the full amount within two years.

Qualified developers have been approved by a surety company to use on-demand surety bonds and that have greater than $50,000 in development cost charges or amenity cost charges payable to a local government.

An on-demand surety bond can be converted to cash within 15 days without court involvement.

Neil Moody, Canadian Home Builders’ Association of BC CEO said, “Our association has long advocated for flexibility in managing upfront development costs, which present significant financial barriers to homebuilders. The ability to defer a portion of development charges and use on-demand surety bonds is a practical measure to address the current economic realities of building housing across British Columbia. This announcement reflects significant collaboration that will help unlock capital, ease cost pressures and support the delivery of more homes.”

Urban Development Institute president and CEO Anne McMullin added, “The requirement to pay development fees up front has become increasingly onerous for builders, especially as fees rise and access to capital tightens. By shifting payment to occupancy, the provincial government is enabling more projects to move forward. This policy lowers early-stage financing costs, frees up capital for construction and helps builders reinvest in new housing.”

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