Trying to follow the logic of Orange County commissioners as they adopt policies designed to “help” people makes me dizzy. The common refrain from the board is that the county needs to be more welcoming to low- and middle-income families. Current high housing costs prevent many folks from settling in the county, particularly the Chapel Hill and Carrboro areas.
Board members regularly wring their hands over this reality, and continue to hope the board’s “affordable housing” push will somehow overcome its own regulatory regime of land-use regulations. These regulations help create the high land and home prices in the first place.
Today comes word that the board has voted to increase the impact fee on new residential home construction. This policy, of course, will increase the price of new homes and set in stone yet another reason for homebuilders to avoid Orange County. From the News & Observer: (emphasis is mine).
The new fees would raise the fee contractors pay to build new single-family homes in Chapel Hill and Carrboro by 38 percent to $6,092 on Jan. 1. A year later, the fee will go up again, this time to $7,616. Over two years, that’s a 73 percent increase.
In Orange County, there will be no increase to the $3,000 fee on single-family homes next year. But in 2010, it will rise to $3,749, a 25 percent increase.
Commissioners approved the fee changes reluctantly, acknowledging the added stress they place on homebuilders.
Exactly how will this price hike help the “affordable housing” problem the commissioners say they are so concerned about? It won’t, of course. It will make matters worse.
I predict that like clockwork, once these hikes are in place, the commissioners will again wring their hands about “affordable housing,” and no dout they’ll ask for input from well-intentioned, but misguided, groups like this one. Unfortunately, none of those involved in the current discussion seem willing to confront the underlying issue: the county’s incredibly high tax burden and muscular regulatory structure are the problems.
Meantiime, the county’s property revaluation is set to take effect in January. Average increase since 2004: 22 percent.
My prediction: commissioners will soon tell taxpayers that in light of the property value increase, they would absolutely love to lower the tax rate in order to keep things revenue neutral and stabilize tax bills, but they can’t possibly do it because of all the unmet needs – including affordable housing.
