Coquitlam releases draft ACC Program - What you need to know

Coquitlam's burgeoning City Centre

The City of Coquitlam is set to implement a new Amenity Cost Charge (ACC) Program. Under this new provincial mandate, ACCs will largely replace the Density Bonus and Community Amenity Contribution (CAC) programs previously used in Coquitlam to fund infrastructure and amenities required to support growth.

Why Are ACCs Being Introduced?

The introduction of ACCs follows Bill 46, which restructures and standardizes development financing programs across the province. Coquitlam’s new ACC program aligns with provincial requirements and will provide more predictability for property developers when paying municipal development fees. While the certainty and predictability are beneficial, the new program will offer less flexibility in the negotiation of those fees between the City and a developer, and will likely result in an increase in overall fee costs to be borne by a project.

What Will ACCs Fund?

Over the next 10 years, Coquitlam expects to collect $358 million in ACC revenue to support:

✔️ The Fraser Mills & Northeast Coquitlam Community Centres

✔️ New Parks & recreation amenities across the City

✔️ Expansion of library services and public spaces across the City

The majority of the costs for these items will be passed on to new development projects.

How Much Will ACCs Cost Developers?

Unlike the previous system, ACCs apply standardized rates based on density:

🏡 Low-Rise Residential will now pay $21,302 per unit

🏢 Mid-Rise Apartments will now pay $16,590 per unit or $21 per sq. ft.

🏙️ High-Rise Apartments will now pay $29,994 per unit or $39 per sq. ft.

For high-rise projects, these costs are comparable to existing Density Bonus rates, but more affordable medium-density housing will see a substantial increase—rising from $6 per sq. ft. to $21 per sq. ft. The fees for Townhouse product will almost triple, going from approximately $8000 per unit to $21,302 per door.

Draft fee rates

How Will This Impact Development?

While the city argues that ACCs are a small portion of total development costs, the reality is that they increase the financial burden on builders, particularly for mid-density housing like townhomes and mid-rise condos. This could lead to:

🚧 Higher housing prices as developers pass on costs

🏗️ Reduced project feasibility for some developments

📉 Potential slowdown in new housing supply, particularly of missing middle and more affordable housing types.

What’s Next?

📢 Public consultations will take place in March-April 2025

📜 City Council is expected to adopt the ACC bylaw by the end of June 2025.

🏗️ The program is set to launch later in 2025

For developers and stakeholders, now is the time to engage with the city and provide feedback. While ACCs promise a more predictable and transparent funding model, the increased costs—especially for mid-density projects- could stop development in Coquitlam in it's tracks.