Financing Growth
Please note that in light of Provincial changes to development and land use legislation, the City is in the process of developing a new, comprehensive Financing Growth Strategy. This strategy is anticipated to contain a combination of Development Cost Charges (DCCs), Amenity Cost Charges (ACCs), Inclusionary Housing, and density bonus, and is expected to be released in 2025. Those with an interest in development in New Westminster should continue to monitor this page for more information.
Recently, Council endorsed the Interim Density Bonus Policy, which is intended to help the City transition from a negotiated amenity process towards fixed rates while the new Financing Growth work is progressed.
In November 2023, the Province of British Columbia (Province) introduced new legislation to support local governments in an effort to build more affordable housing, by streamlining development processes to reduce development review times. In addition to the new legislation, to support the processes in providing additional housing (Bill 44 – Small-scale multi-unit housing, and Bill 47 – Transit-oriented development areas), new development financing tools (Bill 46) were also introduced to support the anticipated growth.
Similar to DCCs, ACCs may be established by a municipality (under Section 570.2 of the Local Government Act), which are charges levied on new development (i.e., levied at the subdivision, or building permit stage) to assist in funding the cost of new infrastructure and facility upgrades that are outside of the DCC bylaw - examples include, but are not limited to, community centres, libraries, and daycares. The City is currently developing an ACC Bylaw, in addition to updating the DCC Bylaw.
More information on the City's proposed updates to the DCC Bylaw, and the development of an ACC Bylaw can be found here.
Density Bonusing
The Local Government Act allows municipalities in British Columbia to permit bonus density in their zoning in exchange for the provision of amenities or affordable housing. This means that in designated zones, a developer can build to higher density if a community amenity contribution is provided to the municipality.In some zoning districts, land can be developed to a higher density if the amenities specified in the zone are provided. Only development projects in density bonus zones will be eligible for density bonusing. In New Westminster, Density Bonus Amenity Zoning has been rolled out, to date, in two phases.
Phase 1:
Phase 1 was adopted in 2010 and applies to townhouses and low rise multiple dwellings districts. The following zones contain bonus density provisions: RT-2, RT-2A, RT-2B, RT-2C, RM-1, RM-1A, RM-1B, RM-2, RM-2A, RMW-2, RMW-2A and RM-5A.Phase 2:
Phase 2 was adopted by Council on September 16, 2014, and applies to high density residential and mixed-use zones in the Downtown area.Council has determined that the amenity contributions collected from Density Bonus Amenity Zoning will be allocated as follows: 30% towards affordable housing, 10% towards childcare 10% towards public art, and 50% towards general amenities (i.e., civic facilities, park space, public art, etc.).
DENSITY BONUS RATES
On June 12, 2017, Council directed staff to revise the rates for the City of New Westminster’s Density Bonus Program. The new rates came into effect on January 1, 2018. The new rates are summarized in the table below:
Housing Form
Location
Contribution Per Area Above Base Density
Townhouse
Mainland
$120 / sq. ft.
Queensborough
$120 / sq. ft.
Downtown
$90 / sq. ft.
Apartment
(Six Storeys or Less)
Mainland
$120 / sq. ft.
Queensborough
$65 / sq. ft.
Downtown
$90 / sq. ft.
Apartment
(More Than 6 Storeys)
Downtown
$50 / sq. ft.
RESOURCES- Frequently Asked Questions (FAQ)
- Existing Density Bonus Amenity Zoning Map (Phase 1)
- Existing Density Bonus Amenity Zoning Map (Phase 2)
- Density Bonus Amenity Zoning Council Policy (Phase 2)
- Density Bonus Amenity Zoning Phase 2 Council Report (7/7/2014)
- Density Bonus Amenity Zoning Phase 2 Public Consultation Boards
- Density Bonus Rates Update Council Report (6/12/2017)
Voluntary Amenity Contributions (VACs)
Some applicants requesting zoning amendments or development variance permits offer to make a voluntary amenity contribution as part of their development proposal. These contributions can be actual amenities, or cash towards amenities such as community facilities, public art, heritage restoration and childcare space.New Westminster accepts voluntary amenity contributions as part of development proposals requesting an increase in development rights (e.g. additional density, land use changes, variances resulting in a substantial increase in floorspace that cannot be achieved under existing zoning). The amenity contributions are intended to help fund the capital investments required to accommodate a growing population and economy. This approach is based on financial analysis to determine whether the change in zoning increases the value of the subject site and, if so, what portion of this increase in land value should be available to fund community amenities.
The City began using this approach in May 2005 and has secured significant contributions toward parks, transportation, and public art, and other amenities and community benefits. This tool requires site-by-site negotiations with developers, an approach that is well suited to large, complex projects but is cumbersome for small projects and is not applicable at all to projects that do not require rezoning.
Development Cost Charges (DCCs)
DCCs are charges levied on new development to assist in funding the cost of upgrading or providing transportation, drainage, water and sanitary infrastructure as well as developing parkland needed to support new development. DCCs are collected prior to issuance of a building permit.Under Section 559 of the Local Government Act, a municipality can establish development cost charges (DCCs), which are charges levied on new development to assist in funding the cost of upgrading or providing infrastructure services and acquiring and developing parkland needed to support new development. DCCs can be collected to help pay for transportation, drainage, water and sanitary infrastructure, as well as parkland acquisition and development.
The City of New Westminster has collected DCCs on developments in the Queensborough area since 1995. In 2005 the City expanded the DCC program to include charges for the Mainland. DCCs are collected from all development that imposes a new capital cost burden on the municipality.
The City of New Westminster last completed a comprehensive major update in 2022 for the transportation, water, sanitary, and drainage components. The update focused on project cost estimates and new infrastructure to support development growth. The City completed an inflationary update in 2024 which has an effective date of August 1, 2024.
DCC Bylaw No. 8327, 2022, consolidated with revisions from DCC Bylaw No. 8456, 2024.
In November 2023, the Province of British Columbia (Province) introduced new legislation to support local governments in an effort to build more affordable housing, by streamlining development processes to reduce development review times. In addition to the new legislation, to support the processes in providing additional housing (Bill 44 – Small-scale multi-unit housing, and Bill 47 – Transit-oriented development areas), new development financing tools (Bill 46) were also introduced to support the anticipated growth.
Specific to DCCs, eligible categories now also include fire protection facilities (e.g., fire halls), police facilities, and solid waste and recycling facilities. The City is currently updating the DCC Bylaw, along with developing an ACC Bylaw.
More information on the City's proposed updates to the DCC Bylaw, and the development of an ACC Bylaw can be found here.
GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT (GVS&DD) DEVELOPMENT COST CHARGES
The City collects Greater Vancouver Development Cost Charges on behalf of Metro Vancouver. These funds are used to pay for regional sanitary sewer and drainage works. GVS&DD Development Cost Charges apply to all new development and are collected prior to issuance of a building permit.
More information on GVS & DD Development Cost Charges
greater vancouver Water district (GVWD) Development Cost Charge
Effective April 28, 2023, Metro Vancouver established a new water Development Cost Charge. These funds are used to pay for water facilities. Development Cost Charges apply to all new development and are collected prior to issuance of a building permit.
More information on GVWD Development Cost Charge
Greater / Metro Vancouver Parkland Acquisition Development cost Charges
The City collects Greater Vancouver development cost charges on behalf of Metro Vancouver. Effective January 1, 2025, Metro Vancouver established a new regional parkland acquisition charge. These funds are used to pay for acquisition of parkland throughout the Greater Vancouver region. Development Cost Charges apply to all new development and are collected prior to issuance of a building permit.
More information on Parkland Acquisition Development Cost Charges
Regional Transportation Development Cost Charges
The City collects the Regional Transportation Development Cost Charges (RTDCCs) on behalf of TransLink. The RTDCCs were introduced in 2018 and will be used to pay for improvements to the regional transportation system. These charges apply to all new developments and are collected prior to issuance of a building permit.
Click here for more information on the Regional Transportation DCCs
As a condition of subdivision approval, five percent of the development site must be dedicated for use as parkland. This contribution could be cash in lieu of land dedication. Cash contributions are deposited in a reserve fund for future parkland acquisition. Parkland dedication is required from residential subdivisions of four or more lots.
On behalf of New Westminster School District No. 40, the City collects school site acquisition charges. These funds are used to purchase new school sites, or land to add to existing school facilities. All new residential development pays SSACs. Click here to view the School District's Capital Bylaw, which includes the current fee schedule.
These agreements between the City and a development applicant ensure that water, sewer, electrical, transportation (e.g. crossings, curbs, sidewalks) infrastructure within and adjacent to the development site provided or improved to meet current City standards. Works and Services Agreements are required for all new development.
Click here for more information on Works and Services Agreements.