ImpactFees - Development Impact Fees 2008 Page: 1 Impact...

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Development Impact Fees 2008 Page: 1 Impact Fees [Rappa, John G. 2002. How Development Fees Affect Residential Development . OLR Research Report 2002-R- 0903. 6 pages. December 9, 2002] [Anonymous . 2006. Florida Task Force Studies Need for State Regulation of Impact Fees . Regulatory Barriers Clearinghouse. Washington, DC 200026. Breakthroughs . Volume 5, Issue 1. Jan 2006 “Impact Fees” or “Development Impact Fees” (DIFs) are one-time fees imposed by local governments on proposed development projects to defray some of the costs of constructing or improving off-site infrastructure (e.g., sewers, roads, parks, schools) needed to service the development. The concept of an impact fee or DIF originated in the 1970s in Florida and was further developed in California. The Florida legislature recently (i.e., 2005) enacted SB 360 making a number of significant changes to Florida's Growth Management laws and providing major funding for public infrastructure. The new law also creates the Florida Impact Fee Review Task Force whose responsibility it is to examine the administration of impact fees and recommend whether Florida needs to adopt specific enabling legislation. An impact fee is a charge levied on new homes to pay for the construction of off-site capital improvements that benefit that development. In contrast to other states, local government authority to assess impact fees in Florida derives from home rule authority and case law, rather than a state enabling statute. The Florida Constitution gives local government broad authority to provide fire protection, parks and recreation facilities, transportation facilities, schools, libraries, and water and sewer services. Courts Allow Fees but Set Limits As early as 1976, Florida courts have considered the legality of impact fees. The courts have consistently held that an impact fee is legal as long as the local ordinance contained certain characteristics. An impact fee is legal, for instance, if it is: Only applied to new development that requires an expansion of public facilities Proportionally related to the need Earmarked for capital facilities and not operating costs Used for facilities that benefit those who pay the fee Is a one-time charge, though collection may be spread over time. Theoretical and empirical studies show that impact fees increase housing production costs and that builders pass the increase along to their customers. These same studies cautiously suggest that the fees also increase the sale prices of existing homes, cause builders to concentrate on building higher priced homes, and reinforce racial and economic segregation. The caution stems from the lack of data needed to test the impact fee’s potential effects and the difficulty in identifying, isolating, and controlling the other factors that influence the way developers and
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This note was uploaded on 08/27/2011 for the course BCN 4023 taught by Professor Stroh during the Spring '11 term at University of Florida.

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ImpactFees - Development Impact Fees 2008 Page: 1 Impact...

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