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Volume 68, No. 18

190/2025

The British Columbia Gazette,

Part II

November 4, 2025

B.C. Reg. 190/2025 , deposited October 27, 2025, under the SOUTH COAST BRITISH COLUMBIA TRANSPORTATION AUTHORITY ACT [section 34.21]. Ministerial Order M327/2025, dated October 27, 2025.

I, Mike Farnworth, Minister of Transportation and Transit, order that, effective January 1, 2026, the Development Cost Charge Regulation, B.C. Reg. 114/2018, is amended as set out in the attached Schedule.

— M. FARNWORTH, Minister of Transportation and Transit .

Schedule

Section 1 of the Development Cost Charge Regulation, B.C. Reg. 114/2018, is amended by adding the following definition:

"index date" , in relation to a development cost charge, means the date of the subdivision approval or issuance of a building permit to which the charge relates.

Section 5 is repealed and the following substituted:

Payment of development cost charge

5 A developer who elects to pay a development cost charge in instalments must pay

(a) 1/4 of the charge on the index date, and

(

b) the balance of the charge by the earlier of

(

i) the date 4 years after the index date, and

(ii) if occupancy permits are required, under the bylaws of a local government, in relation to the development, the date that is 15 business days after the date on which

(

A) all of the required occupancy permits have been issued, and

(

B) the local government gives written notice to the developer that the conditions, if any, in those permits have been satisfied and payment of the balance of the charge is due.

Section 8 is repealed and the following substituted:

Surety for payment of development cost charge

(1) A developer who elects to pay a development cost charge in instalments must, on the index date for the charge, deposit with the authority a surety in the form of

(

a) an on-demand surety bond of an insurer that has a business authorization issued under the Financial Institutions Act ,

(

b) an irrevocable letter of credit from

(

i) a bank, or

(ii) a credit union or trust company that has a business authorization issued under the Financial Institutions Act , or

(

c) a security duly assigned.

(2) Subject to subsection (4), the authority may decline to accept the deposit of a surety under subsection (1) if the authority is not satisfied that, on default, the balance of the development cost charge will be recoverable.

(3) For certainty, subsection (2) does not authorize the authority to require or prohibit deposit of a form of surety described in subsection (1) (a), (

b) or (c).

(4) Subsection (2) does not apply in relation to an on-demand surety bond for a development cost charge if the following criteria are met:

(

a) the insurer who issues the bond has one of the following credits ratings:

(

i) a rating of at least A- from AM Best;

(ii) a rating of at least A+ from Fitch Ratings;

(iii) a rating of at least A1 from Moody’s;

(iv) a rating of at least A (high) from Morningstar DBRS;

(

v) a rating of at least A+ from S&P Global Ratings;

(

b) the bond provides the following:

(

i) the insurer must pay the authority the balance of the charge within 15 business days after the authority demands payment from the insurer in accordance with subparagraph (ii);

(ii) a demand referred to in subsection (

i) must be made in writing and must include

(

A) a statement that the authority has determined that the developer has failed to pay the balance of the charge in accordance with

section 5 (b), and

(

B) the balance of the charge;

(iii) a payment referred to in subparagraph (

i) must be made despite any objection by the developer and the insurer may not assert any defence or other grounds for not making the payment;

(iv) the insurer may not terminate its obligations under the bond unless

(

A) the insurer gives written notice to the authority and the developer at least 90 days before the date on which the insurer intends to terminate its obligations, and

(

B) the developer deposits another surety in accordance with this

section at least 30 days before the date on which the insurer intends to terminate its obligations.

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