Development Cost Charges (DCC) and Amenity Cost Charges (ACC) Updates

The city should consider raising property taxes for all property owners to address their own overspending, rather than placing the financial burden on developers and new home buyers through higher costs and fees. Taking a cue from the Township of Langley’s mayor, the city could also focus on releasing more housing development to meet growing demand and improve affordability.

City of Abbotsford is trying to pay upfront on these from devlopers, which will increase the cost of housing. the city should be funding through long term mortgage, as these infrastrure upgrades have life of over 100 years, where the upgrades can be paid over 50 years to make the housing affordable for new home owners coming to market.
The developments funds can be collected thruough property taxes or special levies for new homes with tax levied over 50 years to pay for the mortgage.
These infrastructure upgrades will be enjoyed by the community residents for many many years.
So I would suggest to get these upgrades to be amortized over 50 years to make development not upfront loaded but based on estimated life.
The city can borrow for residents and let the residents pay thru taxes a bit by bit.
The city should approach federal government or provincial govement to advance these long term loans to cities all across. the successful cities means successful province and successful country.
Satish Sharma, CPA.
Maple Leaf Homes.

Respected Sir,
I am a local resident , a small Builder and General Contractor.
My serious concern on these increasing costs over 52% ($ 20203/- ) in DCC and new ACC $7800/- Total $28.031/- for a single house (means $8-10/- per sq ft ) will drastically impact not only on builders/developers ultimately these costs will be paid by end users (new & First time buyers).
One side we all are chanting at every platform for affordable housing, how it is possible when neither federal, provincial and nor local governments support, instead taking every opportunity to increase taxes whether like Property taxes, carbon tax, speculation & vacancy tax, tax tax ....
Lumber, concrete, drywall, insulation, steel ..... all building material costs increased in many folds, besides killing high interest rates.
This huge increase definitely helps to fill city pockets though trust me it will discourage not only builders/ investors from developing housing projects also new comers planning to move in our city.
Totally disappointed with your proposal, actually for the future buyers who have to pay more price as end users.
Please reconsider your proposal before moving further. I would suggest taking all residents in confidence by arranging open houses, media and local news as it has a huge impact on our city's long term development as no new & first time home buyer can afford these additional costs being already facing hardships due to higher housing prices & interest rates of loans.
Thanks

To whom it may concern,

As a long-time developer and taxpayer in Abbotsford, I feel compelled to express my deep frustration with the increasing inefficiency and skyrocketing costs of development approvals in this city. The fact that projects are sitting in the city’s system for four years or more is not only unacceptable but also unsustainable for those of us who are working to grow this community.

It is absolutely mind-boggling that city planners, who are employed and paid with taxpayer dollars, seem to have no understanding of the real cost of development. Their lack of urgency is crippling this city’s progress, while their decisions are disconnected from the realities that developers face. As developers, we are the real city planners. We understand this city, its needs, and its potential.
Yet, our input is consistently ignored, while planners who come from small, disconnected municipalities make decisions that don’t fit the scale or urgency of Abbotsford’s growth.

I strongly believe that before anyone is hired by Abbotsford’s city planning office, they should be required to complete at least one development project in a municipality.
This would give them a real understanding of the financial and logistical burden their slow, inefficient processes impose on those who are actually building this city.

Let’s talk numbers: A project stuck in the system for four years incurs a staggering amount of unnecessary costs.
Median property value is $1,200,000.00
Years 2020-2024.
Interest cost for
(Yr1 at 2.5% $30,000.00), (Yr2 at 4.5% $40,000.00, )
(Yr3 at 6% $56,000.00 )(Yr4 at 7% $80,000.00)
$210,000.00 in interest alone during a four-year delay for a small 2 lot subdivision. Add on the application fees $10k, consultant costs $30k, and closing cost $30k. You’re looking at a massive financial burden before a shovel even hits the ground. $1.5m or $750k per single side and now add on the $58k x2 + ACC
$8k And that’s without even considering the fact that developers are sometimes asked to upgrade city services blocks away from their projects! We are almost headed into 2025 and our planning department still can't even wrap their heads around one of the first developments to happen in life, Turning 1 property into TWO!
Maybe its time developers charge the city a delay fee??


Cities like Surrey are approving lot splits and developments in under 3 months, while here in Abbotsford, we wait for years. How is that acceptable?
Look at the map 85% of our land is ALR Abbotsford’s planners can’t seem to manage development on the 15% of land that isn’t in the ALR, despite claiming to support development in the OCP.

It’s time for Abbotsford’s planning department to step up, or this city’s growth will come to a grinding halt! We, the developers, are ready and willing to invest in this community—but we cannot continue to do so under these increasingly ridiculous conditions.
Maybe it's time for developers to put the breaks and allow the developments to stall?

https://services.abbotsford.ca/OnlineReporting/InstreamDevelopmentApplications.aspx

I strongly oppose this proposal. Instead of penalizing developers, we should be focusing on incentivizing them to create more housing, and this policy does the opposite. The proposed 48-80% increase in Development Cost Charges across all property classes is excessive. Such a sharp rise in DCCs during a housing crisis will lead to higher housing costs as developers pass these increased expenses onto homebuyers and renters. With housing prices already at record highs, this move would further strain affordability, making it harder for families to enter the housing market and for businesses to afford new commercial leases.

The combined impact of the proposed DCC increases and the recent addition of Amenity Contribution Charges (ACC) would cause many developers to reconsider launching new projects in Abbotsford. By imposing such a significant financial burden on new development, Abbotsford risks discouraging investment, which will ultimately undermine the city’s long-term growth and prosperity. We should be looking for ways to make development easier and more affordable so that we are able to create many more new units across the housing spectrum.

I strongly oppose this tax increase. It will make Abbotsford even less affordable. Secondly, can the City outline where DCC monies have been allocated in the past? For areas of Abbotsford being densified (i.e.// McCallum Lane) will the funds be used to keep the area child and pedestrian friendly?

We need a public committee to assess the damage the planning department is doing to local developers and the city population with unregulated spending of out tax dollars.

I agree with this proposal.
As the population of Abbotsford grows, the demand for growth related large off-site infrastructure projects such as water supply & treatment, sewage collection & treatment, drainage facilities, major road upgrades, fire, police, solid waste facilities and new park acquisitions increases tremendously.
I’ve lived in Abbotsford for the last 30 years and would not want a hefty increase in my property taxes because I have to subsidize the cost of all of the above for new construction. We don’t need more condos in Abbotsford!

Like almost all the comments below I do not agree with this increase. The cost of housing in Abbotsford is so high. The cost will not be absorbed by the developers but past down to the home buyers. It’s just unfair and ridiculous

Not in favour.

I see this as yet another incurred “cost” for developers that will ultimately slow building rates and raise housing costs. We in Abbotsford (as should all Canadian municipalities) should be prioritizing housing construction and putting asses inside of them. Increasing development costs with the presented rationale goes completely against that.

I am dissappointed that this arbitrary cost increase is presented without any hard figures from the City of Abbotsford. If these figures exist, the City of Abbotsford has failed in their marketing campaign of this issue.

Instead of raising costs, I would like to understand why they are so high to begin with? I see this as a solution that ignores the bigger problem - exactly why does it cost the City of Abbotsford this much? How tightly controlled are their budgets to complete this work?

You are asking private industry to tighten their belt and fork out more cash - what is exactly is the City of Abbotsford doing about it on their side? From what I am reading, absolutely nothing. If they are doing something about it, again the marketing department has failed to present this side of the story.

From the outside, this appears to be an extremely lazy approach to a problem that the City of Abbotsford has not effectively communicated to its constituents.

Ultimately increased development costs must be passed on to the buyer of the property making the price of new construction higher and supporting higher prices across the board. As a homeowner, I’m generally in favour of higher prices, but this proposal seems to fly directly in the face of a societal goal of increasing the housing supply and lowering the cost of living. Reducing the development costs would directly and immediately contribute to this goal. Higher development costs up front substantially increase the financial risks of home-building. This in turn squeezes smaller builders who cannot afford to take such risks out of the market which further reduces competition and harms small businesses. The end result is increased prices, reduced economic activity in the community, a weaker small business sector, fewer jobs and a corresponding decrease in prosperity.

Additional infrastructure and City services which benefit the entire City population should be paid for through property taxes which are debated as part of the political process each election year meaning that the users of and the payors for the services have a fair electoral influence over the process.

Reducing development costs relative to other communities in the region with which Abbotsford is in competition, will attract both builders and buyers. A more robust construction market benefits the local economy and creates a larger and more affluent tax base.

I am opposed to increased development costs for builders and in fact believe strongly that they should be reduced with the increased costs instead borne through property taxes as part of a transparent and democratic process.

It seems that Mayor and Council believe business people, builders, developers etc. pay and absorb increased fees and taxes....well the news is this belief is a fallacy. Any increase in fees or taxes are passed on the the consumer. There is simply no way to control what costs developers/builders pass on and what they absorb. Any contemplation of increasing development cost charges should be made with the full and clear understanding that any increase will be passed on to the purchasers.

Are you serious? I know costs for everything are going up but you do realize that housing is more unaffordable than ever. The rate of young adults staying with or moving back in with their parents is staggering. The fact that many are moving to Chilliwack or further is a very obvious indication that housing is too expense already. This will not only be yet another cost passed on to the buyer but also raise the price of all previously inhabited homes and rent prices for everyone. These prices have already been far outpacing inflation and wage increases. I know this helps the city's bottom line especially with this affecting all homes and therefore property taxes but people simply cannot afford this. Please do not make an already impossible situation for many worse. Remember, you represent the people as elected officials and the people simply can't afford more taxes

As a resident observing ongoing developments across local cities, I feel concerned about the pace of development in Abbotsford compared to neighbouring cities like Mission and Langley. These cities are flourishing with new neighborhoods and growth, demonstrating their proactive approaches to urban development. Abbotsford seems to be slacking by excessive regulations and slow approval processes, which are stifling potential growth.

For years even decades, areas like Clearbrook-Sumas have remained unchanged, while we witness our neighbors transform.

The increase in fees does not seem to be the solution if we continue to be perceived as not being development-friendly. This perception not only discourages potential developers but also affects our community’s economic growth and competitiveness.

Seems like once again Abbotsford is trying to stop development. Fees here are already higher than Chilliwack and these increases would put us almost double theirs. I know several contractors who have already moved out of town. Not only do they say the city is difficult and slow to deal with, but why would they want to pay double the fees? With affordability already an issue this is not the way to build more homes here.

I agree with one of the comments below; DCCs should be the actual cost of what is necessary. Let's stop taking the easy way out by raising prices every time something isn’t working and come up with other solutions. This is just making housing more unaffordable. The city needs to cut things out of the budget that aren’t necessary. Maybe don’t have a budget for each department that has to be spent by the end of the year so they get the same amount the following year. The goal should be to come in under budget for all departments and have it put to the places that might have needed a bit more that year. Also, the bike lanes that are being put up are a complete waste of money for the amount of use they get. They make sense in a city core where travelling by bike is a viable option, not in random neighborhoods.

Increase them! Developers should be paying their share for densification. They make enough money

I would prefer to see DCC's charged closer to the actual costs of doing the project. Why do the rest of the citizens of Abbotsford have to pay for a new development that is going in? Yes, this will increase the costs of new developments, but what is the benefit of subsidizing the costs? It's just borrowing against our children and grandchildren.
I would prefer to see no fees on the ACC side - and have the property taxes across the city take on the costs as they currently do.

More importantly than both of these things though - we need to fix the bloat that exists within the city. City workers complain that they are overworked - and though sometimes that may be true, it's largely because extra obstacles are put in place. Going back to the KISS principle - though would be a painful process, would pay MASSIVE dividends for the future.

Thats all fine and dandie,,, but who has to pay at the end of the day ,,,,, the buyer.
It just makes it that much more unaffordable for the home buyer. Especially the first time buyers that have a tough time , even saving up for that first down payment.

If developers and new buyers do not contribute more to these future costs (they do not pay the full costs), then the City will require future debt funding, paid for by existing property owners. That equates to future tax increases for current residents. Also, the City does not place enough money into reserves to fund current infrastructure replacement, so more future debt funding will be required. Debt must be repaid, with interest. Plan for the future, not for tomorrow only.