April 4, 2006 -- Wicomico County Council passed the legislation to implement impact fees on all new construction
The Wicomico County Council passed the legislation to implement impact fees on all new construction—$5,231 on single family homes and $1,524 on newly built apartment, townhouse and condominium units. The majority of speakers from the floor were in favor of excise taxes and/or removal of the 2% tax cap that has been choking the county for the past six years.
March 24, 2006 -- Wicomico County Debates Development Impact Fee
The Wicomico County Commissioners at their March 7 meeting introduced legislation to establish Chapter 130, titled "Development Impact Fees," of the Code of Wicomico County, Maryland. This legislation would require that an impact fee be charged on all new development. It is proposed to charge an impact fee of $5,231 to single-family homes and $1,524 to all other residential property. The Wicomico County Commissioners will hold a Public Hearing regarding this legislation on Tuesday, April 4, at 7 p.m. at the Wicomico County Civic Center.
The fees will be used for new school construction that will be required by the new development. The Coastal Association of REALTORS® is very concerned about the effect that an impact fee will have on the cost of moderately priced homes within the county. The economic welfare of all county residents depends upon providing an ample supply of workforce housing. When companies consider locating or re-locating to an area one of the first things they look at is the availability of affordable workforce housing. Studies show that for every $1,000 increase in housing costs, there is a corresponding increase in the number of families that can NO LONGER AFFORD to buy a home. Other studies have shown that as the cost of new homes rises in an area, the cost of ALL existing homes rise as well.
All REALTORS® are urged to attend the public hearing on April 4 and support your President, Pat Terrill, as she speaks about this very important issue. You may also call the Worcester Commissioners.
February 22, 2006 -- RPAC VICTORY: Worcester County Commissioners Vote Down Proposed Impact Fees!
The February 21 public hearing on the Worcester County Impact fees was well attended by representatives from the Coastal Association of REALTORS® and the Eastern Shore Building Association. Remarks made by Pat Terrill, CAR President, and Steve Rakow, Vice President of the Eastern Shore Building Association, helped persuade Commissioners to vote down the impact fee. Ocean City Mayor Jim Mathias also spoke out against the impact fee.
The vote was 4 to 3 with Commissioners Tom Cetola, Bud Church, Louise Gulyas and James Purnell voting against the impact fee, and Commissioners Sonny Bloxom, Judy Boggs and Virgil Shockley voting for it.
February 10, 2006 -- REALTORS® Oppose Worcester County Impact Fees
The Coastal Association of REALTORS® is opposed to the implementation of the proposed Worcester County Impact Fee. The association finds no apparent justification for imposing additional impact fees on county property owners/residents in the form of a development impact fee when the county is already running a surplus. In 2005, the county raised more than $23.7 million from the real estate transfer tax and recording fees. This averages $1,200 per household in county revenues.
Development impact fees will be passed along to homebuyers in the form of higher prices. For some families, the amount of the price increase may mean the difference between being able to qualify for a mortgage loan to buy a particular home or not. The solution for many families will be to move out of the county to a location where housing prices are lower. Instead of raising county revenues, CAR 2005-2006 President Pat Terrill said the proposed fees could have an adverse effect on the real estate sector. "The proposed development impact fee will be an additional and unwarranted burden on the transfer of real estate," Terrill said. "The association is concerned that price increases caused by the development impact fee could have a chilling effect on sales of new homes in the county and eventually slow growth."
We encourage CAR members to attend the public hearing scheduled for February 21, 2006, at 1:30 p.m.
January 26, 2006 -- Worcester County Proposes School Impact Fees
CALL TO ACTION!!!! The Worcester County Commissioners will hold a public hearing on Tuesday, February 21, 2006 at 1:30 p.m. at the County Commissioners meeting room in Snow Hill on Bill 06 “Worcester County Public School Impact Fee Law”. The bill will enable the Commissioners to pass a resolution to impose an impact fee on new residential developments to fund capital expansion of public schools. Builders will have to pay the impact fee prior to a building permit being issued. The cost of the impact fee will likely be passed down to the buyer. This increases the cost of new construction and could possibly price some buyers out of the market. An exemption for workforce affordable housing is included in the bill. The firm of TischlerBise, Fiscal, Economic, and Planning Consultants has recommended the following impact fees to the County Commissioners: $5,942 per single-family detached home; $2,514 per moderate-intensity multifamily units consisting of 20 or more units; and $3,471 per mobile home or other residential unit. However, the bill is not all inclusive. This opens up the possibility of additional fees being added to the bill to cover broader public uses. If our voice is to be heard, we need to attend the Public Hearing on Tuesday, February 21, 2006 at 1:30 to support our President, Pat Terrill as she speaks to this important issue and call each of our County Commissioners to voice our opposition to this bill. Phone numbers for each of the Commissioners can be found here.
Worcester County Commissioners propose cutting more growth areas in the Worcester County Comprehensive Plan. The Worcester County Commissioners, at their January 10, 2006 workshop have proposed cutting the following three growth areas: 1) Newark; 2) the “quadrangle” defined by MD 90 on the north, MD 589 on the east, US 50 on the south and US 113 on the west; and 3) property along MD 589. In addition, all property designated as growth areas outside of the municipalities have been proposed to be annexed into the municipalities before they can be developed. Furthermore, the commissioners have instructed staff to look into the possibility of cutting the growth area in the Showell area. If all of these proposals are implemented, it will significantly reduce the amount of new growth areas in the comprehensive plan. The commissioners will hold another workshop next Tuesday, January 31, 2006 at 10:00 a.m. in Snow Hill to finalize the Worcester County Comprehensive Plan. Please call each of the commissioners to voice your opposition to cutting these growth areas.
