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The NDP government is making changes to development cost charges that builders say could help reduce the burden they face as material and labour costs continue to increase and the number of projects under construction drop.
Starting in 2026, builders will only have to pay 25 per cent of their fees to municipalities up front and will be able to defer the remaining 75 per cent for four years or until people move into the building.
The fees help cover the cost of infrastructure such as community centres, roads, sewers and parks.
The changes will also allow developers to use bonds instead of irrevocable letters of credit as financial guarantees, allowing them to preserve access to capital throughout the project.
Wendy McNeil, CEO of the Homebuilders Association Vancouver, said the changes will allow builders certainty when it comes to the cost of the project and the timeframe for making payments to municipalities.
“I think this is great news. This announcement, it really shows there is appetite and responsiveness to the industry’s concerns,” said McNeil.
She said it will also allow builders to invest in future projects instead of having a large portion of their capital tied up in a single project.
“It’s all about certainty, and that’s the biggest hurdle that the industry is facing, or was facing is that the different charges, different schedules and different tools really didn’t make it easy for builders to do business.”
A June report by the Canada Mortgage and Housing Corporation found B.C. housing starts fell from 53,118 units in April to 37,455 in May, a reduction of just under 30 per cent. Additionally, B.C.’s housing starts are over 4,000 units lower than they were at the same time last year.
Housing Minister Ravi Kahlon said Wednesday that the province has already done significant work to bring down the cost of housing and increase supply by placing restrictions on short-term rentals, spending on affordable housing, and upzoning near transit stations and in single-family neighbourhoods.
He acknowledged there is more to do to encourage construction, which is why the government is now making changes to development cost charges.
“It’s hard to move forward on projects because the costs were built in at a different price point. And so that means we have to innovate. We have to find new ways to ensure that we’re able to lower costs.”
Surrey Mayor Brenda Locke and Delta Mayor George Harvie joined Kahlon for the announcement, as did Anne McMullin, president of the Urban Development Institute.
All three said they have seen projects stall because developers can’t afford the costs placed on them before construction even begins.
Langley Township Mayor Eric Woodward said the changes are something municipalities have been pushing for.
“The municipalities were not able to do this until now and didn’t have the legislative authority to implement this themselves,” he said.
“At the moment, I see that they’re making a number of these rather obvious changes. I think we would like to see them focus on only the things that they can do, such as get construction costs down and help municipalities and the developers with financing costs.”
Chris Gardner, president of the Canadian Federation of Independent Business, said that while the changes to the development cost charges were a step in the right direction, they don’t fix other issues slowing the pace of housing construction.
He said the goal should ultimately be to have the senior government shoulders more of the cost when it comes to building infrastructure such as roads and sewers, which would reduce the burden on municipalities and allow them to lower development fees for builders.
“We need to look at how we take costs out of housing construction, the fees and taxes that the province and the municipalities levy on housing. That is a crucial element to getting buyers back into the market,” said Gardner.
“Right now we’ve got interest rates that are still higher than a lot of would like to see when they go apply for mortgages, a lot of economic uncertainty because of the economy as a whole that’s been compounded by the Trump tariffs and then the inability of the B.C. economy as a whole to really fire on all cylinders and produce strong private sector job growth.”
RelatedAs you drive through various communities at this time of the year, you can’t help but notice the massive colour displays provided by day lilies. From street median and roundabout plantings to massive drifts in park beds, day lilies have become today’s go-to perennials.
When I have questions about day lilies, the person I love to contact is Pam Erikson of Erikson’s Daylily Gardens in Langley, B.C. As a breeder, grower, judge and retailer, she is one of Canada’s leading day lily authorities. Erikson’s carries over 3,000 varieties of day lilies, as well as an incredible collection of hostas, drought-tolerant plants and fall bulbs.
“Why all this obsession with day lilies?” I asked. “Drought tolerance,” Erikson responded.
“With our changing climate, hot and cold extremes and long periods of summer drought, few other plants can tolerate these conditions and still perform beautifully,” she explained. Most of the North American varieties are hardy to zone 2, except for the more tender Florida bred varieties, which are mostly rated for zone 6, but after our severe cold spell two years ago, she no longer carries them.
Hemerocallis, commonly called day lilies, are some of the easiest perennials to grow. Because they tolerate a wide variety of soil conditions, all they need is well-draining soil, a little organic matter and slow-release fertilizer for a continuous feed throughout the summer.
Generally speaking, day lilies appreciate five to six hours of summer sun each day. Erikson surprised me by saying the dark red and purple varieties need a little shade during the hottest part of the day in order to maintain their deep, rich colours.
I asked about the trend of continuous blooming varieties, like Stella d’Oro. She pointed out that breeding that variety has made it one of the best, and by far, the most popular day lily today, with millions planted around the world. However, Erikson prefers Happy Returns, a slightly fragrant, softer yellow that also blooms continually and looks like a field of daffodils all summer.
I mentioned that knock-offs of Stella d’Oro don’t seem to have the staying power of the originals. Erikson pointed out that there are non-registered varieties on the market that are mass produced by tissue culture, but they do not have the same intensive breeding and testing to ensure their quality.
When she breeds a new variety, Erikson trials it for eight years before releasing it in order to ensure its long-term quality and viability. The American Hemerocallis Society, which is the North American day lily authority, has a website that will confirm if varieties are registered.
According to Erikson, some of the best day lily breeding in North America was done in the 1980s. Many of those varieties had more resilient, unique blooms and tended to have a longer blooming period. Big Spider was an example of a very different yellow day lily that had massive blooms over a four-week period.
She also mentioned that Bill Munson, often known as the American godfather of day lilies, warned that too much breeding could result in their extinction.
Erickson also pointed out the absolute drought tolerance of day lilies. In the absence of water and with extreme heat, they can die down completely, but when water returns, new leaves emerge, and they begin to flower all over again.
I asked her to name some of the best varieties. She said that was a tough question because she is passionate about so many. Canada 150 she said is one of the best dark reds with a darker eye. Rootin Tootin is another beautiful red, and a Canadian hybrid. Lemon Lace is a lovely ruffled, fragrant yellow with very large blooms. Strutter’s Ball, which Erikson thinks is magnificent, is a deep purple.
I asked her how to create the best display of day lilies for a home landscape. Erikson recommends a perennial border, where day lilies are blended in with other perennials, flowering shrubs and spring-blooming bulbs for a long and attractive showing. For an early display of colour, she likes to plant minor bulbs, crocus, narcissus and tulips around day lilies, and as the fall foliage begins to decline, the foliage of day lilies begins to grow and hide the unsightly leaves of fading bulbs.
Erikson particularly loves combining variegated weigelas with purple day lilies. PG hydrangeas, especially the more compact varieties, also make great companions for day lilies. Erikson is OK with underplanting trees with hemerocallis as long as the trees are open and not casting heavy shade. Most of all she loves growing them in pots. She enjoys moving them around and changing out the varieties as the seasons progress.
No wonder Erikson is the go-to horticulturist not only for day lilies but also for many other perennials and bulbs. Hemerocallis are playing an ever-increasing role in our home gardens, roadside plantings and parks.
This year, Erikson’s Daylily Gardens, located at 24642 51 Avenue, Langley, will close at the end of June and reopen in August for fall perennial and bulb sales. Please check online for current hours of operation.
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