Impact fees allow a municipality to collect fees from developers to mitigate the fiscal impact of the development on the community and to help pay for municipal or school capital costs. To do this, a community needs to have in place a capital improvements plan and adopt an impact fee ordinance, which includes a sound basis for a fee to pay for a development’s fair share of the necessary projects. To encourage or support impact fees, RPCs should:
- Educate municipal officials about impact fees as a tool to help pay for infrastructure improvements and create more homes.
- Disseminate educational information (e.g., capital budget and program, sample impact fee ordinance and formulas) to help communities implement this tool.
- Provide technical assistance to local planning officials in the preparation of impact fee ordinances.