Dallas building fees could soon go up by 2,700%. Here's why.
DALLAS - It will likely soon cost more to build or renovate a home in Dallas as the city works to catch up on nearly a decade without any fee increases.
But industry leaders say if the city raises fees too quickly, it could have unintended consequences.
Some of the proposed fee increases are enormous, especially compared to Dallas suburbs, and industry leaders say that could cause a developer to potentially delay or move a project elsewhere at a time when affordable options are greatly needed in Dallas.
Travis Reynolds with the Real Estate Council warned Dallas City Council members that a proposal to increase building fees would trigger skyrocketing costs that he calls unprofessional.
"No business would ever change its fee structure three times in a six-week period," he said.
Davide Lehde with the Dallas Builder's Association agreed. DBA represents 10 counties in the region with Dallas the flagship city.
Under the proposal, the cost of a multi-family permit would go up from $225 a unit to $652. That amount would be higher than surrounding cities.
"It’s $100 higher per unit than other areas of the region," Lehde said.
And the burden on single-family homes for plan reviews would be even more out of proportion.
Certificates of occupancy and excavation fees would also go up under the plan.
Councilman Paul Ridley recommended delaying a decision about the fees by two months. But he warned the city is losing $20 million a year by not recovering its costs, which appear to be primarily tied to staffing.
"I'd like to see the decision implemented as soon as possible so we stop bleeding money by fees that are too low," he said.
Councilwoman Gay Donnell Willis questioned why some of the fees are set to jump by such a huge amount.
"When I see some of these increases to the tune of 2,700%, I see what the industry is very concerned," she said.
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Dallas City Manager T.C. Broadnax agreed with the decision to delay the vote while staff calculates how to phase in the new fees over time. But he says the city must start recovering its costs.
"Costs have gone up significantly over nine years, especially the last two," he said. "It's a simple math game of how much do all of your staff cost?"
Broadnax did not talk about why the city has waited nearly a decade to adjust its fee structure.
The city council is expected to vote on the new fee structure at its March 27 meeting.