03-14-2006, 12:43 PM
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)
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)