Development Cost Charges (DCCs) are one-time fees that developers pay to help cover the cost of new infrastructure needed to support community growth. They help ensure that development contributes its fair share toward the growth-related infrastructure improvements that new development benefits from. Non-growth-related infrastructure is paid for by existing ratepayers.
DCCs are collected at the time of subdivision approval or when a building permit is issued.
Bylaw update
Updated DCC rates approved by Courtenay City Council took effect April 30, 2026. The previous major update was in 2016, with minor revisions in 2022, 2023 and 2024. The current update reflects changes in infrastructure planning, growth projections and provincial legislation.
DCCs fund one-time capital costs — such as planning, engineering, design, legal and studies — for growth-driven projects in these categories:
transportation services
water services
drainage services
sanitary services
parkland acquisition and improvements
fire protection facilities
DCCs can't be used for projects that only serve the existing population, such as asset replacement or repairs to existing infrastructure, or for operations and maintenance costs. They also can't be used for projects eligible for Amenity Cost Charges (ACCs).
Recent changes to provincial legislation have expanded the scope of DCCs. Local governments can now use DCCs to fund additional services, including fire protection facilities, police services and solid waste and recycling facilities.
DCCs apply to most new development. DCCs don't apply if the development doesn't create new capital costs, or if charges have already been paid for the same project. Expansions that increase capital costs or require additional servicing may attract additional charges.
DCCs are collected at different stages depending on the type of development:
single-family residential subdivisions: at the subdivision approval stage
most other developments: when a building permit is issued
The DCC rates apply city-wide and reflect a 1 per cent Municipal Assist Factor (MAF). DCCs are charged based on development type
Land use
Unit
Proposed rate
Low density residential (e.g., single family)
per lot or dwelling unit
$21,832
Medium density residential (e.g., triplex, fourplex, townhouse)
per dwelling unit
$12,278
High density residential (e.g., apartment, detached accessory dwelling unit)
The City also collects regional sewer DCCs on behalf of the Comox Valley Regional District (CVRD) under the Comox Valley Sewerage Service Development Cost Charges Bylaw No. 572, 2019. These apply to development within both Courtenay and Comox and are remitted monthly to the CVRD. For more information, visit the Comox Valley Regional District's website.
Local governments are required to assist development through the Municipal Assist Factor (MAF), a policy decision made by Council. The MAF works in addition to the benefit allocation between new growth and existing residents, and must be set at a minimum of one per cent, up to a maximum of 99 per cent.
The City has set a one per cent assist factor across both the DCC and ACC programs. In making this decision, Council considered the impact of the proposed rates on the viability of new development and infrastructure needs over the 20-year program horizon.
In-stream protection
If your application was submitted before the bylaw adoption date, you may qualify for in-stream protection — meaning you can pay DCCs at the previous rates for up to one year, and are exempt from the new ACC rates until the ACC bylaw is amended.
To qualify, an in-stream precursor application must be a complete application to the satisfaction of the City, with all applicable fees paid, and must be actively in progress — not rejected, withdrawn or issued.
Additional criteria apply depending on your application type:
Rezoning, development permit or building permit applications Previous DCC rates will apply to developments with in-stream precursor applications that have a building permit issued within 12 months of bylaw adoption.
Subdivision applications The previous DCC rates apply if:
the Preliminary Layout Review does not lapse during the one-year protection period
final subdivision approval is granted before the one-year anniversary of the bylaw adoption date
When in-stream protection expires
Newly adopted ACC and DCC rates will apply in all circumstances for building permit and subdivision applications:
one year after the DCC bylaw adoption date
following the scheduled inflationary update to the ACC bylaw in early 2027
Any building permit or subdivision application extensions beyond those dates are subject to the new ACC and DCC rates.
As of January 1, 2026, developers can choose to pay DCCs in two instalments:
25 per cent is due on receipt of subdivision approval or building permit issuance, whichever comes first
75 per cent can be deferred until the earlier of: four years after subdivision approval or building permit issuance, or 15 business days after all occupancy permits are issued and the City has confirmed in writing that any permit conditions have been satisfied
If deferring 75 per cent, developers must provide financial security in one of the following forms:
an irrevocable letter of credit from a financial institution or trust company authorized under the Financial Institutions Act
an on-demand surety bond from an insurer authorized under the Financial Institutions Act with prescribed credit ratings
Developers may also choose to pay the full amount at once.
Developments on which DCCs have already been charged may be eligible for Existing Use Credits, in accordance with the City's DCC Policy. Credits may be provided if the development maintains the same land use, or if the change in land use is from one residential type to another.
All Existing Use Credits for expansions or redevelopments are based on the rates in place at the time of the original building permit issuance or subdivision. Existing Use Credits are not granted for the addition of suites, including secondary suites and accessory dwelling units.
Applicants are responsible for providing all necessary information — such as floor plans and gross floor area — for staff to determine whether any credits apply.
Certain developments are exempt from DCCs, including:
small self-contained units under 29 m²
building permits issued for work not exceeding $75,000
places of worship (though other uses incorporated into the same building, such as daycares, may still be subject to DCCs)
developments where DCCs have already been paid and new construction does not increase infrastructure demand
Under the Local Government Act, the City may also waive or reduce DCCs for eligible developments. Courtenay currently offers waivers for eligible affordable housing projects under Development Cost Charge Waiver (Affordable Housing) Bylaw No. 3118, which expires June 1, 2027 and is scheduled for review in 2026. When the City provides a waiver or reduction, the waived fees are financed through non-DCC revenue sources such as general taxation.
