Following is a letter to Burnaby residents from Mayor Mike Hurley
Over the next decade the federal government, in partnership with the Province, has committed more than $5 billion toward infrastructure investments in British Columbia.
Anything which potentially helps deliver more housing, improve affordability and invests in the infrastructure needed to support our growing community is welcome news. At the same time, many important questions remain unanswered which will decide how effective this investment will be.
Last week's commitment includes nearly $1.6 billion in federal funding, matched by the Province, for a total of up to $3.2 billion aimed at reducing development charges on multi-unit housing by up to 50% in priority communities. While also supporting housing-enabling infrastructure such as water, sewer and road improvements.
Additional funding has also been announced for health infrastructure and other community investments. While this is a significant investment, it will be spread over a 10-year period and across many of BC’s 161 municipalities. The total commitment of up to $1.2 billion to modernize and expand health infrastructure for example is still short of the funding required for Burnaby Hospital Phase 2 alone.
Meaning this health infrastructure will still need to be delivered through the $1.8 billion already approved by the provincial government, which we are requesting must be set aside for this critical project.
It also remains to be seen which of BC’s municipalities will be considered the “priority communities” which qualify for this funding. Burnaby has welcomed more than 120,000 new residents since 1996, increasing our population to over 300,000 with a further 100,000 residents projected by 2050.
Located at the heart of the Lower Mainland, we are one of the province's key transit-connected innovation and employment hubs, and would expect to be included in any program intended to support growing communities and accelerate housing delivery.
The key question
Ultimately, the key question is whether the infrastructure funding we are to receive equals, exceeds or falls short of the development charge revenue being forgone by municipalities. Development charges help pay for the roads, water, sewer and other infrastructure needed to support the density they are bringing.
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If governments fully replace that revenue, municipalities will be able to reduce charges without affecting infrastructure investment. If they do not, the cost would then have to fall on residents through increased taxes. Which certainly does not increase affordability. While reductions in developer charges would lead to improved project viability and increased housing supply, it is also unclear whether they would be directly reflected in lower sale prices and rents for residents.
Important details
The federal and provincial governments have presented this program around reducing development charges by up to 50 per cent for multi-unit housing, with savings of up to $40,000 per unit. The first question is what qualifies as "multi-unit housing." The term could potentially include everything from duplexes with secondary suites and multiplexes to townhouses and apartment buildings. That distinction matters because development charges vary significantly depending on the type of housing being built.
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It is also unclear whether the reduction would apply only to municipal Development Cost Charges (DCCs), whether it would also include Amenity Cost Charges (ACCs), or whether it extends to the broader range of growth-related charges collected by municipalities on behalf of Metro Vancouver, TransLink and School Districts.
The impact of the program could therefore look very different depending on how it is structured. For example, Burnaby's combined DCC and ACC charge for a low-density residential unit—a residential building containing no more than two primary dwelling units and any secondary suites—is $81,833, meaning a 50 per cent reduction would equal approximately $40,917.
If the reduction instead applies to the full range of development-related charges collected through the approval process, including those for Metro Vancouver, TransLink and School Districts, a 50 per cent reduction would equate to much higher than the $40,000 figure referenced in the announcement.
So funding below that amount would create a shortfall which would land on residents through increased taxes and utility fees.
By comparison, the City's combined DCC and ACC charge for a high-density residential unit—a multi-unit residential building where homes are accessed through shared hallways or corridors and common entrance facilities—is $38,841, meaning a 50 per cent reduction would equal approximately $19,420.
The announcement—there has not yet been any indication of an implementation timeline—follows Ontario's Development Charge Reduction Program, where municipalities receive infrastructure funding in exchange for reducing development charges by between 30 and 50 per cent. However, the feedback so far for that programme is municipalities have reported waiting months for key details.
Developer fees in Burnaby
Burnaby's approach has been guided by the principle that growth should help pay for growth. Developers benefiting from increased land values and additional density contribute toward the infrastructure and amenities needed to support it, rather than shifting the full cost onto existing taxpayers.
A central part of Burnaby’s growth framework has been our Community Benefit Bonus Policy, which let eligible multi-family projects in town centres seek extra density above base zoning on a voluntary basis in exchange for community benefits tied to social, cultural, recreational, environmental or housing needs.
Developers could provide these benefits directly on the site, on a nearby site, or, if that was not practical, pay cash instead based on the value of the extra development allowed.
Cash contributions went into two dedicated city-wide reserves, with 80% for community amenities and 20% for affordable housing. Council policy designation set the rules for how the reserve money could be spent, within the limits allowed by legislation.
Those funds could not be used for general purposes: spending was limited to eligible amenities and affordable housing, capital uses, and projects that delivered incremental benefits. It has been the responsible management of our City reserves and reserve funds that has helped Burnaby deliver the largest capital program in the city’s history while keeping property tax increases among the lowest in the region and remaining debt free.
That system changed significantly however following provincial housing legislation implemented in 2024. The Province expanded DCCs and created a new ACC framework. DCCs fund growth-related infrastructure such as roads, water, sewer, drainage and parks, while ACCs fund growth-related amenities including community centres, libraries, childcare facilities and public spaces.
Importantly, both tools are largely restricted to growth-related capital costs. They generally cannot be used to fund the renewal and replacement of existing infrastructure, a key distinction from the previous system.
In response, Burnaby introduced a dedicated Growth Infrastructure Levy to help fund the long-term renewal of aging infrastructure. It is an example of how changes to development financing can shift costs onto residents.
A positive step
When land use planning, infrastructure investment and housing policy are aligned across all orders of government, growth can be managed more efficiently and at lower cost. When they are not, those costs do not disappear—they show up as higher development charges, higher taxes, or both, and residents end up paying the price.
That is why this commitment has the potential to be a positive step which does not fall on taxpayers. That is, if it is a quick and simple process, avoiding costly delays.
But its success will most importantly depend on getting the details right in advance. Municipalities must be involved in designing the program, as local governments will play a central role in its delivery.
Recent experience with provincial zoning legislation has shown that housing policy does not work when local planning expertise is not part of the process. Let’s work together this time so this funding can make a real difference.
Local leadership & planning in the Lower Mainland—with Mayors Brad West & Nicole MacDonald
