Wednesday, March 7, 2007

The cost of a new house in Chandler will go up $6,000

Author: Skia
Category: Real Estate

The cost of a new house in Chandler will go up $6,000 when new impact fees take effect June 4.

The increase - to $19,538 from $13,587 on a single family home - was approved, 4-3, by the City Council on Monday after a lengthy debate.

It makes Chandler’s fees one of the Valley’s highest and considerably more than those charged in neighboring Gilbert, Mesa and Queen Creek. That has home builders crying foul and accusing city leaders of forcing newcomers to pay more than their fair share.

Lauren Barnett, deputy director of the Home Builders Association of Central Arizona, said the increase will force about 15 percent of the city’s population to pay nearly half the costs of new parks.

Chandler is close to build-out and city officials estimate there is space for fewer than 15,000 new homes.

“We can’t justify this kind of increase . . . these numbers are pretty egregious,” said Councilman Martin Sepulveda, who voted against it and urged the city to recalculate with more participation from builders. The fees, which are assessed on a per structure basis, are the same whether it’s a starter home or an expensive custom mansion.

Proponents of the increase, including Mayor Boyd Dunn, say growth should pay for itself and the higher costs of construction and land for new parks justify the large increase. The money is paid by home builders for growth-related infrastructure like roads, parks and waterlines and is passed on to buyers in the price of a house.

Norm Nichols, president of Fulton Homes, said Chandler is increasing service levels and sizes of the parks, unfairly forcing the newest residents to pay for amenities available to everyone.

The builder is currently developing Fulton Ranch, Chandler’s last large planned community.

Source:

http://www.azcentral.com/community/chandler/articles/0307cr-impactfees0307Z6.html

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