Madison City Council considering fee that could cost some homebuyers more than $10,000

The council is set to vote on the fee next month.

Posted: Feb 17, 2020 7:53 PM
Updated: Feb 17, 2020 9:33 PM

Homebuyers in Madison could soon be forced to pay more than $10,000 on a one-time fee if they chose to buy a new home.

Madison's city council is considering an impact fee.

The Huntsville Area Association of Realtors said Monday this impact fee is not currently in place anywhere in North Alabama. It's only in place in two beach counties in the state.

Homebuilders said permits in the city of Madison already cost six times as much as in the county and Huntsville, and they're worried how this could impact future homes being built in the area.

“I think it is shocking, but Madison city is a beautiful city," said Kimberly Varnagatas who lives in Limestone county.

One Limestone county woman who spent the day at a park in Madison said she hadn't heard of the possibility of an impact fee.

The Madison City Council said it currently plans for the one-time fee for a single family home would cost the buyer nearly $10,985 on top of the purchase price of a brand new home.

Whenever you buy a home you’ve already been pre-approved with a lender for how much you can spend on a home. then you have an additional fee on top of that, because it puts you out of your price range on how much you want to spend on a home," said Realtor Zelda Friedman.

She thinks the fee would prevent many home buyers from being able to afford the area. she said she thinks the city could end up losing money.

"It could affect people moving into the area, they won’t move into the area, it will affect commercial builders as well not being able to move into the area because if these people were moving into the area. You wild have increased property taxes and sales taxes," she said.

At a meeting held Monday afternoon for realtors and builders to discuss the possible fee, and the association of realtors said the city believes the fee could bring in about $55 million dollars in revenue.

The council said it plans to spend the money on roads, parks, the fire and police departments. Varnagatas told WAAY 31 if she moved, it would be to Madison. She thinks investing in the city is worth the extra money.

"Today, I'm enjoying this park with my granddaughter so that would be worth it. Some people you know the quality of this city I think they are just willing," Varnagatas said.

Others, who didn't want to go on camera said they think the fee is too high and would drive people away.

Friedman said she hopes the council doesn't go through with this plan and evaluates other options.

"Other alternatives, I would hope so but as far as knowing exactly what they are, I don’t, Friedman added.

The Huntsville Association of Realtors said this proposed impact fee would be the second highest in the country. The highest being in a town in Colorado. The city is expected to vote on the fee next month.

Wednesday, February 26 the city has a work session planned to discuss the fee. The first reading of the plan is expected March 9th. The vote right now is planned for March 23rd.

Huntsville
Overcast
66° wxIcon
Hi: 82° Lo: 63°
Feels Like: 66°
Florence
Scattered Clouds
66° wxIcon
Hi: 82° Lo: 62°
Feels Like: 66°
Fayetteville
Overcast
64° wxIcon
Hi: 80° Lo: 61°
Feels Like: 64°
Decatur
Broken Clouds
65° wxIcon
Hi: 81° Lo: 62°
Feels Like: 65°
Scottsboro
Overcast
66° wxIcon
Hi: 80° Lo: 62°
Feels Like: 66°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 16530

Reported Deaths: 591
CountyConfirmedDeaths
Mobile2124112
Jefferson1712100
Montgomery154134
Tuscaloosa67813
Marshall6689
Lee53332
Franklin5147
Shelby48419
Tallapoosa41864
Butler39213
Chambers34924
Madison3184
Elmore3137
Walker2991
Baldwin2819
Etowah24411
Dallas2443
DeKalb2413
Morgan2311
Coffee2241
Lowndes22210
Sumter2136
Autauga2053
Houston1884
Bullock1833
Pike1790
Colbert1612
Russell1590
Marengo1556
Lauderdale1532
Calhoun1523
Hale1517
Choctaw1488
Wilcox1347
Barbour1321
Clarke1292
Randolph1257
Marion11911
St. Clair1161
Pickens1014
Talladega1003
Dale990
Chilton971
Cullman960
Greene924
Limestone870
Winston820
Covington771
Jackson752
Crenshaw722
Bibb711
Henry712
Macon712
Washington666
Blount581
Escambia493
Lawrence460
Geneva400
Conecuh351
Coosa351
Monroe352
Perry350
Cherokee342
Clay272
Lamar210
Fayette130
Cleburne131
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 21679

Reported Deaths: 356
CountyConfirmedDeaths
Davidson489460
Shelby4718107
Trousdale13934
Rutherford111622
Sumner85245
Hamilton71915
Bledsoe6081
Williamson53310
Putnam4615
Robertson4412
Tipton4303
Lake4130
Wilson3878
Out of TN3794
Knox3575
Bedford2744
Montgomery2613
Rhea1980
Hardeman1940
Madison1752
Loudon1370
McMinn13614
Macon1243
Cheatham1180
Cumberland1111
Dickson1100
Fayette1102
Bradley1081
Blount893
Maury810
Sevier762
Washington750
Coffee680
Unassigned670
Wayne630
Gibson611
Monroe612
Sullivan602
Hickman570
Lauderdale561
Dyer500
Franklin491
Greene482
Anderson391
Marion381
DeKalb370
Grundy321
Hawkins312
Haywood302
Smith301
Hamblen302
Henry300
Marshall301
White300
Obion281
Jefferson280
Carroll271
Meigs260
Overton260
Weakley260
Lincoln250
Lawrence240
Warren220
Cocke200
Carter191
Jackson170
Morgan170
Cannon170
Campbell171
Roane160
Crockett162
Perry160
Johnson160
Polk150
Sequatchie150
Henderson140
Humphreys131
Chester120
Fentress120
Giles120
McNairy120
Scott110
Stewart110
Hardin112
Claiborne90
Houston80
Benton71
Grainger60
Clay60
Decatur50
Van Buren40
Union40
Unicoi40
Moore30
Pickett30
Lewis30
Hancock10

 

 

Community Events