Impact Fees

Impact Fees

Impact fees shift the cost burden to home buyers and renters, jeopardizing housing affordability. NAHB’s State and Local Issues Fund has helped HBAs develop innovative alternatives to impact fees, evaluate voter sentiment, and increase advocacy efforts.

Proffer System in Virginia

Home Builders Association of Virginia (HBAV)

A recent bill signed into law in Virginia significantly changed the proffer system. HBAV supported the bill’s passage and believes that once local governments implement the legislation, affordable housing production will increase in high-growth regions of the state. SLIF funds will help the HBA hire consultants who can help implement the measure and communicate the update to builders in the state.

Estimated project cost: $75,000

Funding request: $20,000

Preempt Linkage Fees

Texas Association of Home Builders

City officials in Austin want to implement a municipal linkage fee on commercial and multifamily construction projects to generate funds for subsidized housing. However, builders in the state say the fee would increase the cost of housing for all, including low-income renters. And if one city in Texas implements the fee, other municipalities may follow. In response, the HBA requested SLIF to support grassroots mobilization efforts, secure expert witnesses to testify during Capitol committee hearings and conduct research on the issue.

Estimated project cost: $100,000

Funding request: $20,000

Vehicle Miles Traveled (VMT) Regional Mitigation

BIA Bay Area (Concord, Calif.)

The latest California Environmental Quality Analysis mandates that new residential development projects must use a Vehicle Miles Traveled (VMT) matrix to evaluate a project’s transportation impact. Under VMT, a developer must meet specific numeric VMT reduction thresholds. For example, developers can achieve reduction thresholds by changing the type and density of the homes or adding transit, carpool or bicycle features. In response, the BIA proposes another option for meeting the VMT threshold: the yet-to-be-developed regional mitigation fee program. The concept allows developers to pay a regional mitigation fee or participate in a mitigation fee bank if they cannot reduce VMT on site. To support this proposal, SLIF funds will pay for technical analysis of legal, efficacy, cost, equity and governance surrounding the adoption of a regional VMT mitigation policy.

Estimated project cost: $35,000

Funding request: $20,000

Sales Tax Increase to Support School Improvements

Buildings Association of Northern Nevada (BANN) (Reno, Nev.)

The state legislature passed a bill to create a committee to evaluate local school construction needs. The committee found that the Reno/Sparks area needed a significant investment in capital revitalization and building new schools. As a solution, the committee recommended asking voters through a ballot question to fund school improvements with a 0.54% sales tax increase. However, influential community leaders call for builders to shoulder the burden through impact fees. SLIF would help the BA contribute to a broader coalition-led campaign supporting the ballot measure.

Estimated project cost: $1.4 million

Funding request: $20,000

Ballot result: The ballot measure passed with 57% voting in support of the sales tax increase.