Market Update: City of Vancouver Adjusts DCL & CAC Rates
Next week the City of Vancouver will consider recommendations to revise DCL and CAC rates. This comes following a decision earlier this year to allow increases to CAC (Community Amenity Contribution) target rates that did not have an inflation mechanism similar to Development Cost Levies (DCL’s – which allowed inflation starting back in 2009). The intent of the increase rates is to keep revenues in line with inflation in property values and construction costs.
DCL Rate Adjustments
The City currently has a City-wide DCL District (which accounts for the majority of land area and development in the City). The proposed 4.6% annual inflationary rate adjustment would result in the following rate changes:
- $0.60 per SF increase for higher density residential (>1.2 FSR) and commercial developments;
- $0.20 per SF increase for industrial development; and,
- $0.14 per SF increase for lower density residential (≤1.2 FSR) development.
- For residential and commercial development over 1.20 FSR, the DCL rate equates to $13.91 per SF
DCL Target Rate Adjustments
For CAC Targets, the proposed inflationary increase includes a one-time catch-up for inflation not captured since target rates were first established. In the case of Southeast False Creek, the adjustment extends back to 2007 while in Little Mountain Adjacent, Norquay and Cambie the adjustment extends back to 2013, and in Marpole the adjustment dates back to 2014. The magnitude of the rate increase which includes the one-time rate catch-up ranges from 8% in Marpole, 11% in Cambie Corridor, Norquay and Little Mountain Adjacent, and 25% in Southeast False Creek ( as previously noted, the % increase is much higher in areas where the catch-up period is longer).
The changes come into effect September 30th, 2016.