Fort Mill School District Seeks Major Hike in Impact Fees for New Home Construction

Fort Mill School District Proposes Significant Impact Fee Increase

Fort Mill, South Carolina – The Fort Mill School District is preparing to request a sharp increase in impact fees for new home construction, with fees potentially rising to nearly $30,000 per new home and approximately $20,800 for apartment units. This would mark the first adjustment of these fees since 2018.

Who is Involved?

The Fort Mill School District is the largest school district in York County, currently serving over 18,000 students. The district plans to approach the York County Council regarding the new fee structure, which will affect new homes and apartments built within Fort Mill, Tega Cay, and surrounding unincorporated areas.

What is Happening?

If the proposal is approved, the impact fees would increase by about 63% for homes and 73% for apartments. Currently, builders pay more than $18,000 per home and about $12,000 per apartment unit for construction permits within the district.

When Will This Take Place?

The York County Planning Commission is scheduled to hear details regarding the proposed fees on December 9. Following this meeting, the York County Council will make the final decision.

Where Will the Fees Apply?

The fees will be applicable in Fort Mill, Tega Cay, and any unincorporated regions serviced by the Fort Mill School District.

Why is This Fee Being Considered?

The school district’s request for a higher impact fee is based on projections indicating an influx of 5,221 new students by 2035. State law mandates a new study for school impact fees, which calculates the costs based on current facilities, student number, and expected growth.

Background of Impact Fees

Impact fees are charged to builders to help fund school construction, ensuring that new developments contribute to maintaining educational facilities as enrollment grows. These fees are incorporated into the overall price of a home, meaning new homeowners may not directly see these charges, but they ultimately impact overall housing costs.

Controversy surrounding impact fees has existed for years, with builders arguing that they unfairly bear the financial burden of school funding, which could also negatively affect affordable housing in the region. In 2018, the York County Council approved the existing fees requested by the district, but other local school districts have faced challenges in implementing similar fees.

Potential Impact on Housing

Local builders have expressed concerns about the proposed fee increase, suggesting it may lead to reduced housing quality and increased costs. Mike Pruner, a local home builder, stated, “Putting it 100% on the back of the home builder industry is not fair.” He fears that rising fees might affect the affordability of homes, particularly for lower-income families, including teachers, who are unable to find suitable housing.

Future Funding Plans

The money collected from impact fees has been significant; since 2018, the Fort Mill School District has collected approximately $70.4 million. These funds contribute not only to previous projects but also to new developments, including a $67 million elementary school currently under construction.

In addition to impact fees, residents recently voted for a $204 million bond to support school growth and improvements. The district anticipates that even more funding will be required to address educational needs over the next decade, with estimated upgrades costing nearly $700 million.

Conclusion

The request for increased impact fees has spurred a complex discussion about funding education while balancing the needs of builders and prospective homeowners. As the York County Council prepares to review the proposal, the future of housing and education funding in Fort Mill hangs in the balance.