Dover Planning Board Votes to Eliminate Impact Fees

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DOVER, NH — The Dover Planning Board voted unanimously on Tuesday to set developer impact fees to $0, marking a significant change in the city’s approach to managing the costs associated with new developments. The board also directed city staff to begin drafting an ordinance revision that would eliminate the language of impact fees from the city's code.

The decision follows ongoing discussions by the Planning Board, which has been reviewing the issue since February 2024. Impact fees have traditionally been charged to new residential and non-residential developments as a means to fund the expansion of public services, such as schools, roads, and parks. These fees were intended to address the increased demands that come with growth and development, but state law limits how these funds can be used.

The vote to eliminate these fees is expected to have a significant impact on the city’s housing market. The City Council’s Ad-hoc Committee to Address Community Housing Needs has been reviewing how impact fees affect housing prices, and this decision is seen as a step toward reducing the financial burden on developers, potentially making housing more affordable.

City Councilor Fergus Cullen, who represents the City Council on the Planning Board, made the motion to set the fees to $0. Speaking in an update to the City Council on Wednesday, Cullen said, “This is a significant signal to developers that Dover is taking a real serious step to making it easier for developers to add housing to our community and lowering the cost thereof.”

As the city moves forward with this decision, city staff will now begin drafting the ordinance revision. This revision will be reviewed in future meetings and could lead to the permanent removal of impact fee language from Dover’s code.

For now, developers and city officials alike will be watching closely to see how this change influences future development and the broader housing market in Dover.

Information for this article was sourced from the City of Dover, NH.