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KELOWNA, B.C. – The Canadian Home Builders’ Association of the Central Okanagan (CHBA-CO) is applauding Kelowna City Council’s direction to explore the possibility of a temporary reduction in Development Cost Charges (DCCs) in response to the growing slowdown in housing construction.

Council voted to direct staff to look into a 25 per cent reduction in DCCs over a two-year period, a release explains.

This news comes after the CHBA-CO sounded the alarm over rising development costs for new homes as these charges take a bite out of the middle-income market.

“City staff presented a thoughtful and transparent analysis of the challenges facing housing in Kelowna,” said Cassidy deVeer, executive officer of CHBA-CO, in a statement. “They were clear — projects are sitting idle because they no longer pencil. That reality needs to be addressed.”

During the presentation, staff noted DCCs account for approximately three to five per cent of the cost of a home and emphasized reducing this cost could help marginal projects move forward. Staff also noted a sharp decline in new building permits.

The CHBA-CO explains Kelowna’s Housing Accelerator Fund target of 7,430 units is now at risk, with only 4,497 units achieved year-to-date.

“This is the issue in front of us,” said deVeer. “If projects aren’t viable today, they don’t move forward, and if nothing gets built, no DCCs are collected and no new tax base is created. This decision reflects that reality.

“Extending this beyond a one-year timeline is a significant benefit for project planning and feasibility,” added deVeer.
CHBA-CO also pointed to broader market conditions in B.C. that reinforce the urgency for action. The Canadian Home Builders’ Association recently released its , showing B.C.’s single-family market continues to decline, with a score of 5.8 out of 100 which is the lowest of all regions in Canada. The multi-family sector shows similarly weak conditions, with a score of 13.9 out of 100.

“These are the weakest builder confidence levels we’ve seen,” said deVeer. “Without action, the impact on future housing supply will be significant.”

CHBA-CO said it looks forward to working with the city as staff bring forward detailed recommendations and analysis.