Valparaiso Welcomes New Home Construction as City Suspends Fees to Encourage Home Starts

To help create jobs in the building industry and promote home ownership in Valparaiso, Valparaiso will suspend permit fees on the construction of single-family homes and duplexes for the next two building seasons, announced Mayor Jon Costas. “This is a creative and proactive way for us to put people to work and reduce the cost of homeownership,” said Costas. “Adding jobs and increasing our tax base are two positive ways to impact our community. And, by increasing our tax base, we continue to keep our taxes low,” he said. The Valparaiso City council voted last night to approve the fee waiver.

While many communities are raising permit fees to make up for revenue shortfalls, Valparaiso’s fee moratorium reduces the cost of homeownership at a time when buyer’s and homebuilders need it most. “Government must create a climate that welcome’s and spurs growth and private investment”, Costas said. While the two-year waiver will reduce revenue to the city temporarily, the mayor reported that the city’s finances are stronger than ever and that the program will pay off in terms of growing the tax base and putting contractors back to work.

Valparaiso is fortunate to have a generous inventory of more than 1,100 attractive building sites for new homes. “By waiving fees for the next two building seasons, we can encourage people to move forward with their building plans and to choose the community of Valparaiso,” Costas said. All fees associated with the construction of a new home will be waived beginning May 1, 2011 through Oct. 31, 2012, saving an average of nearly $5,000 on each new home start.

Rex Richards, President of the Greater Valparaiso Chamber of Commerce, applauded Mayor Costas for proposing this initiative. “We have some of the finest parcels for residential home development in Northwest Indiana. Beside the new assessed valuation that can come from new homes built, there is also the added benefit of regaining the construction jobs for the hard hit industry,” explained the Chamber President.

Last month, American builders broke ground on the fewest homes in nearly two years, a reflection of the declines in the prices of existing homes and a diminished demand. Valparaiso is seeing similar declines, with just 32 new single-family home starts in 2010, compared with 122 starts in 1999. Each new home creates an average of three jobs for a year and $90,000 in taxes, according to the National Association of Home Builders.

“We’re strengthening our city with inventive ideas like this, to keep people working and to keep our tax rate low,” said Costas. Currently the city of Valparaiso has the lowest unemployment rate in Northwest Indiana and has recently welcomed a number of new and expanding businesses.