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 are based on the principles that "growth pays for growth" and "benefiter pays" — meaning the costs of new infrastructure should be paid by those who will use and benefit from it.
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 take 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 help fund growth-related infrastructure such as:
roads and transportation infrastructure
water infrastructure
sanitary sewer systems
storm drainage systems
parkland acquisition and improvements
These infrastructure investments support the City’s ability to accommodate population and employment growth.
DCCs apply to most new development. Certain exemptions apply under provincial legislation and City bylaws — see "Exemptions and waivers" below.
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
DCCs vary depending on the type and scale of development. Charges may be calculated per lot (typically for single-family subdivisions), per square metre (commonly used for multi-family, commercial or institutional developments) or per hectare (often applied to industrial development).
The current rates are established through the updated DCC bylaw adopted April 29, 2026.
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 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
Applications submitted before the bylaw adoption date — the date Council gave the new DCC bylaw final reading — may qualify for in-stream protection. This means eligible projects may pay DCCs at the previous rates for up to one year from the adoption date.
To qualify, a precursor application must:
be complete to the satisfaction of the City, with all applicable fees paid
be actively in progress — not rejected, withdrawn or issued
Additional criteria apply depending on your application type:
Rezoning or development permit applications The previous DCC rates apply if final subdivision or building permit approval is granted within 12 months of the bylaw adoption date.
Subdivision applications The previous DCC rates apply if:
the application has undergone pre-submission review and is considered complete by City staff, with all materials uploaded and fees paid
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
The new DCC rates apply in all circumstances one year after the bylaw adoption date. Any building permit or subdivision application extensions beyond that date are subject to the new rates.
As of January 1, 2026, developers can pay DCCs in two instalments:
25 per cent is due at subdivision approval or building permit issuance, whichever comes first
75 per cent can be deferred until whichever of the following comes first: four years following subdivision approval or building permit issuance, or 15 business days after all occupancy permits have been issued and the City has given written notice that any permit conditions have been satisfied
If deferring 75 per cent, developers must provide financial security in the form of an irrevocable letter of credit from a financial institution or trust company authorized under the Financial Institutions Act, or 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.
If DCCs have already been paid on a property, you may be eligible for an Existing Use Credit when expanding or redeveloping, provided the land use remains the same or changes between residential types. Credits are based on the rates in place at the time of the original permit or subdivision approval.
Existing Use Credits do not apply to the addition of secondary suites or accessory dwelling units.
Applicants are responsible for providing all necessary information — such as floor plans and gross floor area calculations — for staff to determine whether any credits apply.
Some developments are exempt from DCCs, including:
residential units with an area of 29 m² or less
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 the 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.
