City of Atlanta Impact Fee Program
By Tiffani Cope, Impact Fee Coordinator
New Impact Fees go into Effect September 1, 2021
What are Development Impact Fees?
Development impact fees are a one-time fee assessed by a local government on a new or proposed development project, to pay for all or a portion of the costs of providing public services to that new development.
New development impacts the infrastructure in which the city has invested, and the city charges a fee to help offset these impacts. The City then uses the fees collected to fund projects that help mitigate impacts to the infrastructures of transportation, parks, police, and fire. Collecting impact fees also helps to relieve taxpayers from the burden of developmental costs.
Atlanta’s Impact Fee Program
Atlanta’s Development Impact Fee program was established in 1993. On March 1, 2021 after 28 years, Atlanta City Council adopted the updated impact fee study and associated ordinance which goes into effect September 1, 2021. The updated program makes the following key changes:
Updated fee levels from 1993 to 2020 costs
o For the past 28 years, Atlanta’s fees were well below our peers and other neighboring jurisdictions. The new fee schedule brings fee levels in line with current conditions but also allows Atlanta to remain competitive in attracting new development.
Applicants who submit an accepted permit application prior to September 1st will be vested under the current fee schedule. Permit applications accepted after September 1st will be subject to the increased fees.
Implemented service areas for Transportation
o Transportation service area was reduced from Citywide to the three smaller service areas; North, South and West to align with Parks.
Created uniform fees City-Wide
o Transitioning from fees based on service area.
Expanded the scope of the usage of funds for Parks and Transportation (where permissible under the Development Impact Fee Act)
o Park impact fees can now fund multi-use trails and park facilities such as gymnasiums and playgrounds. (Example: Kathryn Johnston Park playground)
o Transportation impact fees may now fund multimodal complete street projects including bicycle and pedestrian facilities. Example: Ellsworth Industrial complete street project to allow for bicycle and pedestrian access.
Updated the Affordable Housing & Economic Development exemptions
o Aligns with Invest Atlanta’s 2020 Economic Development an Economic Mobility Strategy.
Developed annual reporting that is more public friendly for improved outreach and transparency
Role of DCP
Prior to being funded with impact fees, projects must first qualify to be included on the Capital Improvements Element (CIE) which is comprised of the Annual Financial Report and the Schedule of Improvements. The Annual Financial Report provides a summary of impact fees collected, encumbered, and used by category of public facility and service area of the last completed fiscal year. The Schedule of Improvements identifies capital projects to be financed in part, or in whole by impact fees, over the next five-year planning horizon. Some of our projects funded by impact fees are the Peachtree Hills Park, MLK Corridor Improvements, 15th Street Extension, Zone 3 Police Precinct, and Atlanta Fire-Rescue Station 7.
For the City of Atlanta to collect development impact fees, the CIE must be updated annually and adopted by City Council no later than October 31st of each year.
The Department of City Planning (DCP) coordinates this process to ensure timely adoption by collaborating with other City Departments to prepare the Schedule of Improvements. Once the Schedule of Improvements is complete, DCP facilitates the process of transmitting the CIE to the Atlanta Regional Commission and the Department of Community Affairs for their review and approval. Once approved, DCP then manages the progression of the CIE through the legislative process for final adoption of the CIE ordinance.
For more information regarding impact fees, please visit https://www.atlantaga.gov/government/departments/city-planning/2020-impact-fee-update