Hawaii Revises Impact Fees to Benefit Local Districts

WAILUKU, Hawaii — Landowners seeking to build new housing in Maui will soon be required to pay new "impact fees" for the construction of new school facilities directly to the local districts rather than through the state or county. 

The State Department of Education announced a new law that requires the designation of impact districts in high growth areas across the state and sets a formula for calculating the amount of land and fees applied to each new single-family and multi-family unit built, including houses built by individual landowners on individual vacant lots.

Land and fees collected will be used for new schools and facilities to accommodate students residing in the new residential units, a shift from allowing developers to pay the fees through the county or state.

Single-family impact fees per unit range from $5,373 to $5,778. Multi-family impact fees per unit range from $2,055 to $2,451. Maui is the first in the state to have the new fees in place, with West Hawaii expected to follow suit.