What is a developmental impact fee?

A developmental impact fee is a type of fee that is sometimes charged by local governments in North Carolina as part of their eminent domain law. This fee is based on the idea of "growth-share." It is meant to ensure that local governments are sharing in the costs associated with increased development in their area. Developmental impact fees allow local governments to collect money from new development projects, such as real estate developments, in order to help offset the costs associated with that development. The fees cover a variety of expenses such as infrastructure investments, public safety costs, and environmental protection measures. The amount of the fee is based on the specific development project and its total estimated cost. For example, a fee may be charged for each new housing unit that is constructed. The fee is meant to reflect the costs associated with the development that the local government will be required to cover. In North Carolina, developmental impact fees are generally used to fund improvements to schools, roads, and other public infrastructure that will be necessary to accommodate the population growth that comes with increased development activity. In theory, this fee is meant to ensure that developers are paying their fair share of the costs associated with their development projects.

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What is a developmental impact fee?

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