Date: Tue, 9 Feb 2016 08:25:53 -0500
From: cryptik
Subject: Re: impact fees
I have gathered information on impact fees in the past. I do not seem to still have my old research in a convenient place. Let’s see what I can dig up right now instead.
Some of my favorite points are from this page: http://www.nchba.org/wp/legislative-news/why-not-impact-fees/
“The imposition of impact fees for schools or for any other purpose requires the approval of the General Assembly via local act and such permission has not been granted to those seeking similar approval in more than a decade.”
“Impact fees are unfair and regressive. Impact fees are paid, not by developers or home builders, but by the home buyer as a part of the purchase price of the new home. Accordingly, impact fees reduce the affordability of housing, especially for local and middle income families.”
“Impact fees are discriminatory. Infrastructure improvements, especially for the public schools, benefit everyone in the community and, therefore, should be paid for by the public at large.”
“Impact fees are multiplied over the period of the loan. The present value of an impact fee over a 30-year mortgage is more than three times the fee assessed. For a $3000 impact fee, over a 30-year mortgage, homebuyers will be paying more than $9000 for housing.”
Chatham County posted a document to the county’s website that discusses impact fees: http://www.chathamnc.org/Modules/ShowDocument.aspx?documentid=4359
Chatham County’s “Permit Fee Schedule” document seems to indicate that anyone wanting to build a single-family home on undeveloped land must pay a $3,500 impact fee, but if you knock down an existing home to build a new one, you don’t have to pay: http://www.chathamnc.org/modules/showdocument.aspx?documentid=745
In 2009, Chatham County hired a consultant who performed a study that told the county that they could INCREASE impact fees and rake in more money:
http://www.chathamjournal.com/weekly/news/local/chatham-public-hearing-about-increasing-impact-fee-90721.shtml
Impact fees disproportionately burden people with lower incomes:
http://www.impactfees.com/publications%20pdf/housing_affordability.pdf
More relevant information:
https://ncbilldrafting.files.wordpress.com/2007/08/authority-for-impact-fees-july-2005-intern-paper.doc
http://www.impactfees.com/publications%20pdf/sullivan.pdf
http://canons.sog.unc.edu/?p=7798