Real Estate Slowdown Causes Impact Fee Backlash

With the real estate market in the doldrums, developers are pressuring local government officials in California to cut impact fees. Will fee cuts spur new development? Maybe, writes Bill Fulton.

"Development projects that made economic sense a year or two ago – even with high impact fees – don't 'pencil' now because interest rates have gone up and prices have stagnated or even dropped. In many cases, the dreams of both developers and cities are now on hold.

Dreams that might move forward if fees were cut from, oh, $100,000 per unit to $80,000, or $80,000 to $40,000. At least that's what developers say, and that's what cities think. We've heard lots of rumblings around here about cities cutting fees on individual projects and considering widespread fee cuts across the board."

Thanks to Paul Shigley

Full Story: California Planning & Development Report

Comments

Prepare for the AICP* Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $245
AICP CTP Storefont Display

The first online AICP* CTP exam prep class

Are you ready to take the AICP* Certified Transportation Planner exam?
Priced at $245 for May exam!
Wood necklace with city map

City Necklaces

These sweet pendants are engraved on a cedar charm with a mini map of selected cities. The perfect gift for friends and family or yourself!
$28.00

City Coasters

Hand-drawn engraved maps of your favorite neighborhoods are divided up across 4 coasters making each one unique.
$36.00