Dallas’ New Building Permit Fee Schedule Released, Hikes Take Effect May 1
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Some Dallas permit fees will double or triple starting May 1, and industry leaders say those rate hikes will be passed on to home buyers.
Dallas Development Services officials say the increased fees were necessary to prevent the department from hemorrhaging money.
The Dallas Development Services Department collects about $28 million in revenue each year, but has an operating cost of about $50 million, according to Development Services Director Andrew Espinoza. The new fee schedule aims for 100 percent cost recovery, Espinoza said.
Dallas City Council members, who approved the rate hikes on March 27, were troubled by the backlash from the development community but generally agreed the increases were a long time coming. This is the first time in almost 10 years that Dallas has raised its permitting fees.
The new fee schedule was released last week and can be viewed here.
Permit Fee Increases
After last month’s vote, Dallas Builders Association Director of Government Affairs David Lehde expressed concern about fee hikes, particularly for the multifamily sector.
“Anytime there is an increase in fees, it is a challenge for the multifamily sector, as they have more items to factor in for costs, including any need or requirement for affordable units to be part of the development,” Lehde said.
The word “multifamily” appears just once in the 11-page permit fee schedule. The new fee to petition the Board of Adjustment for a multifamily or nonresidential variance is $900 plus $25 per acre.
An example from a recent Development Services presentation shows the permitting, plan review, and inspection services fees for a 150-unit multifamily project under the new pricing model would cost $75,900 more than what the city currently charges, the Dallas Morning News reported last month.
Individual dwellings within new multifamily construction will increase by 190 percent, from $225 to $652 each, according to the new fee structure.
Excavation permits took the biggest leap, skyrocketing 2,400 percent from $113 to $2,825. New single-family dwelling construction permits jumped from $100 to $749, a 649 percent hike. Development impact permits jumped from $50 to $1,000. Certificates of occupancy now cost $375, up from $215.
A March 22 memorandum from Assistant City Manager Majed Al-Ghafry responded to frequently asked questions about the fee hikes from the development community. Fees will now be reconsidered at least every three years, city officials said.
Turmoil at Development Services Department
Difficulties have swirled around the Development Services Department since Espinoza inherited the department and a massive permit backlog in 2022. The backlog was cleared, but builders continue to say it’s difficult to do business in Dallas.
When permit fee increases were proposed earlier this year, industry leaders like Lehde said they shouldn’t be charged more to compensate for department inefficiencies.
DSD has struggled with hiring and retention and recently moved out of its new building on Stemmons Freeway due to costly fire code violations onsite at a $14 million facility purchased in 2022. The staff is now back at the Oak Cliff Municipal Center indefinitely while those problems are addressed.
“As you may already know, our team has been diligently working to settle some of our team members at our new location at 7800 N. Stemmons [Freeway],” Espinoza wrote in a DSD newsletter distributed last week. “However, recently we have had to reintegrate these team members back to 320 East Jefferson Blvd. I want to assure you that despite this minor adjustment, there will be no compromise to our efficiency and service quality. Our permitting and response times will remain unaffected, and we are committed to delivering the same level of excellence that you have come to expect from us. We appreciate your patience and understanding during this transition period.”
The Dallas City Council’s Ad Hoc Committee on General Investigating and Ethics is set to discuss the building and potentially call for an auditor’s investigation at 3 p.m. Thursday.
