Owner building a home should be aware of all fees due
Mr. Feichthaler: I purchased a lot last year in the Yacht Club area and I am in the process of building my house. Since this property is in the Yacht Club, where water and sewer were installed many years ago, there are no assessments. I assume I only need to pay an impact fee? I also was thinking about just having a well, which may save me some money.
– Joanne D.
Dear Joanne: Historically, when someone would build in a non-assessment area (like the Yacht Club), the owner would only have to pay the impact fee for water and sewer. However, a few years ago during the economic downturn, the city initiated a program where money is collected from the owners of vacant land when they decide to build where water and sewer facilities are already installed, but have no assessment. This is called “Contribution in Aid of Construction.” Unlike an assessment, the CIAC is not due until permits are pulled for construction. If you decide to never build on a property, the CIAC and impact fees are never due. Assessments, on the other hand, constitute a lien on the property whether a building is constructed or not.
You should also be aware that you will be responsible to hire a contractor to make the connection to city water, sewer and irrigation. It is a good idea to choose a contractor that has experience in connections. Although very rare, a few houses have been connected to the irrigation water rather than potable water in the past.
Finally, when an owner builds in an area with water and sewer services, it is mandatory to hook up to and pay for utility connections. Even if you decide to drill a well for irrigation, the irrigation impact fees and CIAC will be due. Before you contract to purchase any property on which you intend to build, always do research or hire professionals to advise what may be due in the future.
Eric P. Feichthaler has lived in Cape Coral for 27 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through his chairmanship of the Harney Point Kiwanis Club KidsFest, which provides a free day of fun and learning to thousands of Cape Coral families, and funds numerous scholarships. He has been married to his wife, Mary, for 13 years, and they have four children together. Recently, he earned his board certification in Real Estate Law from the Florida Bar. He is also a Supreme Court Certified Circuit Civil Mediator.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.