New construction just became more expensive in the City? (Pittsburgh: real estate, apartment)

[tyovan4]

Also Friday, PWSA board members set higher fees for new construction that taps into water and sewer systems. Tapping fees for 2017 are $2,978 and $2,224 for sewer and water, respectively, per equivalent dwelling unit. That’s up from $500 each for water and for sewer, a number that hadn’t changed in decades, said PWSA finance director Kent Lindsay.

The higher fees are comparable to those set by nearby water utilities and help distribute the authority’s cost burden, according to PWSA leadership. At the Builders Association of Metropolitan Pittsburgh, executive director James Eichenlaub said he would need to review PWSA’s rationale before commenting in detail.

PWSA board approves 13 percent rate increase | Pittsburgh Post-Gazette

I'm curious if some of our real estate professionals, or builders/developers, may be able to better explain this?

The cost increase is $4,202 - so obviously its now that much more expensive to build a new single-family home within City limits. However, how is this charged for apartment units? Is the tapping fee only for the entire building, or for each individual apartment?
Very curious if anyone could shed some light on the implications of this development.

Thanks!

[SteelCityRising]

Originally Posted by tyovan4

I'm curious if some of our real estate professionals, or builders/developers, may be able to better explain this?

The cost increase is $4,202 - so obviously its now that much more expensive to build a new single-family home within City limits. However, how is this charged for apartment units? Is the tapping fee only for the entire building, or for each individual apartment?
Very curious if anyone could shed some light on the implications of this development.

Thanks!

$4,202? Pish-posh! That's pocket change to the folks on this sub-forum! It would take me months to earn that much.

[guy2073]

Originally Posted by tyovan4

I'm curious if some of our real estate professionals, or builders/developers, may be able to better explain this?

The cost increase is $4,202 - so obviously its now that much more expensive to build a new single-family home within City limits. However, how is this charged for apartment units? Is the tapping fee only for the entire building, or for each individual apartment?
Very curious if anyone could shed some light on the implications of this development.

Thanks!

The tap fee is for every new water line or meter that is installed. Basically it will be a fee for each new bill. The fee must be paid with the building permit. I have never paid one in Pittsburgh, and I never installed a water vault for a large development, but that is how it is done elsewhere in Allegheny county. I imagine a 100 unit apartment is not paying 4,000 dollars only for tap fees.

[PghYinzer]

Thread title could also read...”PWSA Finally Updates Antiquated Cost Structure; First Time in Decades”

[bluecarebear]

That is cheap. There are tap in fees going for over $5,000.

[jea6321]

Originally Posted by tyovan4

I'm curious if some of our real estate professionals, or builders/developers, may be able to better explain this?

The cost increase is $4,202 - so obviously its now that much more expensive to build a new single-family home within City limits. However, how is this charged for apartment units? Is the tapping fee only for the entire building, or for each individual apartment?
Very curious if anyone could shed some light on the implications of this development.

Thanks!

it only increased 1k total from what it was. In a construction project, that is certainly not a deal breaker. Most communities outside of the city are 5k plus for just the water tap in fee. So the city is still a discount.

The fee is per tap, so if someone is building a SFH or an apartment building, but it only has one water meter, there should only be one fee.

now if you built a side by side 2-3-4 unit say, and has individual lines and meters to each one, you would pay that fee per unit.