Proposed impact fee increases questioned - Albuquerque Journal

Proposed impact fee increases questioned

Local home builders have questioned the proposed new residential impact fee rates, following the Rio Rancho governing body’s recent initial approval.

Last month, Mayor Gregg Hull presented the final report and recommendation from the city’s impact fee committee to city councilors during a regular governing body meeting. Hull, who was the special committee’s chairman, recommended decreasing the city’s commercial, industrial and business impact fees, and increasing the city’s residential impact fees.

Impact fees are charges developers pay to the city to cover the cost of major system-level improvements to handle the growth their developments will bring. Rio Rancho has seven impact fee categories: public safety, parks, bikeways and trails, drainage, water, wastewater and roadways.

The governing body approved the committee’s recommended rate changes, prompting city staff to present the impact fee changes as an ordinance at a future meeting.

John Garcia, vice president of the Home Builders Association of Central New Mexico, said he was surprised by the proposed rate increase for commercial development.

“The impact fees in this particular submarket are higher than the rest of the region,” Garcia said.

According to the proposed changes presented last month by Hull, impact fees for a single-family residential unit would increase from its current rate of $9,882 to $10,718.25 by 2021. If approved by the governing body, the new rates would begin July 1.

At first, the new rates would decrease to $9,427 in its first year and $9,714.30 by 2018, before increasing past $10,000 in 2019. The current impact fee rate for a single-family residential unit in Albuquerque is $7,901 and $10,252 in Bernalillo County.

Garcia said although he understands the role of impact fees on funding the city’s infrastructure, the proposed new rate would put too much of a burden on residential impact fees.

“We support the need for building out (Rio Rancho’s) infrastructure,” Garcia said. “In my opinion, one way is through these impact fees, but they need to be complemented by other things than just these fees. You’re not going to get everything to build this place out with an impact fee only.”

Brian McCarthy, co-owner of Abrazo Homes, said although he understood the city’s want to increase residential impact fee rates, he was worried the change could impact potential homebuyers.

“As costs increase, for every thousand dollars of a cost increase, there’s another 700 people across the city who can no longer qualify for that home in question,” McCarthy said.

Garcia and McCarthy said the new rates only incentivize commercial developments to consider building in the city.

“In that regard, which kinds do you like best: commercial or residential? You need them both in the community,” Garcia said. “Just like they want to use it to attract commercial development, that will probably work and you’re going to price out certain people in the market because the price is going to go up on a house and there’s people that won’t qualify for financing. The market will respond to this.”


Albuquerque Journal and its reporters are committed to telling the stories of our community.

• Do you have a question you want someone to try to answer for you? Do you have a bright spot you want to share?
   We want to hear from you. Please email yourstory@abqjournal.com

Nativo Sponsored Content

taboola desktop

MORE ARTICLES LIKE THIS

1
As AI progresses, keep humanity, humility in mind
ABQnews Seeker
When my business partner and I ... When my business partner and I launched our company in the mid-1990s, we debated whether to install ...
2
Northern NM still recovering from damaging December storm
From the newspaper
Governor signs order for disaster declaration ... Governor signs order for disaster declaration in Taos County
3
COVID tests out there ... somewhere
ABQnews Seeker
Testing shortages are unnerving the public Testing shortages are unnerving the public
4
Lobos face surprise of the Mountain West Saturday at ...
College
The ball sails freely in that ... The ball sails freely in that cold, thin air of Laramie, Wyoming.And as the University ...
5
Twins subplot aside, Lobos' Duffs prioritize getting the victory
College
Twin showdown, double trouble, twice the ... Twin showdown, double trouble, twice the fun ...The Duff and Cavinder sisters have und ...
6
Bill would set $15 minimum wage for state employees
ABQnews Seeker
Move could increase pay of 1,200 ... Move could increase pay of 1,200 workers
7
Insurers pushed to settle archdiocese abuse claims
ABQnews Seeker
Nearly 400 victims still in limbo ... Nearly 400 victims still in limbo four years after Santa Fe church filed for bankruptcy
8
Garvey tells Lobos their upward journey can begin here, ...
Baseball
When Steve Garvey first came to ... When Steve Garvey first came to Albuquerque in 1969 as a fresh-faced 20-year-old in just his second ...
9
Lobos begin indoor T&F stretch with MLK Jr. invitational ...
College
The University of New Mexico men's ... The University of New Mexico men's and women's track and field programs begin their four-weekend stretch of home meets Saturday with the Dr. Martin ...