Hendersonville adopts residential impact fees after months of debate; fees set at $6,000 (single-family) and $5,500 (multifamily)

HENDERSONVILLE — The Board of Mayor and Aldermen voted to adopt a residential impact-fee ordinance on second reading Feb. 10, setting the new charge at $6,000 per single-family home and $5,500 per multifamily unit. The fees—split two-thirds for roads and one-third for parks—take effect April 1, 2026, under an amended implementation schedule the board approved earlier in the meeting.

The ordinance had been under study for roughly two years; consultants recommended higher fees based on a TischlerBise study, and board members debated proportionality, legal defensibility and the effect on housing costs. Alderman Sassy, who led a months-long effort to refine the proposal, said the board needed a balance between developer contributions and taxpayer responsibility. "If the development is going to be impacting these roads and these parks, they should pay a majority of what they're impacting," he said during debate.

The board considered several amendments. Members first amended the effective date from July 1 to April 1 to give staff time to configure permit and finance systems. Alderman Sassy proposed applying 60% of the consultant recommendation; after further negotiation Alderman Sassy amended the proposal to the compromise rates the board adopted—$6,000 and $5,500—which passed the amendment 8–5. The final second-reading vote on the ordinance passed 12–1.

City staff and the city attorney stressed that the ordinance includes a credits program by which developers receive offsets for qualifying on-site or off-site improvements and an annual review process; a full formal study is required at least every five years. City Attorney Lance told the board higher fees raise greater legal risk on proportionality claims, which shaped some members’ votes.

Supporters said the measure will help fund road and park projects attributable to growth. Opponents warned that fees are typically passed on to homebuyers and counseled caution to avoid pricing residents out of the housing market. Alderman Collins reminded colleagues that credits and negotiated exactions remain an available tool to tailor outcomes on a case-by-case basis.

The ordinance package also included an accompanying credits ordinance (a substitute text the board adopted earlier in the meeting) and explicit language requiring periodic review. Staff said the fee amounts and credit formulas will be published alongside administrative procedures before April 1 so builders and planners can prepare.

The board’s action means the city now has a defined, residential-only impact-fee structure for roads and parks that staff must implement administratively and report on in future budget cycles.