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I've never heard of a municipality trying to stop teardowns by imposing high permit fees. I suspect it may not be successful, depending upon your circumstances. In areas I am familiar with, beautiful victorians priced at a half-million or more are being nocked down to build tasteless trophy homes. Another $10,000 is not going to make a difference. I wonder if maximum lot coverage, square footage, and/or other such restrictions would work better?
A concern that I have with this is that generally fees charged by a municipality should reflect the cost of the service that is provided, I suspect it would be hard to justify a $10,000 cost to administer a demolition permit for a single residence. I agree with the above comment, we're planners, lets look at
The point of the high tear down fee mentioned by Mr. Shure is to support a trust fund for development of affordable housing in a rapidly escalating housing market. The rational nexus for the fee is that as more modest homes are torn down and larger homes are put up, housing affordability in the community is diminished both in terms of housing prices and loss of affordable housing stock. Discouraging teardowns would be a potential positive outcome of the fee.
Certainly a good idea in my mind. I would like to get more info on your results and a copy of any proposed legislation or ordinances. In theory it should work. The only thing that pops into my head is how will you find surplus property for affordable housing that will be affordable to build on. And will affordable housing developers that do tear downs have to pay the fee?
I'd agree with Lee and David that the idea is rational, but I share Jeff's concern that its not "nexus" enough.
The fee is supposed to be just the immeadiate cost incurred in the permitting process. The co-incidential effect to the cost of housing would need to be addressed somewhere else. I've seen the same thing done with cell tower fees, but the courts have not yet struck down a $2500 fee for a permit.
My City is interested in doing something similar. Our community is experiencing tremendous growth in warehousing. Companies are buying out complete neighborhoods and demolishing the homes. We would like to asses a fee that could be used to fund an affordable housing development pool that could be used to leverage CDBG/HOME grant dollars to build affordable housing. If anyone has done anything similar, I would like to get a copy of the ordinance e-mailed to me. Thanks!