Street Impact Fee Program
The Street Impact Fee program is the culmination of a multi-year analysis and calculation of the costs to fund roadway infrastructure to meet the needs of new development. City Council adopted the Street Impact Fee Study Report, linked below, which provides the City Council with the maximum allowable roadway impact fee that could be assessed by the City of Austin, complying with Chapter 395 of the Texas Local Government Code.
Following public review, discussion and a public hearing process, the City Council determined an amount to be assessed and adopted ordinances in December 2020 to create the City of Austin Street Impact Fee program.
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Understanding the Street Impact Fee
- What is a Street Impact Fee (SIF)?
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Street impact fees help fund roadway capacity projects necessitated by new development. Impact fees are meant to recover the incremental cost of the impact of each new unit of development creating new infrastructure needs.
- Who must pay a SIF?
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A Street Impact Fee applies to any increased entitlements, as part of a redevelopment project, that generate at least 10 trips in the PM Peak hour. This is the case when there is a structure on site that is currently (or was recently) generating trips. For sites where development has never occurred, a SIF will be calculated regardless of the trip generation.
- When is a SIF collected?
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The fee is collected at the time of building permit issuance. A building permit shall not be released if an applicable street impact fee is unpaid.
- How is a SIF determined?
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A street impact fee is calculated based on zoning entitlements for a property, and the rate varies based on the property’s location. On December 10, 2020, Austin City Council adopted the Street Impact Fee Study, a multi-year analysis and calculation of the costs to fund roadway infrastructure required to meet the needs of new development. The Street Impact Fee Study provides the City Council with the maximum allowable roadway impact fee that could be assessed by the City of Austin, complying with Chapter 395 of the Texas Local Government Code.
Those maximums vary by Service Area, which state law limits to be six miles or less in length. In Austin, this restriction necessitated the creation of 17 separate Service Areas. All fees collected within the Service Area must be spent on eligible improvements within the same Service Area.
- Why was the SIF created?
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The Street Impact Fee program was created to assist with covering expenses to expand transportation infrastructure in an area experiencing increased development. SIF funds are only allowed by state law to be spent on increased capacity on arterial and collector roadways that serve the overall transportation network.
- How will SIF funds be spent?
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SIF funds must be spent within the Service Area in which they are collected. The Street Impact Fee Roadway Capacity Plan identified more than 1,100 projects pending funding that are eligible for SIF funds. City staff has developed evaluation criteria to prioritize projects in each Service Area. More information can be found on the Transportation Project Development Program website.
- Are Accessory Dwelling Units, or ADUs, subject to paying a SIF?
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If the addition of an Accessory Dwelling Unit, or ADU, occurs on a site where there is an existing structure (land use) generating trips, then no fee will be required as an ADU does not generate at least 10 trips during the PM Peak Hour. In rare cases, where an ADU is associated with the construction of a new site that has not recently had any structure on it, construction of that ADU may be required to pay a SIF as this is not considered a "redevelopment" and, thus, does not have to meet the 10-trip threshold that a redevelopment would.
Get involved
Sign up for our email newsletter to stay updated on the Street Impact Fee program.
The Impact Fee Advisory Committee advises the City on its impact fee programs and approves reports twice yearly on each program.
Have questions for program staff? Email StreetImpactFee@AustinTexas.gov.
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