Who pays? It’s the age-old question… And it’s nowhere as important — for this newsletter, that is — when it comes to city finances.
What’s happening: Metro Vancouver recently increased the price of development cost charges on new construction as a way to pay for infrastructure connected to new buildings, such as schools, water infrastructure and more. But these development charges also raise the cost of building new housing, which has spillover effects, like increasing the cost that is passed down to new residents. You can see how this might be a problem when the cost of building new homes continues to rise…
The impact: The new fee raises the charges by 255 percent. For example, the cost to the developer on a townhouse in would rise from $8,679 to $30,861 over the next three years, according to the Vancouver Sun, though this varies by jurisdiction.
