Tuesday, July 25, 2006
Impact fees are new construction costs to the city for fire, sewer, water, and road resources as a result of growth. Builders are charged these impact fees which are directly passed to the buyers. Just to note closing costs on new construction homes are higher, as these extra fees are not associated with a resale home. Over the next 15 months the City of Orlando preliminary planned to raise impact fees by 18.8%. This increase would raise the current feee from $1,192 to $2,400 on 1/0/07, then to $3,600 on 10/1/07. This is lower than $6,147 which was initially recommended by consultants. Affordable housing developments are exempt. The Orlando Mayor and developers were please with a compromise and reduced increase. The Executive Director of the Orlando-based Coalition for Property Rights oppose the impact fee indicating this will continue to make Orlando Real Estate unaffordable. Courtesy of Orlando Sentinel 7/25/06.
Posted by Buyers Broker of Florida at 9:47:00 AM