[rfc171]

Sorry to ask this question, what is an impact fee?

[Bogie Shooter]

Originally Posted by rfc171

Sorry to ask this question, what is an impact fee?

Impact fee
An impact fee is a fee that is imposed by a local government within the United States on a new or proposed development project to pay for all or a portion of the costs of providing public services to the new development. Impact fees are considered to be a charge on new development to help fund and pay for the construction or needed expansion of offsite capital improvements. These fees are usually implemented to help reduce the economic burden on local jurisdictions that are trying to deal with population growth within the area.Wikipedia

[Carla B]

An "impact fee" is called in "The Daily Sun" a "tax increase."

[RICH1]

Originally Posted by justjim

Now that the impact fees have been settled and increases capped at 12.5% a year do you you suppose the price of new homes in The Villages will go down in price? As I remembered the Village Developer offered a 40% increase.

Yes, the price of homes will decrease when the Interest Rate on a new home becomes 6 percent! Things should level out by then! How do people make it this far in life!

[Stu from NYC]

Originally Posted by Carla B

An "impact fee" is called in "The Daily Sun" a "tax increase."

Luckily our local paper is objective in their reporting.

If you believe that one have a bridge for sale.

[Juliebythesea]

Originally Posted by justjim

Now that the impact fees have been settled and increases capped at 12.5% a year do you you suppose the price of new homes in The Villages will go down in price? As I remembered the Village Developer offered a 40% increase.

Hahahahaha

[justjim]

Originally Posted by dewilson58

Have you seen the cost of materials???

Most believe the costs are temporary. Time will tell.

[dewilson58]

Originally Posted by justjim

Most believe the costs are temporary. Time will tell.

The Supply Chain is ramping back up & prices will drop, but no one is expecting pricing to return to pre_COVID prices.

[Villages Kahuna]

An impact fee is typically a one-time payment imposed by a local government on a property developer or builder. The fee is used to offset the financial impact a new development places on the public infrastructure. Public infrastructure includes roads, schools, parks, recreational facilities, water and sewerage, expanded police and fire service and maintenance of those types of facilities.

In The Villages the cost of building such infrastructure for use by residential homeowners is typically financed by the issuance of a municipal bond. In TV that bond is then divided equally among the homes built in an area and becomes an obligation of the homeowners to repay and pay interest and fees on their portion of the bond.

To the extent that the proceeds from the bond which is an obligation of the homeowners in an area aren’t sufficient for the construction of required broader non-residential roads and infrastructure, the local government can assess an impact fee on the Developer to pay for the broader “non-residential” infrastructure such as major roads, police and fire stations, schools, public maintenance facilities, etc.

It was an executive of tithe Developer’s company who is also a state representative who sponsored a state-wide bill to set limits on the amount of impact fees local governments can assess against developers. In the current situation, the Sumter County commissioners also rolled back a 25% property tax increase against ALL homeowners in Sumter County that would have paid for the broader infrastructure in the southern end of The Villages required by the Developer to continue to build homes and commercial real estate in that part of the county.

So at this point the property tax rollback and the bill limiting impact fees has resulted in a shortfall of funding for non-residential infrastructure that the Developer says is needed to continue development in the south end of The Villages and Sumter County.

The Developer is trying different ways to get Sumter County to pay for new infrastructure (with funding from increased property taxes on homeowners). The county commissioners have promised the homeowners in the county that they won’t tax them to pay for the infrastructure the Developer says is required.

Stay tuned for who’s going to pay for the unfunded cost of the required roads and infrastructure. The arguments and debate will be interesting. Whatever you do, don’t rely on the descriptions of the alternatives and who should assume increased obligations on what you read in The Daily Sun. The Developer owns the paper so all you’ll get is the Developer’s view of what’s needed and who should pay for it.

[eyc234]

Originally Posted by Carla B

An "impact fee" is called in "The Daily Sun" a "tax increase."

You say spaghetti sauce, I say gravy. They are taking money from the citizens to waste as government normally does.

[rogerk]

The impact most people are referring to is for roads. It can only be used for roads that are DIRECTLY related to the “impact” of the associated property development. County government can also assess impact fees to pay for parks, schools, water and wastewater, etc. Sumter County only has impact fees for roads!

The problem people have with the property tax increase that is related to roads was designed to support the industrial park and pave the way for other light industry. The roads for the new development in The Villages, ie most of the neighborhood roads, are built by the developer. The so called feeder roads and collector roads are paid for from the impact fee. They do NOT support the development of industrial parks, etc.

[richs631]

Prices in the villages will never go down. They sell over 200 houses a month. No other developer in the nation is even close

[J1ceasar]

Impact fees is what any tax is that is caused by a user in the local area . We have 50+ of them from fire fees to a road tax when a builder starts a new home or commercial building . That is a big one , some are annual , some one time

[Gmaf6]

Thanks to all the folks fleeing high tax States, it’s become a supply vs demand issue; not to mention the increase in costs for building materials.

[john352]

Originally Posted by justjim

Now that the impact fees have been settled and increases capped at 12.5% a year do you you suppose the price of new homes in The Villages will go down in price? As I remembered the Village Developer offered a 40% increase.

The Villages Daily Sun scared its readers with the phrase “75% increase in road impact fees” that was to take effect on June 28. The 75% road impact fee increase on a single-family home was a $2000 increase. The impact fee is paid by the home builder when the building permit is issued and is then added to the price of the home. Assuming that the home builder does not make a profit on the $2000 impact fee increase, the price of a $200,000 home increases by 1%. Assuming that the home buyer has a 3% 32-year mortgage, a $2000 increase results in an increase of $5 in monthly payments.