1	Guidelines for the Imposition of Impact Fees a
2	When Should a County Consider Impact Fees? Rapid growth and development. Significant land available. Federal/state funding unable to meet needs. Increasing annual construction costs. Resistance to increased property taxes.
3	Why Impact Fees? Shifts a portion of the cost of providing capital facilities to serve new development from the general tax base to the new development generating the need. Encourages comprehensive planning. Maintains existing levels of service. Helps ensure adequate public facilities.
4	Purpose of Impact Fees: To have new development pay its pro rata share of infrastructure costs. Cannot be used for operational costs or to cure existing infrastructure deficiencies.
5	Enabling Legislation 27 states have enabling legislation Absent such legislation other jurisdictions have relied on police powers and home rule
6	Purposes of Enabling Legislation Ensures that local governments cannot extort concessions through the development process. (Takings) Ensures that all developers are treated fairly and consistently. (Equal Protection)
7	How Does S.C. Law Define Impact Fees? “a payment of money imposed as a condition of development approval to pay a proportionate share of the cost of system improvements needed to serve the people utilizing the improvements.” S.C. Code § 6-1-920(8)
8	Dual Rational Nexus Test Improvements must be needed and benefit the properties paying. Fees must be roughly proportionate to the impact of the development .
9	Reasonableness Distance between the properties paying the fee and the facilities constructed. Length of time between collection of fee and construction of facilities. Amount of fee in relation to the cost of the facilities. Need - the relationship between the burden created by the development and the increased facility needs.
10	Reasonableness Benefit - the ability of the facilities constructed to meet the needs resulting from the development. Accounting –assurance that the fees are used solely for the type of facilities for which they were collected and in the area serving the new development
11	S.C. Impact Fee Act Must follow adoption of a Capital Improvements Plan (CIP). Fee may be used for capital improvements with a useful life of five years or more. Capital equipment and vehicles purchased must have a purchase price of not less than $100,000.
12	S.C. Impact Fee Act Collected at building permit issuance Must be expended within 3 years or refunded May be used for water, solid waste, transportation, storm water, parks and recreation, libraries, fire/ems, law enforcement
13	Documents Housing Affordability Analysis – effect on availability of affordable housing. Fiscal or Transportation Impact Study/Analysis Capital Improvements Plan Impact Fee Ordinance
14	Problems Takes a lot of staff time and fees can’t be used to pay for it. 3 year spending requirement Need affordable housing provisions Cannot be used for schools
15	The Good News
16	S.C. Supreme Court Rules “Although the capital improvements plan, as amended by the Tishler Report, does not comport with every criterion of the Act, we find it substantially complies with the statutory requirements.” … “We find the calculation of fees in the ordinance sufficient.”
17	Conclusion It can be and has been done in Summerville, Beaufort (including Hilton Head), Mt. Pleasant, and Berkley County. Get professional help. Prepare like you are going to court.
18	Questions?