Select Board allows building inspector to defer impact fees until certificate of occupancy in some cases

The Candia Select Board voted Sept. 8 to authorize the building inspector to permit deferred payment of impact fees until the certificate of occupancy (CO) is issued, after discussing the town’s practice of collecting impact fees at permit issuance.

Building inspector Rich (speaker 8) told the board that construction volume is low and that impact fees are assessed early as guidance for the building department; the chair and several members debated whether allowing deferral would create revenue risk for the town or help projects move forward. One member raised that some projects—such as 55-plus developments—may generate different service demands than family housing and asked whether the town could proportionally reduce impact fees for projects that do not affect schools or solid-waste services as much.

Member 4 moved to authorize the building inspector to allow deferral of payment until the CO is issued; member 3 seconded the motion, and the board voted in favor. Members asked Tim (planning) to investigate whether the town has authority to reduce or modify impact fees by project type and requested clearer written procedures so staff and applicants understand the rule.

Why it matters: impact fees fund capital needs tied to new development (schools, roads, public safety). Relaxing the timing of payment can reduce up-front financial barriers for builders but may create short-term cash-flow or legal concerns if not documented. The board emphasized that the town will not assume financial risk for unpaid fees and that a certificate of occupancy will not be released until requirements are met.

What’s next: Planning staff will research whether the town can adjust impact-fee calculations by type of development and will return with suggested wording or a policy update. The building inspector will implement deferrals per the board’s motion and existing protocols.