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facilities, and public buildings, and capacity charges fund expansion of the county's <br />regional water and sewer system. Because those fees are based on fairshare payments by <br />the people benefiting from the capital improvements, impact fees and utility capacity <br />charges cannot be waived or reduced for any individual group or category of <br />construction. On the other hand, those fees increase the cost of housing and put a burden <br />on the production of affordable housing projects. To lessen the impact of those fees on <br />affordable housing projects, the cost of impact fees may be paid by other funding sources. <br />Waiving impact fees does not eliminate the cost of the infrastructure that the impact fees <br />are designed to pay for. Either new development or existing residents must pay the cost <br />of needed infrastructure improvements. If new development, which puts additional <br />demand on county facilities, does not pay its fair share of infrastructure cost through <br />impact fees, then existing residents will have to pay those costs through higher fees or <br />taxes. <br />While waiving or reducing impact fees without a justifiable subsidy is not legal, impact <br />fees for affordable units may be paid from other funding sources. Consistent with that <br />allowance, the county provides impact fee loans and grants to extremely low, very low, <br />and moderate income households thorough the SHIP program. <br />In the past, the county has provided impact fee grants and loans to eligible households as <br />part of several CDBG neighborhood revitalization and housing projects. Also, the county <br />provides impact fee loans associated with new home construction to all Habitat for <br />Humanity clients. In addition, the county provides impact fee grants and loans to eligible <br />individuals needing to connect to the county water or sewer system. <br />Overall, the county has provided many SHIP impact fee grants/loans to eligible <br />households. Since this program has been successful, the county should keep its SHIP <br />Program impact fee assistance strategy for income qualified households. <br />Since 2009 the county has suspended payment of several impact fees, thus reducing <br />impact fee costs for new developments and new housing units. 2013/2014 impact fee <br />study has also revised and reduced many impact fees. <br />RECOMENDATION: <br />The county should maintain Housing Element Policy 4.3 and Policy 4.4, regarding <br />financing of impact fees, payment of impact fees, and payment of water and wastewater <br />capacity charges for income eligible households through SHIP funds. ' <br />BOARD OF COUNTY COMMISSIONERS ACTION: <br />Board of County Commissioners Approval of the AHAC Recommendation <br />Yes [J] No ❑ <br />F:\Community Development\SHIP\AHAC\AHAC 2014\AHAC 2014 report.doc <br />8 <br />53 <br />