British Columbia is relaxing regulations on expected costs for home builders to stimulate project construction
go through Chuck Chiang
Housing Minister Ravi Kahlon said one of the biggest changes will provide home builders with a more flexible and extended payment schedule, so instead of paying development fees in advance, they will pay 25% in the permit approval, while they will pay 75% when the building is occupied.
The developers will have four more years instead of two years of payment charges, because current market conditions are stagnant in the province’s projects and therefore require changes to the rule as Kahlon said.
While some municipalities want to use the bank’s letter of credit as a commitment, this can limit the developers’ access to credit, the government will also change the scope of regulations to allow financial guarantees of bonds to be guaranteed on demand.
Caron said the changes in the rules could mean that the differences in certain housing projects are made due to the financial burden on builders by high construction costs and interest rates.
Anne McMullin, chairman of the Urban Development Institute, said the requirement to pay development fees in advance is becoming increasingly arduous for builders, especially as fees rise and earn income from capital expenditures.
“By transferring payments to occupancy, the provincial government is making more projects move forward,” she said in a press conference on Wednesday.
In June, Beau Jarvis, president of Vancouver-based Wesgroup Properties, said in an article on social media that the company had to lay off employees, reflecting the broader reality facing the industry, with housing projects nationwide being cancelled or delayed because they are no longer viable.
Jarvis said they are still shipping homes that people can’t afford.
“I’ll say it again – it’s a crisis of delivery costs,” he said on LinkedIn.
This is exactly the type of housing construction problems that the British Columbia government is trying to address, Caron said.
“This means housing will be faster and cheaper in our neighborhoods,” Caron said. “And these solutions may not sound as grand, but in a sense they will make a difference between projects that happen and projects that don’t happen.”
Visited 39 times today, 39 times
British Columbia Chuck Chiang House Building Supply Ravi Kahlon Region Canada News
Last modified: July 2, 2025
