Impact fees may be increasing in Raleigh, NC

By
Real Estate Agent with Keller Williams Realty NC RE Lic #210076

The Mayor of Raleigh, NC is planning to move forward to raise impact fees on builders and developers of new housing in the city of Raleigh.

While it may not be a "politically correct" thing for a realtor® to support development fees, I feel this is the right approach. I would like to see new construction should pay its fair share of the impact it will have on roads, parks, water and sewer facilities and other infrastructure.

Currently the impact fee in the city of Raleigh, NC for a 2,500 to 2,700 square foot home is about $1,200. Mayor Meeker plans to raise it to about $2,500. While this doubles the fee it will not have a huge impact on the final price of a new home.

The mayor's opponents have said that this will slow growth in the Raleigh, NC housing market which is feeling the effect the housing market slowdown and the recent mortgage industry problems. I am not favoring slowing our growth, but I believe it should be done with proper attention to the cities ability to pay for and to support the growth. And it should be done in a fair manner.

While it is true that everyone can benefit from growth, I do not believe the numbers have been equitable in Raleigh for some time

I would like to hear how others feel about impact fees and how much they are in some other areas of the country.

Comments (4)

Eleanor Thorne
Equity Resources - Cary, NC
Equity Resources 919-649-5058
We have them in Cary - there were fees charged for schools by the last administration and now those fees have been deemed ILLEGAL!
Dec 03, 2007 10:01 PM
Arthur Poling
Keller Williams Realty - Raleigh, NC
A high level of personalized service in buying and

I would be interested in why they were deemed illegal and by whom.

 Maybe the mayor does not know about this or he is trying another approach.

 Thanks for the comment.

Dec 04, 2007 12:21 AM
Susan Trombley
Trombley Real Estate - Wake Forest, NC
Broker/Realtor, Raleigh, Cary, Wake Forest, Youngs
Everybody wants more and more money every where you look. It price increase will never stop it will be the amount that it jumps.
Dec 06, 2007 12:13 PM
Brian Wray
Wray Realty - Holly Springs, NC

Can't the politicians see that NC is already one of the nations highest taxed states?  We are taxed on everything.  This is really just another tax that will be passed onto the end consumer.  If Developers pay more fees, then they will pass it to the builder, and if the builder pays more fees, then they will pass it on to the consumer.  So.  This is really another tax on the public and on home ownership. Let's Call it what it really is... an additional property tax.

Jun 04, 2008 12:38 PM