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4. Nexus Studies and Fee Structuring
Public agencies commission nexus studies to establish legally defensible fees
Establish maximum defensible fee ceilings;
Develop standard fee schedules by land use - Residential (Single vs. Multi-Family), Non-Residential (Commercial, Industrial); ….and for different infra category - Transportation,
Water/sewage, Parks/open space, Fire/safety, Affordable housing; Question - Could maximum ceiling impede new developments?; Refine/finalize fee schedules and legislate DIF program
Ultimate fee decisions driven by funding priorities and DIF effect on new development feasibility based on local real estate market
Designing DIF Fee Structure—Basic Components
Defining Service Areas and LOS Standards
Define Service Area
Geographic-specific impact fees for variations in infra costs and project impacts:
- Existing infrastructure capacity (infill vs. Greenfield)
- Proximity to public transit
- Availability of other funding sources
Establish LOS Standards
Most State DIF statutes allow full local authority in setting LOS standards
- Generally, same LOS standards for all
- LOS standards can vary based on local
growth/land use policy, development
patterns/constraints
Setting Standard Fees and Payment Schedule
Standard fee schedules for each service area based on LOS stds
- Fees for each infra category and each land use within category
- Based on incremental infra costs to accommodate new trips
- Residential: No. trips/dwelling unit (DU) for single vs. multi-family
- Non-residential: No. trips/1,000 sq. ft. for office, retail, industrial
- Inter-jurisdictional fees for regional impacts, share resources
Payment Timing
When fees are imposed (assessed) and when they are collected
- Timing of building permit vs. certificate of occupancy (CO)
- Significant lag between the two and many variations
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