How can the effect of impact fees on affordable housing be mitigated?
Since affordable housing creates a demand for public facilities just as does market-rate housing, they also have an impact fee obligation. However, there are several ways to reduce the “impact” of impact fees on affordable housing. First, variable rates based on unit size or number of bedrooms can recognize the lesser impact of smaller units on pubilic facilities. And second, local government can make a policy decision to pay the impact fees for affordable units from other revenue sources.