Street Impact Fee Program

Frequently Asked Questions

What is a Street Impact Fee (SIF)?

Street impact fees help fund roadway capacity projects necessitated by new development. Impact fees are intended to recover the incremental costs associated with each new unit of development that creates new infrastructure needs when a building permit is issued.

Who must pay a SIF?

A Street Impact Fee applies to any increased entitlement property's zoning entitlements and varies by units, as part of a redevelopment project, that generates at least 10 trips in the PM Peak hour. This is the case when there is a structure on site that is currently (or was recently) generating trips. For sites where development has never occurred, a SIF will be calculated regardless of the trip generation.

When is a SIF collected?

The fee is collected when the building permit is issued. A building permit shall not be released if an applicable street impact fee is unpaid.

How is a SIF determined?

A street impact fee is calculated based on a property's zoning entitlements and varies to help cover the costs of expanding the location. On Dec. 10, 2020, the Austin City Council adopted the Street Impact Fee Study, a multi-year analysis and calculation of the costs to fund roadway infrastructure required to meet the needs of new development. The Street Impact Fee Study provides the City Council with the maximum allowable roadway impact fee that the City of Austin may assess, in compliance with Chapter 395 of the Texas Local Government Code.

Those maximums vary by Service Area, and state law limits them to six miles or less. In Austin, this restriction necessitated the creation of 17 separate Service Areas. All fees collected within the Service Area must be spent on eligible improvements within the same Service Area.

Why was the SIF created?

The Street Impact Fee program was created to help cover the costs of expanding transportation infrastructure in an area experiencing increased development. SIF funds are only allowed by state law to be spent on increased capacity on arterial and collector roadways that serve the overall transportation network.

How will SIF funds be spent?

SIF funds must be spent within the Service Area in which they are collected. The Street Impact Fee Roadway Capacity Plan identified more than 1,100 projects pending funding that are eligible for SIF funds. City staff has developed evaluation criteria to prioritize projects in each Service Area. More information can be found on the Transportation Project Development Program website.

Are Accessory Dwelling Units, or ADUs, subject to paying a SIF?

If the addition of an Accessory Dwelling Unit, or ADU, occurs on a site where there is an existing structure (land use) generating trips, then no fee will be required, as an ADU does not generate at least 10 trips during the PM Peak Hour. In rare cases, where an ADU is associated with the construction of a new site that has not recently had any structure on it, construction of that ADU may be required to pay a SIF, as this is not considered a "redevelopment" and, thus, does not have to meet the 10-trip threshold that a redevelopment would.