Community Amenity Contribution (CAC)

A Community Amenity Contribution (CAC) is a cash or in-kind contribution negotiated between a developer and a local government in connection with a rezoning application. The contribution is used to fund public amenities such as parks, childcare facilities, libraries, or affordable housing units that help offset the impact of increased density. CACs are not provincially standardized and are instead governed by each municipality's own CAC policy, which means amounts and eligible amenities vary materially from one jurisdiction to another in BC.

The authority for BC local governments to collect CACs flows primarily from the Local Government Act (RSBC 2015, c. 1), which grants municipalities broad powers in connection with land use planning and rezoning. Section 482 of the Local Government Act specifically enables local governments to enter into housing agreements, and broader zoning and development powers support CAC negotiations as a condition of rezoning approval. The Vancouver Charter (SBC 1953, c. 55) provides a parallel authority for the City of Vancouver specifically.

CACs in BC can arise either through a municipality's established rate-based policy (sometimes called a CAC schedule or formula) or through ad hoc negotiation tied to a specific rezoning application, depending on the local government's approach. Some municipalities, such as the City of Vancouver, have adopted structured CAC policies with defined rates per square foot, while others negotiate contributions individually. Because there is no single provincial statute mandating a uniform CAC structure, buyers and sellers should review the specific municipality's CAC policy for any subject property.

Yes, a CAC obligation is typically a cost borne by the developer as part of the rezoning process, and developers commonly factor that cost into the pricing of the resulting lots or units. While the CAC itself is not directly paid by a retail buyer, it can influence the price at which a developer brings a project to market. Buyers of pre-sale or newly built homes should review the disclosure statement required under the Real Estate Development Marketing Act (SBC 2004, c. 41) to understand any contributions that may have shaped project costs.

A CAC is negotiated between a developer and a local government at the rezoning stage and does not itself create a separate PTT obligation for a subsequent buyer. PTT under the Property Transfer Tax Act is calculated based on the fair market value of the property at the time of transfer, applying the standard BC tiers of 1% on the first $200,000, 2% on the portion from $200,000 to $2,000,000, 3% on the portion from $2,000,000 to $3,000,000, and a further 2% on the residential portion above $3,000,000. Buyers should consult the BC Ministry of Finance or a tax professional for guidance on available exemptions, such as the Newly Built Home Exemption (up to $1,100,000 fair market value) or the First-Time Home Buyers' exemption (up to $835,000 fair market value).

CAC agreements are typically registered or referenced as legal agreements under Section 219 of the Land Title Act (RSBC 1996, c. 250) or as housing agreements under Section 482 of the Local Government Act, which means they may appear as charges or covenants on a property's title in BC. A licensee acting for a buyer has a duty under the Real Estate Services Act (SBC 2004, c. 42) and BCFSA requirements to recommend that clients conduct a thorough title search through BC Land Title and Survey Authority records. Buyers should review all registered charges to understand whether any ongoing CAC-related obligations attach to the land.

CAC policies vary significantly across Metro Vancouver municipalities: for example, the City of Vancouver has historically used negotiated CACs with substantial per-square-foot rates tied to the uplift in land value created by rezoning, while other municipalities such as Burnaby or Surrey may use different rate schedules or project-specific negotiation frameworks. Because the Local Government Act gives each municipality discretion to set its own approach, there is no region-wide standard rate or formula in Metro Vancouver. Developers and their advisors must review the specific CAC or density bonus policy of the municipality where a project is located.

The BCFSA, which regulates real estate licensees in BC under the Real Estate Services Act, does not directly regulate or administer CAC policies, as those are matters of local government planning law. However, BCFSA's standards of conduct require licensees to be knowledgeable about factors that materially affect a property's value or development potential, which can include outstanding CAC obligations or rezoning conditions. A licensee who becomes aware that a CAC agreement is registered on title or affects a development project should disclose that information to their client in accordance with RESA duties.

Yes, BC local governments may accept in-kind contributions in satisfaction of a CAC, including the provision of affordable housing units, childcare spaces, parkland dedication, or the construction of community facilities, rather than a cash payment. The terms of any in-kind contribution are typically set out in a legal agreement registered against title, such as a housing agreement under Section 482 of the Local Government Act. The specific amenities eligible for in-kind CAC credit depend entirely on the local government's CAC policy and the negotiated terms of the rezoning approval.

Once a strata plan is deposited and the strata corporation is constituted under the Strata Property Act (SBC 1998, c. 43), the strata corporation itself is generally not responsible for CAC obligations that were part of the developer's rezoning agreement, as those obligations typically run with the developer or the land prior to subdivision. However, if a Section 219 covenant or housing agreement registered on title under the Local Government Act imposes ongoing obligations — such as maintaining affordable rental units within the strata — those covenants bind successor owners and the strata corporation where the covenant runs with the land. Strata councils and prospective buyers should review all charges on title and the Form B Information Certificate to identify any such encumbrances.