Harford County enacts legislation to increase impact fees on new home developments to address the growing costs of expanding school capacity.
This week, the Harford County Council unanimously approved legislation introduced by County Executive Bob Cassilly to increase impact fees on new home developments.
This move seeks to ensure developers contribute more equitably to the infrastructure demands their projects create, alleviating the financial burden on taxpayers and ensuring schools remain equipped to support a growing student population.
Impact Fees: A Tool for Sustainable Growth
Impact fees are one-time charges levied on developers to offset the costs of public infrastructure required to support new development.
In Harford County, these fees specifically fund school construction projects to accommodate increased enrollment, ensuring that new housing developments do not overwhelm existing resources. These fees address three key principles:
- Need: Fees established on a demonstrated requirement for new infrastructure.
- Benefit: Funds used for improvements that directly benefit the development.
- Proportionality: Fees reflect the fair share of costs attributable to the development.
Updating an Outdated System
Harford County first implemented impact fees in 2005, but the rates remained unchanged despite significant increases in school construction costs. The previous rates were:
- $6,000 per single-family detached unit
- $4,200 per townhome/duplex
- $1,200 for apartments and mobile homes
Over time, the stagnant fee structure created a funding gap. In 2023, the County collected $2.7 million in impact fees, while school capacity projects cost $6.8 million. Taxpayers were left to cover the $4 million shortfall from general revenue funds.
New Fees to Reflect True Costs
Under the legislation proposed by County Executive Bob Cassilly and passed unanimously by the County Council, the updated fees are:
- $10,000 per single-family detached unit
- $10,000 per townhome/duplex
- $7,989 for apartments and mobile homes
These adjustments bring Harford County’s fees in line with State law, which caps impact fees for single-family homes and townhouses at $10,000 per unit. While the increase significantly raises the fees, they remain competitive compared to other counties in Maryland, such as Anne Arundel and Frederick.
Data-Driven Recommendations
As previously reported on Conduit Street, the County engaged TischlerBise, a Maryland-based consultancy, to analyze the actual costs of school expansion. Their study recommended higher fees than State law currently allows:
- $12,819 for single-family homes
- $13,693 for townhouses/duplexes
- $7,989 for apartments
- $10,683 for mobile homes
While Harford County’s new fees fall below these recommendations due to legal constraints, the legislation includes provisions for annual adjustments based on rising school construction costs, as determined by the Maryland Interagency Commission on School Construction.
Benefits for Schools and Taxpayers
The increased fees will provide much-needed funding for critical school projects, including the new Homestead-Wakefield Elementary School, a combined elementary school and Harford Academy, and land acquisition for a new school in Aberdeen.
By aligning developer contributions with growth costs, the County reduces reliance on taxpayer dollars and ensures resources are available to maintain quality facilities.
County Executive Cassilly underscored the importance of this legislation, stating, “This legislation resets the fees charged to developers to more accurately reflect the true cost of adding space to existing schools or building new ones. It’s a victory for our taxpayers, students, and teachers, who deserve a supportive learning environment.”
Accountability and Future Planning
The legislation requires a comprehensive report by March 2027 to ensure the effectiveness of the updated impact fees.
This report will evaluate the fees’ impact on development, compare Harford’s fees with those of other counties, and detail how the County uses revenue to address school overcrowding. This measure ensures transparency and equips future elected officials with data to make informed decisions.
