Kamloops council has adopted a targeted amendment to its development cost charges (DCCs), removing exemptions for not-for-profit rental housing, large residential floor areas and certain storage buildings after provincial review.

Council adopted Development Cost Charges Amendment Bylaw No. 48-105 on Aug. 11. The bylaw replaces an earlier amendment process after the provincial Inspector of Municipalities requested changes to proposed exemptions before approval. The Inspector approved the revised bylaw on July 27.

The amendment does not introduce new DCC rates or add infrastructure projects. A broader review of Kamloops’s DCC program—covering rates, growth forecasts, eligible capital work and other policy changes—is expected to return to council in 2027.

DCCs are fees charged on development to help pay for infrastructure needed because of growth. The City says its charges support growth-related transportation, water, sewer, drainage and parks work. Under provincial rules, DCC funds are held in separate reserve accounts and can be used for eligible capital costs.

Bylaw No. 48-105 repeals the City’s definition of “not-for-profit rental housing” and removes three exemptions from the existing DCC bylaw.

One removed provision had exempted qualifying not-for-profit rental housing, including supportive living housing, under the Local Government Act. Provincial guidance allows municipalities to reduce or waive DCCs for eligible types of housing, including not-for-profit rental and supportive housing, but does not require every local government to offer those reductions.

The amendment also eliminates a residential floor-area provision that set thresholds above which DCCs were not charged. Those thresholds were 400 square metres for each single- or two-family unit; 260 square metres for a low-density multi-family unit; 220 square metres for a medium-density multi-family unit; and 130 square metres for a high-density multi-family unit. City staff described the provision as effectively capping the DCC payable on residential development.

A third repealed exemption applied to accessory buildings used to store and maintain vehicles or equipment, provided the building had no more than one two-piece bathroom. The City says future applications will be assessed individually to determine whether a building connects to municipal services and whether DCCs apply.

The City’s July report said the amendment itself carried no new financial implications. The material does not provide a projected revenue figure from removing the not-for-profit housing exemption or a forecast of total DCC revenue under the current program.

Kamloops’s current DCC program is based on a 10-year plan through 2032. When it was adopted, the program included 73 infrastructure projects valued at an estimated $272 million. Current citywide charges vary by development type and location. The consolidated bylaw lists charges ranging from $54.87 per square metre for single-family residential development to $94.17 per square metre for low-density multi-family residential development outside the core area. Commercial, institutional and industrial building floor area have separate rates.

The larger update expected in 2027 could revisit growth projections, project lists, municipal assist factors and rates. Staff have also identified possible future options including reduced transportation charges in the core area, updated industrial rates, and projects in newly eligible categories such as fire stations, police facilities, solid-waste facilities and provincial highways.

Those items are not part of the bylaw council adopted in August, and no new rates or capital works were approved through Bylaw No. 48-105.

The City’s July report says developments with an application already in process may receive transition protection under provincial legislation when new DCC rates are adopted. Generally, a new rate would not apply if a building permit is issued within 12 months of adoption and a precursor application, such as a rezoning or development permit, was already underway when the bylaw was adopted.