The Regulatory Costs of a New Home
by: Jason DeLorenzo, GA Director Flagler HBA
Before even putting a shovel in the ground to start building 2014 Showcase, payments to local governments totaled $11,062.43. The regulatory fees, or soft costs, are broken into three categories: building permit fees, utility connection fees, and impact fees.
The Building permit fees are calculated based on the square footage of the home and total $2,127.25. The state of Florida requires all new homes to be permitted and inspected. The State allows a fee be collected by building departments to recover the direct and reasonable indirect cost to enforce the Florida Building Code. The Palm Coast Building Department is an enterprise fund with no property taxes used to provide the service. The customers pay for the service rendered through the payment of the fees. The building department provides plan review, issues a permit and will complete all required inspections during construction.
The utility fees in Palm Coast are unique to say the least. When ITT started selling Palm Coast lots they offered monthly payments. Often these monthly payments included a portion to be applied to the utility hookup fee. Because of this practice Palm Coast lots often have different amounts paid or credited towards hookup. The credited amounts can vary by several thousand dollars and should be considered when buying a vacant lot. The maximum utility connection fee for an owner occupied single family home can be as much as $7200. Our 2014 Showcase home was built in the Wild Oaks subdivision of Grand Haven. When built, the developer installed the entire utility infrastructure so those lots receive a credit against the required hookup. Showcase total was $766.16
Impact fees or facility fees are a tax collected on each home to offset the anticipated impact of the new residents. Regardless of square footage or cost of construction, impact fees for every new home in Palm Coast totals $8,169.02 and include $207.99 for fire, $1,343.98 for parks, $3,017.05 for transportation and $3,600 for school facilities. According to the 2012 National Impact Fee Study, Palm Coast has the 15th highest non-utility impact fees among cities in Florida. Impact fees are restricted funds and can only be used for the purpose collected.
Typical Palm Coast Residential Regulatory Costs
*Varies on size of home and features. Showcase fee used as example.
**May be reduced by fees previously paid.