The Eastern Idaho Homebuilders Association is a non-profit organization that is made up of builders, developers, realtors, trade professionals, supply companies and other industry professionals. As an association it is our goal to advance and maintain strong community relationships and interactions with those organizations, companies, individuals and local and state government looking to make Eastern Idaho one of the best places in the country to call home. The association has over 140 members and an active board of members who meet monthly.
Throughout the course of this latest round of local elections, there has been a lot of talk about Impact Fees and development by the community. There has also been a lot of misinformation about what impact fees are and what those fees collected should be used for.
It should be noted that the EIHBA and local builders and developers are not against impact fees all together. Our association has observed growth in eastern Idaho and recognizes that impact fees can help maintain service levels.
Impact Fees are a multi-layered subject that requires more than a basic understanding of Idaho Code and state law. (Idaho Code 67-8201). The basic premise of Impact Fees is to allow city and local governments to collect fees specifically from new construction to help in the management of growth within that municipality. There are specifically four categories that these funds can be used for: Fire/EMS, Police, Parks and Transportation. As an association we are in favor of making sure that the levels of service for existing residents be maintained. We understand the need and desire for citizens to be able to expect that the growth of Idaho Falls, which according to their own population numbers is 1.5% annually, not diminish the level of service that they have come to expect.
To collect impact fees, the city must hire consultants to assess services and create a Capital Improvement Plan with projects linked to growth. The city of Idaho Falls paid Tichler Bise to do this study and generate the Capital Improvement Plan with input from each of the department heads within the city. The Capital Improvement Plan, along with a maximum supportable fee schedule is generated. As part of the process, an Impact Fee Advisory Committee is established to discuss the study and parse through all the information and give recommendations to the city council. Council can take those recommendations into consideration when determining the writing of the new city ordinance which will set the impact fees in place.
An interesting part of the first process when the city of Idaho Falls started looking at impact fees was that there was little to no communication that the city was even looking at impact fees. As an association, we have quarterly meetings with leaders from the City of Idaho Falls, Ammon and Bonneville County. It is a way for the building community to let these jurisdictions know what is going on within the building and development community and the city officials let us know what items they are looking at in the city that affects us. The meetings were usually very constructive and kept the lines of communication open between the participants. The fact that the city of Idaho Falls didn’t feel the need to let our representatives know about the possible additional fees was questionable.
It should also be noted that we as an association were asked if we would provide a member that would be interested in being on the impact fee advisory committee. One of our members volunteered to be on that committee. Through that appointment, we were able to be kept up to date on the Capital Improvement Plan, and the fee structure changes that the city was looking at. Once the Capital Improvement Plan was released and the fee schedule introduced, multiple members of the building and development community met with city officials to voice some of our concerns about some of the costs and the projects that were called out that were to be paid for by growth. In a Capital Improvement Plan, the collected fees are only to be used for growth related items, not to correct existing deficiencies. There were some disagreements about the list of projects and cost estimates provided directly by city officials.
One of the main disagreements was with the “maintaining existing levels of service” descriptions. That seems to be a term that is arbitrary and not well defined. As an example, based on the population, is Tautphaus Park/ Community Park the standard level of service or is another less used smaller park like Bel-Aire Park/Reinhart Park. The truth is it is probably somewhere in the middle. Again, as an example, on the new Capital Improvement Plan that the city is looking to adopt, there is over $8 million in spending just on park improvements at Sandy Downs. We would urge you to look at the new capital improvement plan and research the new spending associated.
As an association we don’t support the changes to the Capital Improvement Plan, or the updated fee schedule. Some of the main changes to the updated Capital Improvement Plan are:
1. They took out the language for a development or housing structure to apply for an affordable housing waiver. If a housing development goes through the proper channels and applies for affordable housing at a state or national level, that project can no longer qualify to get a reduction in impact fees to keep rent or mortgage prices lower. The guidelines are stringent, but the city has removed that from the updated ordinance.
2. The fee schedule has been changed from a per door fee schedule to a square footage fee schedule. There is a disproportionate share of fee increases to single family residences vs multi family structures. They are assessing the fees based on both finished and unfinished square footage. So, if you are buying a 1500 square foot house with an unfinished basement, that property will be assessed the fee as a 3000 square foot house. We disagree with the premise that an unfinished basement has a direct impact on the growth-related costs.
3. There is now no differentiation between multi-family housing and single-family housing. Based on the updated fee schedule, the smaller multi-family housing units will more than likely get a reduction in the cost of their fee’s vs what a typical single family residence will pay.
4. The cost of some of the projects that fees are being collected on seems over-inflated. There have been no bids provided for the work, and it is the departments that are requesting the funds which are providing the cost estimates for the projects. In our opinion, these are just numbers that are provided, without solid backing yet those are the numbers used in the calculations when figuring out the Maximum Supportable Fee.
5. There is a cost to provide 11 new vehicles to the police departments. We don’t disagree with growth comes the need for more equipment. Our disagreement with this cost is that, according to the law, a Capital Improvement Asset needs to have a lifespan of at least 10 years. We have argued that the police cruisers don’t qualify to have a 10-year lifespan.
Again, we want to make sure that the community understands that we are not completely against impact fees. We want them to be collected and distributed in a responsible manner with new construction paying their fair share for growth related items. New construction should not be responsible for the shortcomings of government budgets or lack of foresight in growth and development. The EIHBA did commission a third party to analyze the original Capital Improvement Plan, fee schedule and list of projects after impact fees were implemented in 2022. They analyzed the plan and did their own analysis based on state law and current levels of service at the time the ordinance was passed. Our consultant determined that the amount of fees that could be collected were significantly lower than what the city was charging the community. We have tried to mediate with the city and come to some type of compromise, but those efforts have been unsuccessful.
The Eastern Idaho Home Builders Association is a local construction industry group committed to helping Idaho Falls and nearby areas prosper through responsible policy. We will fight to keep housing affordable for the next generation, and generations to come. City Council is going to hear public comments on the updated Capital Improvement Plan and changes to the ordinance on December 11, 2025. We urge you, whether you are for or against the updated changes, to make your voice heard.
Notice of Public Hearing: A public hearing pursuant to Idaho Code § 67-8206(3) and (5) will be held for consideration of the Capital Improvements Plan, Development Impact Fee Study Update, and amendments to City Code Title 10, Chapter 8, Development Impact Fees. The public hearing will be held at the City of Idaho Falls Council Chambers, in the City Annex Building, located at 680 Park Avenue, Idaho Falls, Idaho at 7:30 p.m., on Thursday, December 11, 2025. All interested parties are invited to appear and provide comments. Any member of the public affected by the capital improvements plan or amendments or the proposed amendments to City Code Title 10, Chapter 8, Development Impact Fees shall have the right to appear at the public hearing and present evidence regarding the proposed capital improvements plan or amendments or the proposed amendments to City Code Title 10, Chapter 8, Development Impact Fees.