House Panel Rejects Proposal to Revise Home Builder Fees

Officials in Northern Virginia said they were relieved by the decision of the House rules committee, which voted unanimously to carry the bill over for a year. They said it would have crippled their ability to manage growth and build enough roads, parks, schools, fire stations and other amenities in their communities.

"We are not in opposition to the concept of moving away from cash proffers, but the dollar levels of these caps" are too low, said Roger Wiley, an attorney for the Coalition of High-Growth Communities, a group of 25 of the state's fastest-growing communities.

Scott K. York (I), chairman of the Loudoun Board of Supervisors, estimated that the tax rate in his county would have risen by as much as 8 percent to account for the lost developer money if the legislation had gone through as proposed. The county collects an average of $47,000 for each new home, the highest rate in the state.

But York said he may support some version of an impact fee because the proffer system encourages "backroom deals" between developers and government officials. Local officials are often tempted to approve bad development projects in exchange for money for libraries or recreation centers.

"The merit of a project should be based on the land use itself, not some kind of poker game where there are bargaining chips," York said.

The home builders acceded to the compromise in part because House Speaker William J. Howell (R-Stafford) had indicated he would not support the change this year.

Howell agreed to take another look at the measure if local governments have more input during the next year. He also said he will write to local governments and urge them not to increase the proffers they charge to developers until a compromise can be reached next year.

In addition, the home builders are pushing for legislation this year that would freeze a road-impact fee approved last year as part of the state's $1.5 billion transportation package, preventing any new communities from adopting the fee before July 2009.