Community Amenity Contribution (CAC)

A Community Amenity Contribution (CAC) is a negotiated contribution—either cash or in-kind facilities—that a developer provides to a local government in connection with a rezoning application. Under the Local Government Act, RSBC 2015, c. 1, municipalities may enter into agreements with developers to secure amenities such as parks, childcare facilities, or affordable housing. CAC policies and amounts vary materially by municipality; verify the specific policy applicable to your property with the relevant local government or a BC lawyer.

No. A Development Cost Charge (DCC) is a statutory levy imposed under Part 14 of the Local Government Act, RSBC 2015, c. 1, calculated by bylaw for infrastructure costs such as roads, water, and sewer systems. A CAC is a discretionary, negotiated contribution tied to rezoning and is not governed by the same statutory formula or rate structure. Verify the applicable charges for a specific development with the local government or a BC lawyer.

No. The Local Government Act, RSBC 2015, c. 1, grants municipalities the authority to enter into agreements for amenity contributions in connection with rezoning, but it does not prescribe rates, formulas, or mandatory amounts. Each municipality sets its own CAC policy—often based on land lift or a share of uplift value—so the calculation and expectations differ materially by jurisdiction. Verify the CAC policy for the specific municipality with the local planning department or a BC lawyer.

A CAC is typically negotiated during the rezoning application process, before a local government approves a change to the Official Community Plan or Zoning Bylaw. Under the Local Government Act, RSBC 2015, c. 1, the municipality and developer enter into a voluntary agreement; the CAC becomes a condition of rezoning approval. Verify the timing and procedural requirements for your specific project with the local planning department or a BC lawyer.

No. A CAC is a voluntary, negotiated agreement between a developer and a local government under the Local Government Act, RSBC 2015, c. 1. Because a rezoning is a discretionary decision, a municipality is not legally required to approve it, and a developer may choose not to proceed if the proposed CAC is unacceptable. Verify the negotiation framework and your rights with a BC lawyer before entering into a CAC agreement.

This depends on the terms of the specific agreement between the developer and the local government. The Local Government Act, RSBC 2015, c. 1, does not mandate refund provisions; they are a matter of contract negotiation. Review the CAC agreement carefully and verify refund, timing, and release conditions with a BC lawyer before executing.

Yes. A CAC may be provided in-kind, including on-site affordable housing, childcare facilities, park dedication, or other community amenities negotiated with the local government. The Local Government Act, RSBC 2015, c. 1, permits municipalities to enter into agreements for both cash and in-kind contributions. Verify the municipality's CAC policy and acceptable in-kind options with the local planning department or a BC lawyer.

This depends on whether the CAC agreement is registered as a charge, covenant, or statutory right of way under the Land Title Act, RSBC 1996, c. 250. Some municipalities register a Section 219 covenant or a Housing Agreement to secure future performance; others rely on contractual obligations that do not appear on title. Verify whether the CAC will be registered and review a current Certificate of Title with a BC lawyer or notary before completing a purchase.

Tax treatment of CAC payments is governed by federal tax law, not BC provincial statutes. Whether a CAC payment is deductible as a business expense or capitalized into land cost, and whether GST applies, depends on the structure of the agreement and the Canada Revenue Agency's interpretation. Verify the income tax and GST implications with a licensed tax professional or CPA before making a CAC payment.

Each BC municipality adopts its own CAC policy, typically published on its official website or available through the planning or development services department. The Local Government Act, RSBC 2015, c. 1, does not require a uniform provincial registry. Contact the relevant local government directly or consult a BC lawyer to obtain and interpret the applicable CAC policy for your project.