Milford City Council will review impact fees for ADUs similar to this one recently constructed
As more homeowners consider building accessory dwelling units (ADU) on their property in Milford, the city is grappling with the fees charged for the tiny cottages. Brad Dennehy spoke to council at a recent workshop about the high fees he is incurring building a cottage for his mother-in-law.
“I am removing my city hat tonight and putting on my resident hat,” Dennehy said, referring to his role as director of the city’s parks and recreation department. “We’re building a small house for my mother-in-law as she is dealing with some medical issues, can no longer drive and we’ve got to keep an eye on her.”
According to Dennehy, if he builds a 600 square foot mother-in-law cottage or built a five bedroom, five bathroom house, he would pay the same impact fees. He pointed out that Milford and the state of Delaware are new to ADUs, but that the purpose of them was to create more affordable housing.
“I commend Rob on the work he has done on this, but I think we can be at the forefront of this, looking at affordable housing,” Dennehy said. “Between a variance survey, conditional use and architect fees, I am into it for $6,500 without even going into the permit fees.”
Dennehy stated that after being with the city as long as he has, he understands the importance of impact fees, but there is a disparity if building a 600 square foot building has the same impact as a five bedroom home.
Planning Director Rob Pierce provided an overview of what fees were required under the current regulations. Currently, impact fees for a typical single family dwelling are $12,569 with 25 percent of the fee Kent County sewer impact fees which the town cannot waive. The city impact fees are over 48 percent of the fee and include water, sewer and electric. There are also fees for the fire company and municipal enhancement fund as well as fees for water and electric meters.
“There are ways to lower these fees, for instance if you do not need a separate electric or water meter as you are tying into the existing structure, the fees would be lower,” Pierce said. “We have also had questions about this from developers who are building multiple unit apartment dwellings. They want to know why they pay the same fees for a one-bedroom as they do for a three-bedroom.”
Councilman Dan Marabello asked Pierce what the definition of affordable housing was at the state level. Pierce stated that it was usually based on income. Marabello pointed out that meant what one person perceived as affordable another would find expensive. Councilwoman Madula Kalesis asked if there were any guarantees that the ADUs would be rented at an affordable rate.
“In my opinion, we’re arguing affordability and that is an important feature for ADUs,” Mayor Todd Culotta said. “The west coast is way ahead of us on this. The problem I have is that in Milford we allow ADUs but make it a rule you have to live in one of them. We can as a council change that but are we making it difficult for people to construct them due to the fees.”
Culotta reminded council that some of the fees, like the Kent County sewer fees could not be waived or adjusted. Those are pass through fees that must be paid. Culotta suggested allowing more property owners to simply split electric and sewer from their current home rather than charge for connecting to the main lines. Kalesis suggested creating an ordinance designed for ADUs.
“That’s actually not a bad idea, so we could say anything less than 600 square feet we waive or reduce the city impact fees,” Culotta said. “I would also like to see the restriction that you have to live in one removed as we are limiting the flexibility of ADUs.”
Councilman Jason James asked if there was information on what it cost to compensate the city for the impact the ADUs would have on the system. Pierce stated that he would need to talk to the public works department for that information.
“Would the city consider something related to personal family use, for instance, an elderly relative that requires care or older children coming home from college,” Nadia Zychal asked. “I think this should be a waiver or discount.”
Culotta asked if a property owner with an ADU sold the property, would the ADU permission go to the new owner. Pierce stated that the deed restriction would carry to the new owners if they wanted to keep the ADU.
Pierce will review the current fees and return to council with recommendations that may make ADU’s more affordable.
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