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Home builders urge city to reconsider proposed impact fees, warn of higher housing and retail costs
Summary
The Home Builders Association of Greater Aiken-Augusta told North Augusta City Council that the consultant—stimate of about $5,100 in impact fees per house would be passed to buyers and could price some families out of new homes and deter retail development.
Tiffany Heitzman, executive director of the Home Builders Association of Greater Aiken-Augusta, told the City of North Augusta during the council—ommittee—orum that the consultant—stimate of roughly $5,100 in impact fees per house would be borne by homebuyers and could curb both housing and commercial development.
Heitzman said typical local development costs already include permit and review fees, performance and maintenance bonds, and building permits. "The proposed impact fees that y'all are proposing at approximately $5,100 per house is really passed down to the home buyer," she said, adding that the fee translated to an extra $13,000 to $15,000 over a 30-year mortgage at current rates.
She also gave examples for commercial projects, saying the proposed fees would add an estimated $187,000 to $281,000 for a new grocery store of 40,000 to 60,000 square feet and about $30,000 for a typical 6,000-square-foot sit-down restaurant. "So as we hear and I've heard a lot of you all say you want more to do here in your city," Heitzman said, "but this is gonna make it very challenging for not only retail and other commercial development, but also homes to be built."
Heitzman referenced national affordability data, saying "over 70% of US households in this country cannot afford a new home," and urged council to consider alternatives: "There are other alternatives to impact fees." She noted only a minority of South Carolina municipalities and counties have adopted impact fees.
Council members and staff acknowledged the comment and said the city will hold further study sessions and consider other options before any vote. Mayor Britton S. Williams (speaking later in the meeting) told Heitzman the council asked the consultant to "think through some other options" and that further study and additional readings would be likely before a final decision.
The comments were part of the meeting's public comment portion; council did not vote on impact fees at the meeting.
