Developer’s fees cut into profits; don’t dictate prices

Re: “ Fees add $68K to home’s cost, study finds ,” Sept. 15 news story

This is regarding Monday’s very detailed and informative article on fees charged by cities on new housing development.

There is almost no relationship between fees paid by housing developers and the prices they charge. Simply put, developers charge what the market will bear. So higher fees just reduce their profits. That’s why developers are always pushing for lower fees — they will make more money, plain and simple.

Cities should charge new development for the full costs of preventing increased impacts to existing residents. That includes tap fees adequate to maintain an adequate long term water supply in the face of global warming and the resulting inevitab

See Full Page