Impact Fee Reduction Has A Negative Effect

Hernando county commissioners are considering the reduction of impact fees in order to take advantage of an opportunity to share in the $20 million state affordable housing fund for first-time buyers. In addition, the commission rationalizes that this could stimulate the economy. This misconception will have nothing but a negative impact on the citizens of Hernando County.

First, consider the amount of money that would be available if the funds are shared equally among all the counties in Florida. It would roughly represent $300,000 per county. Is this worth wrecking total havoc on all the homeowners in the county for a few to buy homes for the first time?

Look at it this way. If impact fees are reduced by say $8,000, it means that the market value of the first-time buyer's house is reduced by that amount. Then the market value of all existing houses will ultimately be reduced by that amount in order to stay competitive if owners elected to sell. Furthermore, the impact fee reduction is not only available to first-time buyers but to all buyers.

What does this mean? It means that all future homes built in the county will pay lower impact fees, thus, less money will be available for infrastructure. So, how do we make up for this difference? We either increase real estate taxes, increase sales taxes or issue bonds. So, for the small number of first-time home buyers that would benefit, a large number of citizens would suffer. Furthermore, by reducing the impact fees and, thus, property values, real estate fees collected by the county will be reduced.

The only group who benefits from such a reduction is the home builders. It should be noted that they are the only sector trying to influence the commission to take such action. Home builders are like a bunch of carpetbaggers. They come to an area to build homes as cheaply as they can, arguing for minimum impact fees, and have no concern for a responsible infrastructure. Then they leave with a nice tidy profit.

I realize that our commissioners are influenced by business people because they help fill their coffers at election time and, at times, provide opportunities for the commissioners themselves. I would hope that, in this case, they will put their concerns for the citizens first.

John J. Davis

Brooksville