Tuesday, September 18, 2012

Home construction and Impact Fees

Here's an idea that I'll bet builders have not thought of. Think they missed this one?

When a new home is built in Woodstock, the City has its hands out for fees, fees and more fees. One of the huge fees is the Impact Fee.

In addition there are the permits (and fees) required for Plan Review, Electrical, Plumbing, HVAC, fences, pools, decks and elevators (probably not too many homes in Woodstock have elevators), and the prized Certificate of Occupancy (CO).


What's the Impact Fee? Or, more accurately, what are the Impact Fees? These are the payments for Water Connection, Sewer Connection, Schools, Parks, Library, Streets, Police, and Fire & Rescue.

The 2012 Schedule for total Impact Fees looks like this, for Single-family Detached Dwellings:

2 Bedrooms $12,083.00
3 Bedrooms $20,777.00
4 Bedrooms, $24,201.00
5 Bedrooms or more, $24,201.00

Now, here is my hint for developers and builders. Build every home as a two-bedroom house, regardless of square footage. (If you build a one-bedroom house, is there no Impact Fee?)

Just add the $12,083 onto the price of your home (we know who really pays it) and then, after closing, come in and remodel the house into a four-bedroom house.

That would work, except that Woodstock has you beat on this one. Two employees in the Woodstock Community Development Department have told me that, when a house is remodeled and bedrooms are added, the difference in Impact Fees is payable.

At least one councilman, though, believes that Impact Fees are not payable if bedrooms are added.

Which way is it?

2 comments:

Maverick50 said...

Gus,
My thought on this, is a house has no impact. It uses no water/sewer, no roads, no library…..ect. The occupants are the impact. If the occupants already live in town there would be no change of impact, It’s a lateral move. A newborn is an impact. Now what!!

Gus said...

Mav, you're right. It's not the house that causes the impact, or use, of services. If DINKs (Double Income No Kids) live in a 5-bedroom house, why should they pay twice the Impact Fees?

It's a different story, when they start filling up the house with kids, who will need schools and library, etc.

All I need is for the high-enough city official to write to me and say that no one gets hit with penalties for not pulling permits or paying fees. Treat all the same.