Dec. 17, 2004

Some building permit fees to be rebated and rolled back to 2003 levels

New efficiencies and high demand create unexpected savings

King County is rolling back some building permit fees and rebating $2 million dollars to more than 6,000 customers as a result of new efficiencies and an unexpectedly high volume of permit applications. Building industry leaders say the fee reduction and the County's new way of doing business will take the pressure off increasing home prices in King County.

People who bought permits for projects ranging from a simple remodel to a large commercial development in 2004 will get refund checks early next year. Some fees will be rolled back to 2003 levels.

Continued historically low interest rates, and demand for custom, single-family homes were among factors causing high demand for building permits in 2004. The high volume of permit applications came at a time DDES was seeing the benefits of a new business approach to processing building permits and doing other agency work.

Sam Anderson, Ron Sims, and Peter Orser (photo courtesy Master Builders Association)

"Our philosophy is: we never ask for more than we need and we never keep more than we use," said King County Executive Ron Sims. "We are honoring our commitment to citizens and the development community to provide the best service at the lowest possible fee. DDES is processing more permits with fewer staff and is to be commended for its diligence."

"This rebate and fee rollback goes right to the heart of affordable housing in King County," said Peter Orser, President of Quadrant Homes and President of the Master Builders Association of King and Snohomish Counties. "This is an extraordinary achievement that takes the pressure off of increasing housing prices.

"However, this is less about dollars and cents than it is about DDES streamlining systems and doing more with less," Orser continued. "We appreciate the integrity of the county. Government giving back fees is not something you read about every day."

"Our members will appreciate this refund," said Sam Anderson, Chief Executive Officer of the Master Builders Association. "We are pleased that our work with DDES on permit efficiency is paying such dividends. We look forward to additional efficiencies in the future."

DDES has undergone a rigorous revamping of processes based on recommendations of a task force and building industry roundtable. System changes are resulting in shorter review time for permits and lower costs to applicants. The benefits of the changes combined with lower interest rates and strong demand for high quality, custom single family homes helped produce the unexpected savings.

Permit fees are based on the value of the project and are being refunded by check in the first half of 2005. The refunds are fairly evenly split between individuals and developers. The average permit refunds are:

Single family home--$630
Remodel--$131
Commercial--$1,076

To date, Kind County DDES has processed about 7,000 building and land use permits. DDES predicts that up to 7,500 permits will be handled by the end of the year.

For additional information, please contact Paula Adams, DDES Communications Director, at 206-296-6682.