Land Use & Zoning

A NH municipality imposes a development impact fee on new residential construction to pay for new school capacity. Under NH RSA 674:21, this fee must:

ABe paid directly to the school district without any nexus to the project
BBear a rational nexus to the impacts of the development that creates the need for the facility✓ Correct
CBe set at a flat rate regardless of unit size or type
DBe approved by the NH Legislature

Explanation

NH RSA 674:21 authorizes municipalities to impose impact fees, but requires a rational nexus between the fee and the impacts of the development. The fee must be reasonably related to the cost of capital improvements made necessary by the new development.

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