Impact fees are charges assessed by local governments on new development in order to offset the costs of additional infrastructure and services that are needed as a result of the new development. These fees can be used to pay for things like roads, schools, parks, and public utilities, and are typically based on the size and type of the development. Developers usually pay these fees as part of the permitting process, and they are intended to ensure that the costs of growth are shared fairly among all residents of a community.

Real Estate Glossary | What is Impact Fees??

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