Developer Impact Fees

Impact fees are one-time charges levied on new development to pay for the expansion of public facilities required by that development (water treatment, schools, roads).

Theory	Reality
Growth pays for growth. New subdivisions pay for the new roads they require.	Flat impact fees heavily subsidize sprawling low-density development while penalizing dense, efficient infill development.

The Math Problem

Many municipalities charge a flat water/sewer impact fee per "Dwelling Unit" regardless of where it is built. A new single-family home on the edge of town might require 2 miles of new pipe and a pump station. A new duplex downtown requires zero new pipe. Yet, under flat fee structures, the downtown duplex pays double the impact fees of the suburban home.

This perverse incentive structure actively discourages Missing Middle Housing and accelerates the Suburban Ponzi Scheme.