The Province of British Columbia has amended the Development Cost Charge and Amenity Cost Charge (Instalments) Regulation, B.C. Reg. 166/84. The amended regulation now bears the title “Development Charge (Instalments) Regulation,” reflecting a broader scope of applicable charges. Several key definitions have been updated and expanded to align with the Local Government Act. A new definition of “Act” explicitly refers to the Local Government Act, ensuring consistent interpretation. The term “charge” has been redefined to encompass charges imposed under section 559 (1) for development cost charges, section 570.2 (1) for amenity cost charges, and section 572 (1) for school site acquisition charges, providing clarity and legal consistency.

Section 4 of the regulation has been repealed and replaced to restructure the installment payment framework. Under the revised terms, a developer who opts to pay in installments must pay one-quarter of the charge on the index date. The remaining balance must be paid by the earlier of two deadlines: either within four years of the index date or, if occupancy permits are required for the development, within 15 business days after all required occupancy permits have been issued and the local government provides written notice confirming all permit conditions have been satisfied and the final payment is due.

Section 7, which governs the security or surety for the payment of these charges, has also been overhauled. The new provisions stipulate that developers choosing to pay by instalments must deposit a surety on the index date. This surety can take the form of an on-demand surety bond from an insurer with a valid business authorization under the Financial Institutions Act, an irrevocable letter of credit from a bank, credit union, or trust company with such authorization, or a duly assigned security. To protect local governments, financial officers may refuse to accept a surety if they are not confident that the balance of the charge can be recovered in the event of default, though this discretion does not extend to refusing any of the listed forms of surety outright.

Additional protections are introduced specifically for on-demand surety bonds. If the bond is issued by an insurer with an acceptable credit rating — at least A- from AM Best, A+ from Fitch Ratings, A1 from Moody’s, A (high) from Morningstar DBRS, or A+ from S&P Global Ratings — then the financial officer cannot reject the surety under the discretionary grounds. The bond must guarantee that the insurer will pay the balance of the charge to the local government within 15 business days of a written demand, regardless of any objections by the developer, and without asserting defences against the payment.

Overall, these amendments aim to strengthen the framework for managing development-related charges in British Columbia. By clarifying definitions, specifying payment timelines tied to key project milestones, and setting rigorous standards for sureties and their enforceability, the changes seek to balance the need for local governments to secure timely payment of development charges with the flexibility for developers to manage their cash flow through installments.

British Columbia (166/84) July 2, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.