Lane County will soon decide whether to increase building fees by about 21% over the next three years.
The proposed fee hike is meant to close a $1.2 million budget deficit in Lane County’s Land Management division, which handles land and zoning issues, as well as building safety, permits for construction, and housing projects.
The 21% increase is slightly lower than what the county originally thought it would need to break even. Commissioners have also said they preferred a three-year plan over another option they previously considered, which would have increased fees in 10.5% increments over two years.
Mike Dotson, president of the Western Oregon Builders Association, said he appreciated the county’s efforts to make the increase gradual, but said it will make housing more expensive.
“All of these costs will likely be borne by the consumer,” Dotson said. “Builders have to cover their costs, they have to make a bit of a profit to stay in business, as does every other business.”
Dotson said builders in the association have been frustrated with long waits for permits over the last several years, but had appreciated the county’s efforts to become more efficient and improve processing time.
In a presentation to county commissioners last week, Land Management Division Manager Keir Miller said his department is required to be self-sufficient, unlike other divisions at the county, which rely on property taxes.
He said the county reduced its staffing to the bare-bones level after the 2008 financial crisis. It has started to rebuild recently, but has struggled to meet the public’s needs with its current funding.
He said in previous years, in both hot and cool markets, the county skipped fee increases out of fear of impacting the housing market.
“The concerns over affordable housing, we recognize that,” Miller said. “It’s never a good time to increase building permit fees.”
The proposal going before commissioners will include exemptions for emergencies, and housing that’s usually affordable to low-income people, such as dwellings in a manufactured home park.
If commissioners decide to not increase fees, the planning department may have to lay off code enforcement officers and will likely take longer to process and issue building permits, according to documents prepared by the county in advance of the meeting.
The commissioners could potentially decide the fee increase, which impacts unincorporated areas, during their April 29 meeting.
