Arizona Legislation Forces Major Impact Fee Reform
Thanks in large part to the Southern Arizona Home Builders Association (SAHBA), Arizona has a new law on the books dealing with development fees that represent the first real reform of impact fee statutes in many years.
Senate Bill 1423, sponsored by Senate President Tim Bee of Tucson, was signed into law in April.
A significant part of this complex, compromise bill involved the timing of impact fee payments by home builders, something SAHBA fought for with enthusiasm. SB 1423 allows development fees to be paid later (ie, at closing) rather than at the issuance of construction permits. Currently, fees are paid up front.
Last year, a similar bill was vetoed by Governor Janet Napolitano. This year, the Governor was happy to sign the legislation that was crafted after months of negotiations between cities, home builders, commercial developers, and other stakeholders.
“The cities and their lawyers were comfortable with the status quo, but we believed the housing industry needed real reform,” said SAHBA President Ed Taczanowsky.
The new law contains many changes to current law, chief among them is a new mandate for accountability. Under SB 1423, cities are required to:
- Identify the methodology for calculating the amount of any impact fee
- Explain the relationship between the fee and the city’s general plan
- Include documentation that supports the assessment of a new or modified fee
- Identify any index or indices to be used for automatic adjustment and the timing of those adjustments
For more information, contact Roger Yohem at Southern Arizona Home Builders Association at ryohem@sahba.org, or Ed Taczanowsky, SAHBA president, at 520-795-5114.
[
return to top ]
|
