the Oasis

Impact fees are fees added to the construction costs of houses to be built in a municipality or school district.

They are fees collected to pay for infrastructure improvements like roads, schools, or public services, such as fire stations or parks.

They are assessed on new builds so as to put the onus of contributing to projects spurred by increased residential growth onto residents moving into an area  – the thinking being that existing residents should not have to shoulder the burden of paying for growth and maintenance of public spaces and infrastructure while new residents get to just move into desirable areas.

Impact fees are a one-time, upfront cost. Builders do not love them because they add (in some cases, like Fort Mill, significantly) to the already high cost of building a new house or apartment building.

Affordable housing advocates don’t love them either, as adding thousands of dollars to new construction – which can be well over $150,000 just to build the structure – can put new houses out of reach for new or struggling buyers.

Local governments embrace them as a way to show that officials are managing growth without having to raise local taxes to pay for growth-related projects.

In South Carolina, more than two dozen municipalities and counties have imposed impact fees on new builds.
If you like reading state laws (we’re not big fans, but we do it anyway), you can check out the South Carolina Code of Law’s Section 6-1-910 and learn everything legal about impact fees in the state.