Development fees could as much as double in Phoenix if the City Council approves a proposal from its Planning Department to raise rates. The proposed increases are expected to come up for a vote in April.
The fees charged to builders help the city pay for water plants, roads, first responders and other important infrastructure. Phoenix staff say the money is needed to keep up with growth.
But real estate experts say developers are likely to pass on the fees to homebuyers and renters, even as housing costs remain high.
“Higher impact fees will be passed right onto consumers,” said Mark Stapp, of the real estate program at Arizona State University. “It’s going to make housing more expensive.”
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