On Tuesday the County Council thought better of creating a new impact fee on homeowners putting an addition on their house. Congratulations, you got it right. Additions to existing homes should not have been added to the Impact Fee fiasco that's been going on in the county for years.
Is the impact fee issue in Anne Arundel County done? No! The Council has the hard work ahead of it which is to decide how, and how much to increase fees on new development. It's estimated that Anne Arundel County only collects a bit more than 20% of the actual cost required to provide services. This percentage is among the lowest in the State.
It will certainly be a challenging debate in the coming weeks. Is it the right thing to do to increase fees now with the real estate market facing serious problems in the county? That has to be mashed against the low fees and the questions about why are taxpayers subsidizing new development. After all, we know that builders will just pass the increased fees down to their buyers. That might have worked a couple of years ago when the market was sizzling but right now it may just be one more nail in the proverbial coffin of some builders.
Stay tuned to County Council goings on in the next couple of weeks regarding impact fees. At least for now they got it right.
Richard Iarossi is a full time licensed REALTOR®, working in Crofton, MD. My coverage areas are: Anne Arundel, Prince George’s, Howard, Calvert, Queen Anne, and Baltimore City and County. I specialize in residential real estate, working with both buyers and sellers. Use the registration free search on my website at www.RichSellsHomes.com. If you’re not already working with a REALTOR®...I can help. Call me at 443-995-9595 (Cell) or 410-451-6255 (Office).
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