Life is about to get even more complicated for community planners dealing with development. In the past, they could ask builders to help pay for almost any civic improvement. Now, however, state law is about to change as Sandy Hausman reports.
This spring, U.S. housing starts jumped more than 20%, and in communities with lots of development, city and county planners began the search for funds to accommodate more people. Virginia attorney Steve Blaine, who represents real estate developers, says new facilities are often needed as subdivisions spring from farmland or abandoned industrial property.
“Typically it would be road improvements," Blaine explains. "This entrance to a busy road would require some improvements to allow for traffic to come in and out, and cash contributions to make improvements to schools and fire stations would be kind of typical.”
Fast-growing places would also use the extra cash for other things, and some builders felt that cost of doing business was too high.
“An example, in Loudon County, for every single family home the investor had to contribute $60,000 to the locality," Blaine says. "Developers would sort of steer toward higher end luxury so they could pass that cost through more easily.”
But starting July first, builders can only be asked to pay for projects specifically tied to their development. Blaine says the legal change could be good for lawyers negotiating that vague language, and it might mean construction of more affordable housing.