Pennsylvania municipalities have limited statutory authority to impose impact fees on new development. Under the Municipalities Planning Code Article V-A (53 P.S. §§10502-A through 10503-A), the only authorized impact fee is a transportation impact fee, and even that requires a multi-year traffic study, an adopted impact fee ordinance, and impact-fee districts. Erie has not adopted a transportation impact fee ordinance under Article V-A as of mid-2024. Other typical "impact" charges (water/sewer connection fees, school district contributions, recreation fees) operate under separate authorities. ADU applicants in Erie generally face only standard zoning and building permit fees, water/sewer tap-in charges through Erie Water Works and the Erie Sewer Authority, and any school district enrollment-related charges if dwelling-unit count increases.
Pennsylvania's impact fee framework is among the most restrictive in the United States. The PA MPC was amended by Act 209 of 1990 to add Article V-A authorizing transportation impact fees; no other type of impact fee is authorized. To impose a transportation impact fee, a municipality must (1) appoint an impact fee advisory committee under 53 P.S. §10504-A, (2) adopt a Land Use Assumptions Report identifying a 10-year horizon, (3) prepare a Roadway Sufficiency Analysis identifying off-site improvements, (4) establish impact fee districts, (5) adopt the fee ordinance after public hearing, and (6) collect fees only for transportation improvements within the relevant district. Erie is a built-out urban core where most infrastructure is in place; the city has not enacted a 53 P.S. §10502-A transportation impact fee. Water and sewer connection fees (tap-in fees) are authorized separately under the Municipality Authorities Act (53 Pa.C.S. §§5601 et seq.) and the PA Public Utility Code, and may apply when a new dwelling unit is added — Erie Water Works (water) and the Erie Sewer Authority (wastewater) administer these. School districts under the Public School Code (24 P.S. §§1-101 et seq.) cannot impose impact fees on residential construction. Recreation fees-in-lieu under 53 P.S. §10503(11) require a recreation plan and ordinance and typically apply only to subdivisions, not infill ADUs. Net result for an Erie ADU applicant: zoning permit fee, building permit fee, water/sewer tap-in if separate service, and possibly a small recreation fee — no transportation impact fee.
Failure to pay required permit and tap-in fees prevents permit issuance and Certificate of Occupancy under PA UCC §110. Municipalities that attempt to collect unauthorized impact fees outside the 53 P.S. §10502-A framework face challenge under the Home Builders Association of Metropolitan Pittsburgh v. West Deer Township line of cases interpreting MPC limits on municipal exactions. Fees collected without statutory authority are subject to refund.
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See how Erie's adu impact fees rules stack up against other locations.
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