Builders Group Backs Annual Fee Increase

The Building Industry Assn.’s board of directors has unanimously endorsed an annual developer fee increase enacted by the public agencies building the state’s first toll roads.

The BIA, an organization that represents 30,000 to 40,000 members of the real estate community, including home builders, developers and others, had initially balked at the increase, which averages 2.4%. But the group, whose endorsement is advisory only, approved the hike Monday after a presentation by tollway officials.

“Once the increase was put into context, it was approved,” said Christine M. Diemer, the BIA’s executive director. The tollway officials’ explanation “gave us a major comfort level in terms of what was going on.”

On June 13, the boards of the tollway agencies voted unanimously to raise the fees 2.7% for the San Joaquin Hills Transportation Corridor and 2.2% for the Foothill/Eastern Transportation Corridors.

Last month, the tollway board of directors increased development impact fees for new single-family homes ranging from $55 to $81 per home and from $32 to $47 per new multifamily home. The fees now range from $2,363 to $3,594 per single-family home and from $1,379 to $2,098 for multifamily units.