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1. What is an Impact Fee? 2. Why were impact fees created? 3. What are the different types of impact fees collected by Orange County? 4. Will the amount of the impact fees change? 5. How are impact fees calculated? 6. What would the estimated total impact fee be for a new single family home? 7. When are impact fees paid? 8. Do I have to pay impact fees for an addition or remodel of my existing residence? 9. Do I have to pay impact fees if I am replacing an existing residence? 10. Do I have to pay impact fees if I am changing the use of an existing structure? 11. I am building in a City; do I still have to pay impact fees? 12. Does non-residential development have to pay impact fees for all of the facilities for which impact fees are charged? 13. Does the County offer any assistance with the payment of impact fees? 14. Are there any additional fees that must be paid as part of new construction?
1. Q: What is an impact fee? A: Impact fees are charges assessed against new development to address the cost of providing capital facilities needed to serve the development. Impact fees provide one way to help ensure that existing residents will not bear the cost of new facilities necessitated by the new development. The funds collected cannot be used for operation, maintenance, or repair of capital facilities. The term "impact fee" does not include utility hook-up fees, dedication of rights of way or easements or construction or dedication of on-site water distribution, waste-water collection or drainage facilities, or streets, sidewalks or curbs if the dedication or construction is required by a previously adopted valid ordinance or regulation and is necessitated by and attributable to the new development.
2. Q: Why were impact fees created? A: The Board of County Commissioners adopted impact fees in order to collect funds from new development to pay for the new facilities required by growth. In other words, a development impact fee is a financial tool to reduce the gap between the money required to build new public facilities to serve new residents and the money available for that purpose.
3. Q: What are the different types of impact fees collected by Orange County (not including utilities)? A: Impact fees are collected for five different public facilities: transportation, law enforcement (sheriff), fire, parks, and school facilities.
4. Q: Will the amount of the impact fees change? A: Yes. The Board of County Commissioners reviews and adjusts the impact fees charged to new development on a four-year cycle as required by resolution. The most current updates are listed below:
- School impact fee ordinance was updated on October 23, 2007(effective 1/28/2008). The law enforcement impact fee schedule is indexed by 5% annually and rates increase on January 28th in the years that a new study is not adopted.
- Road impact fee: Approved by the BCC on April 27, 2004, effective July 1, 2004. The road impact fee schedule is indexed by 3% annually and rates increase on July 1st in the years that a new study is not adopted.
- The law enforcement impact fee ordinance was updated by the Board of County Commissioners (BCC) on February 7, 2006 (effective 3/10/2006). The law enforcement impact fee schedule is indexed by 2.5% annually and rates increase on March 10th in the years that a new study is not adopted.
- The fire impact fee ordinance was updated by the BCC on February 7, 2006 (effective 3/10/2006). The fire impact fee schedule is indexed by 3.5% annually and rates increase on March 10th in the years that a new study is not adopted.
- The parks and recreation impact fee ordinance was adopted by the BCC on February 7, 2006 (effective 3/10/2006). The parks impact fee schedule is indexed by 7.4% annually and rates increase on March 10th in the years that a new study is not adopted.
5. Q: How are impact fees calculated? A: The amount of the impact fee depends on the size and type of the new development. To determine the fee for a specific use, the proposed use shall be multiplied by the unit rate for that use. If the development for which a building permit is sought contains a mix of uses, the applicant must separately calculate the impact fee due for each type of development.
6. Q: What would the estimated total impact fee be for a new single family home? A: Effective July 1, 2006, the estimated total impact fee for a single family residence in the unincorporated area of the County is $12,016.74. Fees for transportation, law enforcement, fire and schools are indexed to increase annually. The fee amounts are identified in the following table for each time period*.
EFFECTIVE 7/01/07 EFFECTIVE 03/10/08
Transportation $3,605.00 $3,605.00 Fire $207.88 $215.16 Schools $7,000.00 $11,829.00 Law $197.83 $202.78 Park $1,205.98 $1,295.22 TOTAL $12,111.69 $17,147.16
7. Q: When are impact fees paid? A: For new development located in the unincorporated area of the County, the total amount of the impact fee required must be paid at the time a building permit is issued.
8. Q: Do I have to pay impact fees for an addition or remodel of my existing residence? A: No. An alteration, expansion, or remodeling of an existing residential dwelling unit that does not create additional dwelling units are exempt from the payment of impact fees.
9. Q: Do I have to pay impact fees if I am replacing an existing residence with the same type of residence? A: No. The replacement of a residence (dwelling unit) with a new residence is not required to pay impact fees, provided the residential unit is replaced within five years of its removal or demolition. For the Road, Law, and Fire Impact Fees, the residence must have been demolished after 1983. For the Park Impact Fee, the residence must have been demolished after January 1, 2006, to receive credit. This provision applies to the replacement of mobile home units within a mobile home park or on private property. For the school impact fee, the original dwelling unit must have been located on the site as of January 1, 1993.
10. Q: Do I have to pay impact fees if I am changing the use of an existing structure? A: Yes. Impact fees are imposed and calculated for the alteration or expansion of an existing building, if the usable square footage is increased or if a change in the use constitutes a different impact fee land use category. The amount of the fee is imposed and calculated based on the applicable impact fee for the new use less the impact fee that would be imposed prior to the alteration or change in use.
11. Q: I am building in a City; do I still have to pay impact fees? A: Yes, but not to the County. Impact fees are generally charged for new development within a city for transportation (roads), emergency medical service (EMS), and schools. These facilities are provided to all residents within municipalities and the unincorporated area of the county. Each jurisdiction establishes its own schedule of fees, and may charge differing rates or have fees for other services such as libraries or other public facilities. Please contact the Impact Fee Coordinator for the individual jurisdiction to inquire about their fee structure.
12. Q: Does non-residential development have to pay impact fees for all of the facilities for which impact fees are charged? A: No. Impact fees for school and park facilities are only charged for residential development. Impact fees for transportation, fire, and law enforcement are charged for both residential and non-residential development. Please consult the impact fee rate schedule to determine the impact fee charges for the applicable non-residential land use.
13. Q: Does the County offer any assistance with the payment of impact fees? A: Yes. The County has a grant program designed to assist non-profit 501(c)(3) organizations with impact fees assessed on projects that provide specific services to the citizens of Orange County. Details are available on the Growth Management Department website at www.ocfl.net/growth or by contacting the Fiscal & Administrative Services Division.
14. Q: Are there any additional fees that must be paid as part of new construction? A: Yes. Water and wastewater capital charges are paid by developers to use capacity in our systems for their projects. These charges were increased on May 1, 2005, with the last phase scheduled for implementation on May 1, 2006. The capital charges were last revised in 1996, with the final phase effective on June 1, 1999. Contact Orange County Utilities at 407-254-9900 for more information about water and wastewater capital charges.
*This data is provided for informational purposes only. In the event of any difference between this text and the adopted impact fee ordinances, the adopted ordinances shall control. Please contact the Orange County Concurrency Management Office at 407-836-5617 if you have any questions regarding this publication.
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