Kelowna Needs to Go Bold on DCC Relief

Kelowna Council is considering temporary Development Cost Charge relief to kickstart stalled housing construction — and ICBA is urging them to go big.

In a letter to Mayor Tom Dyas and Council, ICBA President Chris Gardner expressed strong support for a temporary DCC reduction but pushed Council to go beyond the proposed 20 per cent cut to 50 per cent. The math is simple: DCC revenue is a function of both rate and volume. A bolder cut that actually gets projects moving will generate more revenue than a modest one applied to a dead market. You can't collect DCCs on homes that never get built.

The construction downturn is hitting the Okanagan hard. Twenty-three per cent of ICBA's B.C. contractor members report layoffs made or planned. Housing starts province-wide are projected to drop from 42,200 to around 30,000 this year. And yesterday, Metro Vancouver's Regional District Board voted to dramatically roll back its own regional DCCs — setting a clear precedent.

The industry wants to build in Kelowna. Council should give us the conditions to do it. Read our letter HERE.