Effects of proportionate-share impact fees

When it comes to paying for the significant costs of growth, local governments throughout the United States are usually the first line of financing. Yet because of a variety of factors, existing tax, fee, and interjurisdictional transfer revenues may not be sufficient. Many hundreds (if not thousands) of communities rely in part on proportionate-share impact fees to provide facilities concurrent with the effects of growth. Impact fees have numerous detractors, many of whom worry about their effect on affordable housing, economic development, and development patterns. A disparate literature has emerged addressing each of these concerns. This article synthesizes current knowledge about the market effects of proportionate-share impact fees and finds that for the most part, they facilitate development in several important ways. Policy implications and guidance for future research are presented as well.