Key facts
- Manatee County, Florida, has significantly increased impact fees for new developments.
- The fee hikes, which took effect in September, range from 69% to 169% per unit.
- Developers argue these fees undermine the financial incentives of the state's Live Local Act, which aims to encourage housing development.
- A lawsuit has been filed by developers against the county, and the county has joined a suit challenging the state law that limits fee increases.
- The state has withheld $3 million in funds from Manatee County due to the fee dispute.
Manatee County, Florida, has dramatically increased development impact fees, creating uncertainty for new housing projects, including those under the state's Live Local Act. The county's decision to raise fees to the state maximum, citing the need to fund infrastructure for growth, has been met with legal challenges from developers and a warning from the state.
The fee hikes, which took effect in September, saw increases ranging from 69% to 169%, with some categories reaching $33,875 per unit. Developers argue these fees offset the financial incentives provided by the Live Local Act, which is designed to encourage the development of affordable and workforce housing by preempting local zoning regulations.
Milhaus, an apartment developer, has a 231-unit project under construction in Manatee County under the Live Local Act, but future projects face significant financial hurdles. Rangewater Development also has a 300-unit project underway. The legal battles include a developer lawsuit arguing the fee increase violates Senate Bill 180, which limits such increases in hurricane-affected areas, and the county's own challenge to the constitutionality of that state law. The state has withheld $3 million in funds from Manatee County due to the dispute.
Officials acknowledge a learning curve with the Live Local Act, which bypasses traditional zoning hearings. However, the primary obstacle now appears to be the increased impact fees, which could make Live Local projects, and indeed all development in the county, less feasible if the county prevails in its legal challenges.