Eastern Idaho Home Builders Association files lawsuit against City of Idaho Falls over impact fees – LocalNews8.com

IDAHO FALLS, Idaho (KIFI) – The Eastern Idaho Housing Builders Association has filed a lawsuit against the City of Idaho Falls to overturn the city’s fee ordinance.

The organization claims the ordinance is unlawful, excessive and harmful to local businesses and residents by driving up costs and making it more expensive to live and work in Idaho Falls.

The City Council passed the impact fee ordinance on June 1, 2022 and then amended it in March 2023. The fees are collected on building permits and used by the city to finance infrastructure projects, including roads, parks, public safety facilities, etc.

“These impact fees are not just a burden on developers; They have far-reaching impacts on our entire community,” the EIHBA Legal Action Committee said in a press release. “Higher development costs lead to higher rental prices for companies, which then have to increase the prices of goods and services. This affects everyone – from the cost of food and dining to housing affordability.”

The EIHBA said the regulation does not meet the statutory and constitutional requirements of Idaho law. The lawsuit says the city’s studies justifying the fees are flawed and that the fees themselves are not directly related to the actual impact of new developments.

“Impact fees make it more expensive for new businesses to open and for existing businesses to survive,” the committee added. “This not only impacts the diversity and vibrancy of our local economy, but also results in higher prices for essential goods for our residents.”

You can read the full press release below.