Anyone wanting to build a carriage house on their property in Kelowna may have to pay — dearly.
An update to Development Cost Charges going to council Monday (Aug. 22) introduces a new category for carriage houses raising the current flat fee from $2,500 to between $23,000-$28,000. DCC’s are used to help pay for some city infrastructure and meet growth needs.
The practice (flat fee) was flagged by the province as an area that needed to be amended because it provided a specific land use subsidy which is not permitted, as any subsidy must be applied evenly for all land uses, according to the report.
It’s estimated that 30 per cent of single-family homes in Kelowna will be built with secondary suites or carriage houses. Secondary suites are often exempt from paying DCCs because their construction value is less than the $50,000 minimum required to trigger them. The update proposes suites are not assessed a DCC, as once a developer pays them for the base build, the secondary suite can be constructed with no further charges.
The DCC program was last updated in 2019, and the staff report notes construction costs have increased 20 per cent and land costs 40 per cent since then.