INSIDE TUCSON BUSINESS: Monday, July 9, 2007
SAHBA says fees boost Tucson 's sprawl
People are moving farther and farther out, placing more stress on highways and other critical infrastructure, and the Southern Arizona Home Builders Association is blaming municipal and county officials for paving the way.
Rising building permit and impact fees are making it harder for families to buy a new home in Pima County. So, they're moving on, transforming communities like Tubac, Benson and Red Rock into the next great growth areas.
“If their strategy is to move people out, it's working,” said Roger Yohem, vice president of the home builders association, “but if they're looking to create affordable housing and an infrastructure solution that will work for them, over the long term, this isn't the way to do it.”
Over the last several years, the county and the municipalities of Tucson, Sahuarita, Oro Valley and Marana have been on a spree when it comes to residential construction fees. In the process, they've added from $20,895 to $32,953 to the price of a new home.
Up from an average of $16,166 in 2005, Yohem said, “these taxes and fees have become an obstacle for home buyers.”
The taxes have also become a reason to drive to Cochise, Santa Cruz and Pinal counties to purchase a home.
Yet, governments still aren't willing to see this as a problem. During the last decade, “they've become addicted to these fees as a way to pay for city and county services,” he said. The more they get, the more they want.
At the same time, governments recorded the steady decline in home building near existing communities. Making it even worse, there's been an explosion of regulations, “which isn't the way to support infill,” Yohem said.
It's a waste, he said.
“There's lots of infrastructure in the urban core that's not at capacity, and there's plenty of vacant lots that could be developed into 10-15 home subdivisions,” Yohem said. “We have plenty of members who'd be happy to do it, but the costs and regulations make it impossible. So, instead, they build farther out, because that's the only place they can do it.”
As development moves outward, so does retail. Ultimately, offices will follow, “and that will affect the municipalities' revenue.” At that point, Yohem predicts they'll reconsider new home taxes and fees, but it might be too late.
“Until it affects their pocket book, this issue won't get their attention,” he said. When it does, the momentum may be irreversible. “That's the problem with regulation and the cost of doing business.”
Yohem said something has to change.
“If the goal is to build livable cities, then make it possible,” Yohem said. “Otherwise don't blame the builders for sprawl.”
Philip S. Moore, Inside Tucson Business, Contact Philip S. Moore at at (520) 295-4238 or at pmoore@azbiz.com .