How significant are developer "impact fees"

Just out of curiosity for you developers out there, how significant are development impact fees as a % of total project costs. Asking because I noticed Salt Lake City just slashed em' across the board; office saw a 81% decrease (woah?).

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They can be modest or enormous, it depends entirely on the local jurisdiction. For example, LA is likely going to implement a $15/PSF affordable housing linkage fee that is going to crush the cost basis for most developers. In Arizona, those fees are much more manageable. I would estimate they range from less than 1% to 5% of total costs depending on where you are.

 

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