HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 1 of the South Coast British Columbia Transportation Authority Act, S.B.C. 1998, c. 30, is amended

(a) in subsection (1) by adding the following definitions:

"development cost charge" means a charge imposed by a development cost charge bylaw;

"development cost charge bylaw" means a bylaw under section 34.21; ,

(b) in subsection (5) (a) by adding "in the definition of "collection entity" in section 34.2, in the definition of "issuing entity" in section 34.29" after "34 (1) (b),", and

(c) in subsection (5) by striking out "and" at the end of paragraph (d), by adding ", and" at the end of paragraph (e) and by adding the following paragraph:

(f) a reference to "zoning bylaw" in section 34.29 must be read as including a law of the treaty first nation.

2 Section 6 (2) (b) is amended by striking out "and" at the end of subparagraph (v), by adding "and" at the end of subparagraph (vi) and by adding the following subparagraph:

(vii) development cost charges, .

3 Section 13.4 is amended by adding the following paragraph:

(i) if the authority imposes development cost charges during that year,

(i) the amount of the development cost charges received in that year,

(ii) the expenditures from the reserve fund under section 34.27 in that year,

(iii) the balance in the reserve fund under section 34.27 at the start and at the end of that year, and

(iv) any waivers and reductions under section 34.24 (3) in that year.

4 The following Part is added:

Part 3.1 – Development Cost Charges

Definitions

34.2  In this Part:

"capital costs" includes

(a) planning, engineering and legal costs directly related to the work for which a capital cost may be incurred under this Part, and

(b) interest costs directly related to an eligible project that are approved by the inspector to be included as capital costs;

"collection entity" means the following, as applicable under the development cost charge bylaw:

(a) a municipality in the transportation service region;

(b) the Metro Vancouver Regional District;

(c) The University of British Columbia;

"development" means those items referred to in section 34.21 (1) (a) and (b) for which a development cost charge may be imposed;

"eligible project" means a project to provide, construct, alter or expand assets, facilities and other real or personal property required for the regional transportation system;

"inspector" means the inspector of municipalities under section 758 of the Local Government Act;

"subdivision" has the same meaning as in section 455 of the Local Government Act.

Development cost charges – imposition and collection

34.21  (1) Subject to an agreement under section 34.31, the authority may, by bylaw, for the purpose described in subsection (2) of this section, impose development cost charges on every person who obtains

(a) approval of a subdivision that is within the transportation service region, or

(b) a building permit authorizing the construction, alteration or extension of a building or structure that is within the transportation service region.

(2) Subject to subsection (3), development cost charges may be imposed under subsection (1) for the purpose of providing funds to assist the authority to pay the capital costs of an eligible project to service, directly or indirectly, the development for which the charge is being imposed.

(3) Development cost charges may not be imposed under subsection (1) for the purpose of providing funds to assist the authority to pay capital costs incurred before 2018 or in relation to any of the following:

(a) a motor vehicle, other than a ferry;

(b) a vehicle that may be propelled by muscular power;

(c) a parking facility.

(4) Subject to subsection (5), a development cost charge that is payable under a bylaw under this section must be paid before or at the time of the approval of the subdivision or the issue of the building permit.

(5) The minister may, by regulation in respect of all or different classes of developments, authorize the payment of development cost charges in instalments and prescribe conditions under which the instalments may be paid.

(6) A collection entity must collect and remit the development cost charges imposed under subsection (1) to the authority in the manner provided for in the development cost charge bylaw or, if applicable, in accordance with a regulation under subsection (5).

Inspector approval required for development cost charge bylaw

34.22  (1) A bylaw that imposes a development cost charge must not be adopted until it has been approved by the inspector.

(2) The inspector may refuse to grant approval under subsection (1) if the inspector determines that

(a) the development cost charge is not related to capital costs attributable to eligible projects included in the investment plan, or

(b) the authority has not properly considered the matters referred to in section 34.25 (4).

(3) The inspector may revoke an approval under subsection (1) in respect of all or part of a bylaw that imposes a development cost charge.

(4) If the inspector revokes an approval, the part of the bylaw in respect of which the revocation applies has no effect until the authority amends the bylaw and obtains the inspector's approval of the amendment.

(5) The minister may, by regulation, provide exemptions from the requirement in subsection (1) to obtain the approval of the inspector.

(6) A regulation under this section may provide that an exemption is or may be made subject to the terms and conditions specified by the minister or by a person designated by name or title in the regulation.

Circumstances in which development
cost charges are not payable

34.23  (1) A development cost charge is not payable in relation to a development authorized by a building permit that authorizes the construction, alteration or extension of a building or part of a building that is, or will be, after the construction, alteration or extension, exempt from taxation under any of the following:

(a) section 220 (1) (h) [statutory exemption for places of public worship] of the Community Charter;

(b) section 224 (2) (f) [permissive exemptions in relation to places of public worship] of the Community Charter;

(c) section 15 (1) (d) [exemption for places of public worship] of the Taxation (Rural Area) Act;

(d) section 396 (1) (c) (iv) [property tax exemptions – churches] of the Vancouver Charter;

(e) a law of a treaty first nation that provides for an exemption similar to an exemption under paragraphs (a) to (d) of this subsection.

(2) A development cost charge is not payable if a development cost charge has previously been paid for the same development unless, as a result of further development, additional capital cost burdens will be imposed on the authority.

(3) A development cost charge is not payable if the development does not impose additional capital cost burdens on the authority.

(4) Subject to a bylaw under subsection (5), a development cost charge is not payable in relation to a development authorized by a building permit that authorizes the construction, alteration or extension of a building that will, after the construction, alteration or extension,

(a) contain fewer than 4 self-contained dwelling units, and

(b) be put to no use other than the residential use in those dwelling units.

(5) The authority may, in a development cost charge bylaw, provide that a development cost charge is payable under the bylaw in relation to a building permit referred to in subsection (4).

(6) A development cost charge is not payable in relation to the construction, alteration or extension of self-contained dwelling units in a building authorized by a building permit if

(a) subject to a bylaw under subsection (7) or a regulation under subsection (10) (a), each unit is no larger in area than 29 square metres, and

(b) each unit is to be put to no use other than the residential use in those dwelling units.

(7) The authority may, in a development cost charge bylaw, establish an area for the purposes of subsection (6) (a) that is greater than the area otherwise applicable, subject to the maximum area permitted by regulation under subsection (10) (b).

(8) A development cost charge is not payable in relation to a development authorized by a building permit if the value of the work authorized by the permit does not exceed, as applicable,

(a) $50 000, if no bylaw under subsection (9) or regulation under subsection (10) (c) applies,

(b) the amount prescribed by regulation under subsection (10) (c), if no bylaw under subsection (9) applies, or

(c) the amount established by bylaw under subsection (9).

(9) The authority may, in a development cost charge bylaw, establish an amount for the purposes of subsection (8) (c) that is greater than the amount otherwise applicable under subsection (8), subject to the maximum value permitted by regulation under subsection (10) (d).

(10) The minister may, by regulation, do one or more of the following:

(a) prescribe an area for the purpose of subsection (6) (a);

(b) prescribe a maximum area that may be established under subsection (7);

(c) prescribe an amount for the purposes of subsection (8) (b);

(d) prescribe a maximum value that may be established under subsection (9).

Development for which charges may be waived or reduced

34.24  (1) In this section, "eligible development" means a development that is eligible in accordance with an applicable bylaw or regulation under this section as being for one or more of the following categories:

(a) not-for-profit rental housing, including supportive living housing;

(b) for-profit affordable rental housing;

(c) a subdivision of small lots that is designed to result in low greenhouse gas emissions;

(d) a development that is designed to result in a low environmental impact.

(2) Except as authorized under this section, the authority must not waive or reduce a development cost charge.

(3) Subject to a bylaw under subsection (4) and an applicable regulation under subsection (5), the authority may waive or reduce a development cost charge for an eligible development.

(4) For the purposes of subsection (3), the authority, by bylaw,

(a) must establish what constitutes an eligible development or a class of eligible development for the purposes of one or more categories of eligible development described in subsection (1),

(b) must establish the amount or rates of reduction for an eligible development, which may be different for different categories of eligible development described in subsection (1) or different classes of eligible development established in the bylaw, and

(c) may establish the requirements that must be met in order to obtain a waiver or reduction under subsection (3) and the conditions on which such a waiver or reduction may be granted.

(5) The minister may make regulations in relation to subsection (4)

(a) establishing,

(b) restricting, or

(c) establishing criteria for determining

what constitutes an eligible development or a class of eligible development for the purposes of one or more categories of eligible development described in subsection (1).

Amount of development cost charges to be specified in bylaw

34.25  (1) A development cost charge bylaw must specify the amount of the charge or charges imposed in one or more schedules of development cost charges.

(2) Development cost charges may vary as provided in subsection (3), but must be similar for all developments that impose similar capital cost burdens on the authority.

(3) Development cost charges may vary with respect to one or more of the following:

(a) different zones or different defined or specified areas;

(b) different uses;

(c) different capital costs as they relate to different classes of development;

(d) different sizes or different numbers of lots or units in a development.

(4) In setting development cost charges, the authority must take the following into consideration:

(a) future land use patterns and development;

(b) the phasing of works and services;

(c) how development designed to result in a low environmental impact may affect the capital costs of an eligible project;

(d) whether the charges are excessive in relation to the capital cost of prevailing standards of service in the transportation service region;

(e) whether the charges will, in the transportation service region,

(i) deter development,

(ii) discourage the construction of reasonably priced housing or the provision of reasonably priced serviced land, or

(iii) discourage development designed to result in a low environmental impact.

(5) The authority must

(a) provide to every collection entity, and

(b) make available to the public on request

the considerations, information and calculations used to determine the schedule or schedules referred to in subsection (1), except that any information respecting the contemplated acquisition costs of specific properties need not be provided.

Deductions from development cost charges

34.26  Despite a development cost charge bylaw, if

(a) an owner has, with the approval of the authority, carried out or paid the cost of carrying out all or part of an eligible project, outside the boundaries of land being subdivided or developed, and

(b) the cost of the eligible project is included in the calculations used to determine the amount of a development cost charge,

the cost incurred or paid by the owner in respect of the carrying out of the eligible project must be deducted from the development cost charge applicable to the development.

Reserve fund and use of development cost charges

34.27  (1) If the authority receives money from the imposition of a development cost charge, the authority must, by bylaw, establish a reserve fund for that purpose.

(2) Amounts received by the authority under section 34.21 or 34.31 must be deposited by the authority in, or be credited to, the reserve fund.

(3) Subject to subsection (4), money in the reserve fund, together with interest on it, may be used only for the following purposes:

(a) to pay the capital costs of an eligible project that relate directly or indirectly to the development in respect of which the charge was collected;

(b) to pay principal and interest on a debt incurred by the authority as a result of an expenditure under paragraph (a);

(c) to pay a person subject to a development cost charge for some or all of the capital costs the person incurred in completing an eligible project described in paragraph (a) if

(i) the project was completed under an agreement between the person and the authority, and

(ii) the project is included in the calculations used to determine the amount of that development cost charge.

(4) If the amount to the credit of the reserve fund is greater than required for the purposes set out in subsection (3), the authority may, by bylaw, transfer all or part of the amount to another fund established by the authority for a capital purpose.

(5) A bylaw under subsection (4) must not be adopted until it has been approved by the inspector.

(6) Authority to make payments under subsection (3) must be authorized by resolution of the board.

(7) The inspector may require the authority to provide the inspector with a report

(a) on the status of development cost charge collections, expenditures and proposed expenditures for a time period the inspector specifies, and

(b) on waivers or reductions under section 34.24 (3).

(8) After reviewing a report under subsection (7), the inspector may order the transfer of funds from the reserve fund to another fund established by the authority for a capital purpose.

Effect of bylaws adopted after application
for subdivision submitted

34.28  (1) This section applies in relation to a development cost charge bylaw that is adopted after

(a) an application for a subdivision of land located within a municipality has been submitted to a designated municipal officer and the applicable subdivision fee has been paid,

(b) subject to paragraph (c), an application for a subdivision of land located outside a municipality has been submitted to a district highway manager in a form satisfactory to that official, or

(c) an application for a subdivision of land in respect of a parcel of treaty lands of a treaty first nation has been submitted to the approving officer and the applicable subdivision fee has been paid.

(2) A development cost charge bylaw that would otherwise be applicable to the subdivision has no effect with respect to that subdivision for a period of 12 months after the bylaw is adopted.

(3) Subsection (2) does not apply if the applicant for that subdivision agrees in writing that the bylaw should have effect.

Effect of bylaws adopted after application for rezoning,
development permit or building permit submitted

34.29  (1) In this section:

"in-stream" means not determined, rejected or withdrawn;

"issuing entity" means the following, as applicable in relation to an application for a building permit, development permit or amendment to a zoning bylaw:

(a) a municipality;

(b) the Metro Vancouver Regional District;

(c) a local trust committee under the Islands Trust Act;

(d) the board of governors of The University of British Columbia;

(e) the minister authorized to enact bylaws applicable to the University Endowment Land under the University Endowment Land Act;

"precursor application" means, in relation to a building permit,

(a) the application for the issuance of the building permit, if the application has been submitted in accordance with the applicable procedures established by the issuing entity and the applicable fee has been paid,

(b) an application for the issuance of a development permit, if

(i) the application has been submitted in accordance with the applicable procedures established by the issuing entity and the applicable fee has been paid, and

(ii) the development authorized by the building permit is entirely within the area of land that is the subject of the application, or

(c) an application for an amendment to a zoning bylaw, if

(i) the application has been submitted in accordance with the applicable procedures established by the issuing entity and the applicable fee has been paid, and

(ii) the development authorized by the building permit is entirely within the area of land to which the application relates.

(2) A development cost charge bylaw that would otherwise be applicable to the construction, alteration or extension of a building or structure has no effect with respect to that construction, alteration or extension if

(a) the building permit authorizing that construction, alteration or extension is issued within 12 months after the date the bylaw is adopted, and

(b) a precursor application in relation to that building permit is in-stream on the date the bylaw is adopted.

(3) Subsection (2) does not apply if the applicant for that building permit agrees in writing that the development cost charge bylaw should have effect.

Records relating to development cost charges

34.3  Each collection entity must

(a) maintain records in accordance with a development cost charge bylaw, and

(b) permit an employee or agent of the authority to inspect and make copies of those records.

Agreement with collection entity to replace
development cost charges with payment

34.31  (1) The authority and a collection entity may enter into an agreement under which

(a) the authority agrees that all, or a portion of, the development cost charges that would otherwise apply are not required to be collected and remitted by the collection entity, and

(b) the collection entity agrees to pay to the authority an amount equal to the development cost charges given up by the agreement.

(2) If an agreement under subsection (1) applies, the collection entity must make payments to the authority in accordance with the agreement.

5 Section 194 (3) (d) is amended by adding the following subparagraph:

(v.1) all development cost charges referred to in section 199.1; .

6 The following section is added:

Investment plan references to development cost charges

199.1  The investment plan must, for each applicable year,

(a) set out the total amount the authority anticipates it will receive from development cost charges in that year,

(b) identify the eligible projects, as defined in section 34.2, the authority plans to engage in for or in relation to which expenditures from the reserve fund under section 34.27 will be required in that year, and

(c) estimate the money the authority will be required to pay in that year to fund the eligible projects referred to in paragraph (b).

Commencement

7  This Act comes into force on the date of Royal Assent.

 
Explanatory Notes

SECTION 1: [South Coast British Columbia Transportation Authority Act, section 1]

• adds definitions;
• amends a provision that provides for the application of the Act in relation to a treaty first nation.

SECTION 2: [South Coast British Columbia Transportation Authority Act, section 6] includes development cost charges in a list of means by which the authority may raise revenues as permitted in the Act.

SECTION 3: [South Coast British Columbia Transportation Authority Act, section 13.4] requires the authority to provide specified information in an annual report if the authority imposes development cost charges during the fiscal year for which the report is prepared.

SECTION 4: [South Coast British Columbia Transportation Authority Act, Part 3.1] authorizes the authority to impose development cost charges for the purpose of providing funds to pay the capital costs of eligible projects and provides for the imposition and collection of development cost charges in a manner that is similar to other development cost charge schemes.

SECTION 5: [South Coast British Columbia Transportation Authority Act, section 194] provides that an investment plan must set out the total amount of revenue the authority anticipates it will receive for each applicable year from development cost charges.

SECTION 6: [South Coast British Columbia Transportation Authority Act, section 199.1] provides for what must be included in an investment plan in relation to development cost charges.