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Homebuilders would face $10K in impact fees - David D - 03-14-2006
Did anyone see this article in the Sunday HTH? (I pretty sure it is okay to c&p this article because it is not being reproduce for commercial purposes - HTH copyrights statement)
Homebuilders would face $10K in impact fees
by Bobby Command
Stephens Media Group
Anyone building a home in Hawaii County would pay a fee of about $10,000 to cover the impact he'd have on roads, parks, fire, police, trash and sewers.
That impact fee would be collected when the person building the home -- big developer or single lot owner -- received a building permit.
Some 40 residents who participated in a workshop Wednesday were in complete agreement that such a fee is necessary. However, they struggled with how the money would be distributed.
Duncan Associates, an impact fee and infrastructure financing consulting firm from Austin, Texas, has been hired by the county to draft both an impact fee law and the infrastructure and needs assessment necessary to prove that such a law is necessary.
County planners hope to present the study and proposed law to the County Council by July. The council, which has supported the idea of impact fees, would have about four months to debate and pass the law before a new council is sworn in following the November elections.
The impact fee law would replace the current fair-share assessment that has been largely unsuccessful in raising the money needed to build infrastructure for the ever-growing population.
Fair-share assessments have been called unfair at best and illegal at worst since they are collected during rezoning and have no set area that they benefit. This has allowed properties already zoned to skip the fees no matter how many homes are built, and often money collected for impacts on one side of the island is spent on the other side.
The ordinance would create a one-time fee to be collected for each home built, and the money designated for specific things as identified by the needs assessment in a set "benefit districts."
To start, Duncan Associates suggested an east-west split. However, various other divisions were suggested by the focus groups, including the current political districts followed by the Hawaii County Council, or four to five areas based on combinations of current political districts.
Jim Duncan of Duncan Associates said a key part of the proposed law would be whether to charge an impact fee to those who build on undeveloped lots that already carry proper zoning.
Duncan estimated there are 64,220 vacant residential lots on the Big Island, nearly 1,600 more than the total number of homes that existed at the time of the last census.
In addition, only 9,123 of those lots are owned by someone with a Big Island address. The vast majority of them -- 44,175 -- are owned by someone who doesn't live on the Big Island.
Some in the focus groups felt that there should be some relief for low-income owners who wish to build a single residence on their property.
Others felt that a grace period of two to five years might separate bona fide future homeowners from speculators.
But most agreed it was not unfair for those who wished to build a home on the Big Island to pay for the impacts they create by their new residence.
There was a little disagreement on progressive fees -- the bigger the home, the bigger the fee. However, Duncan said the difference between what is paid by an affluent person and a more modest homeowner is negligible, likely about $1,000 and no more than twice as much.
Duncan said progressive fees are mainly a gesture of good will since they have no rational basis. For example, Duncan said a young family of five living in a small home likely has more impact on community services that an elderly couple living in a large mansion.
(End of Article)
RE: Homebuilders would face $10K in impact fees - konatopuna - 03-14-2006
Sounds like they are encouraging unpermitted houses. I could understand a 1k$, but 10k? Thats ridiculous. Who's to say that money is spent on roads if the current administration is gone in NOV.! It is much to high of price to pay for the small guy trying to scrape a way up. How about we charge them 10k each for opening their fat mouths.
RE: Homebuilders would face $10K in impact fees - John S. Rabi - 03-14-2006
I would be surprised to see this bill pass. They also try to get the "flippers" since there is another legistlative bill pending that would increase the conveyence tax on properties sold within two years. I can't see that one passing either. I guess these public officials are trying to earn their money by introducing stupid bills. Your tax $$$ at work.
Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185
RE: Homebuilders would face $10K in impact fees - mella l - 03-14-2006
Boy it might be worth it if we got some services like fire, police, water, sewer!!! Hey maybe even a post office box, doesn't that sound reasonable! LOL
mella l
RE: Homebuilders would face $10K in impact fees - Royall - 03-14-2006
That might be "worth it" if one has the ability to come up with the 10K or has a big bank account. To add that to ones mortgage would price a lot of people out of the market.
Royall
What goes around comes around!
RE: Homebuilders would face $10K in impact fees - mella l - 03-14-2006
Oh I get it now, reread this and Duncan from Texas starts out by saying
"To start, Duncan Associates suggested an east-west split. However, various other divisions were suggested by the focus groups, including the current political districts followed by the Hawaii County Council, or four to five areas based on combinations of current political districts".
It is back to the east west split thing again.
Why do we pay tax dollars for people who live in such a different culture to gestimate what is needed in an unfamiliar community, working from census data. I'd like a job gestimating this stuff, where do I sign up? Don't want to end up like Dallas!
mella l
RE: Homebuilders would face $10K in impact fees - David M - 03-14-2006
As I recall this was a popular topic on that other forum a while back with most posters on the pro side. I guess 10K is nothing to many of these westcoasters suffocating in cash. Gee, it only takes money to make Hawaii just like where we left...
Of course, the way it would work, single owners would pay, developers would be allowed to weasel out just as they have in other programs.
Thanks for pointing that out Mella, I missed it 1st read. I wish someone could find and post the historical article about when the Konaside was its own county and asked to be taken back by Hilo - circa early 1900's I think.
David
Ninole Resident
RE: Homebuilders would face $10K in impact fees - David D - 03-15-2006
I think $10K is way too much. I can understand 1,2 or maybe even 3 thousand. $10K is too much. As Royall said that translate into a whole lot of money if you have to incorporate it into the mortgage - $10K would be… what, about $40K(?) on the life of a 30 year mortgage.
Flat out BS is Developers paying one single penny. That house that should go for $250K is going to go for $260K! These things ALWAYS fall to the public! Always!
Another thing that bothers me is trying to get this legislation through before new elections. I don’t want to accuse anyone of a misdeed, but something smells a little ripe. As someone recently pointed out to me, “Politics” breaks down to “Poli” meaning: many & “Tics” meaning: blood sucking insect.
I sure hope you are right, John, about this having little chance of passing. I just don’t have much faith in the local politicians caring much about what happens to other people in the future.
David D
RE: Homebuilders would face $10K in impact fees - Hotzcatz - 03-15-2006
Aloha,
I was wondering when this topic would hit the forum since it has been in the newspapers now twice.
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"Anyone building a home in Hawaii County would pay a fee of about $10,000 to cover the impact he'd have on roads, parks, fire, police, trash and sewers."
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Isn't the road fee covered by a tax on gasoline and car registration? There is no trash pickup so what would these fees pay for? They could charge a "tipping fee" at the transfer stations, but that causes folks to dump rubbish along the road and other "free" places so maybe this is how they would like to fund the transfer stations. There are very few places with sewer service and if they want to charge a fee for that service, then they should just charge those folks that would be effected by it. Which leaves parks, fire and police. I'm not sure how they are currently funded, but the government folks are saying they have extra money right now, I don't see why they would need to increase their excess.
So, if it isn't about getting more money for the County why would they be adding in these fees? To slow down construction?
On Oahu, back in the eighties, they started charging fees for new water installations that were in the thousands. Previous to that it had been a very small fee. If they implement this, it will probably be by fees to cover the individual services.
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"Jim Duncan of Duncan Associates said a key part of the proposed law would be whether to charge an impact fee to those who build on undeveloped lots that already carry proper zoning."
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Ah, this may be more of the reason for it. If you want to build a house on an ag lot, then they would charge the $10K fee.
Are all the big Puna subs zoned AG?
A hui hou,
Cathy
RE: Homebuilders would face $10K in impact fees - JerryCarr - 03-15-2006
Yes, Cathy, most, if not all, of the big subdivisions in Puna are zoned AG. I have a vegetable garden, but that is probably not what the original framers of the zoning laws had in mind. When all us folks actually started building and living on these lots in Puna, it must have been a total suprise to the County politicians. Now they are proposing impact fees to compensate the County for their neglect of basic services all these years. It is amazing that those of us in these "substandard subdivisions" (the County officials use that term frequently) pay the same property taxes as folks in Hilo and get so little in return. The only area of poor service which the politicians have even tried to rationalize is water, which they say is self funded and not supported by property tax. Oh yeah, the roads are "private" so they don't have to worry about that. I wonder why nobody has filed a class action suit to demand equal treatment for Puna and other areas??? The impact fees are just a smoke screen to divert attention from the real issue of neglect of a growing population of residents. Housing is already priced beyond the reach of many working local people, so how is this going to help? Geez, do I sound militant, or what?