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The primary purpose of impact fees is to fund infrastructure improvements while ensuring that growth pays at least a portion of its way in terms of infrastructure costs. Increasingly, communities are looking for impact fee systems that also further other community goals, such as growth management or housing affordability. Impact fee systems can be designed to provide economic incentives for developing at higher densities, locating closer to existing facilities, avoiding areas with severe development constraints and building smaller, more affordable housing units. However, such innovative approaches can also present political and technical pitfalls. For example, fees based on the size of the unit can generate opposition from existing homeowners if the fees apply to residential additions. Arterial street fees based on the longer trip lengths resulting from development on the fringe may backfire when cheaper right-of-way and increased use of freeway travel are taken into consideration.

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Author and Copyright Information

Copyright 2002 by author

James C. Nicholas
University of Florida
Gainesville, FL
Phone: 352 392 8832
Fax: 352 392 3005
nick2@ufl.edu