Monday, May 22, 2006

Impact Fees of New Construction Home

Impact fees may make a real impact on New Construction Home prices in Orlando, Florida. Impact fees are charged to a new home builder for to maintain/build roads, and schools are the biggies. New home builders pass this charge along/share cost to buyers that want to build a new home. Impacts also effect retail building etc. Impact fees in Orange County have not been raised since 1996. As a result of rise in the cost of land, concrete and steel and the need to build a better infrastructure to accomodate growth, has created the need to increase impact fees. The county is proposing to increase fees from $12,800 to 18,947 which represent a 516 percent increase. This will make resale homes a a less expense option for homebuyers. This proposal coming at a time in which the counties are looking a ways to create more affordable housing for residents.