Panama City discusses impact fees for affordable housing developments

The City of Panama City held a meeting on July 12, 2025, focusing on the proposed transportation impact fees for new developments, particularly single-family homes and multi-family units. The discussions highlighted the need for a balanced approach to encourage affordable housing while ensuring that the city can manage its infrastructure needs.

One of the key points raised was the comparison of Panama City's proposed fees to those of neighboring municipalities, such as Callaway, which established its transportation impact fee in February 2008 at approximately $3,000 for single-family homes. The meeting participants expressed concerns that Panama City's fees, which are among the highest in Northwest Florida, could deter new development and economic growth.

The proposed ordinance includes exemptions for certain types of housing. For instance, homes under 2,400 square feet would not incur impact fees, and there are provisions for the State Housing Initiatives Partnership (SHIP) program. However, it was noted that non-SHIP affordable or workforce housing would be subject to the full fee, raising concerns about the financial burden on developers aiming to build affordable units.

Participants discussed the importance of creating incentives for builders to develop in lower-income areas, particularly in Census Tracts 16 and 17, where affordable housing is critically needed. Suggestions were made to extend exemptions or waivers to projects that aim to provide affordable housing without federal funding.

The conversation also touched on the definition of affordable housing, which is based on the percentage of median household income. Many residents in Panama City earn between $30,000 and $50,000, which complicates the affordability of new housing developments. The need for a clear and reasonable fee structure was emphasized to ensure that development remains viable and competitive.

In conclusion, the meeting underscored the city's challenge of balancing infrastructure funding through impact fees while promoting affordable housing development. The discussions will likely influence future policy decisions as the city seeks to attract new residents and businesses while addressing the needs of its current population.