Municipalities throughout B.C. will now have quicker access to financing to deliver capital projects, such as infrastructure or amenities, thanks to changes in provincial borrowing regulations.
The updated regulations respond to concerns raised by municipalities about the cost, complexity and risk of delays associated with implementing capital projects.
“Municipalities told us that outdated borrowing thresholds were slowing down their ability to deliver the infrastructure people count on,” said the Hon. Ravi Kahlon, BC's Minister of Housing and Municipal Affairs. “We have responded by expanding the borrowing powers for municipalities so they can act faster, reduce costs and deliver the services that support growing communities. These changes reflect today’s economic realities.”
The Province has amended the municipal liabilities regulation and the short-term capital borrowing regulation to give municipalities more flexibility to plan and finance infrastructure projects that support population growth and housing development. Municipalities can now borrow up to 10% of their annual revenue, without having to hold a public vote, saving time and costs. These changes will help municipalities deliver a wider range of essential infrastructure more efficiently.
“We are pleased to see these changes implemented in response to requests from BC local governments,” said Trish Mandewo, president, Union of B.C. Municipalities. “The amendments will help some local governments manage essential infrastructure more efficiently, ensuring public assets continue to meet the needs of communities facing climate change and population growth.”
Provincial law regulates how much money municipalities can borrow before requiring an elector approval process. The Province is now adjusting that amount to account for decades of inflation, giving municipalities a greater opportunity to make the investments needed to continue building British Columbia’s future.
Municipalities can borrow up to $150 per capita without elector approval, up from $50, when the term of the borrowing is less than five years (amendment to the short-term capital borrowing regulation). For larger amounts of debt or longer-term debt, municipalities can borrow twice as much without elector approval (increased from 5% to 10% of dependable revenue, through an amendment to municipal liabilities regulation).
To help local governments build housing people need, the Province has delivered a range of tools and funding. This includes:
the historic $1-billion Growing Communities Fund to support 188 local governments;
$51 million in grant-based funding to support activities or projects, such as updating housing needs reports, official community plans, and zoning bylaws; and
$25 million through the Local Government Development Approvals Program.
These new regulatory improvements build on that support by giving municipalities more flexibility to invest in infrastructure more efficiently and with greater confidence.
Quick Facts:
The amended municipal liabilities regulation and short-term capital borrowing regulation took effect on June 9, 2025.
The amendments apply to all 161 municipalities in B.C., except the City of Vancouver.
The City of Vancouver is governed by the Vancouver Charter, which provides different authorities and requirements related to short- and long-term borrowing.
In 2024, the local government financial review working group, comprised of staff from the Ministry of Housing and Municipal Affairs, Ministry of Finance and the Union of B.C. Municipalities (UBCM), reviewed the existing borrowing limits and recommended updating.
The revisions identified would assist communities in funding critical infrastructure more effectively.
Learn More:
Information about the Municipalities Liabilities Regulation can be found here: https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/254_2004
Information about the Short-Term Borrowing Limit Regulation can be found here: https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/368_2003
To learn about the steps the Province is taking to tackle the housing crisis and deliver affordable homes for British Columbians, visit: https://strongerbc.gov.bc.ca/housing/
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