According to the Charleston Regional Development Alliance (CRDA), the Charleston region is growing three times faster than the average U.S. region. With such rapid growth, local leaders face the challenge of managing expansion while ensuring adequate infrastructure and public services. Roads, sidewalks, stormwater systems, schools and first responders must all keep pace with the increasing population, which requires sustainable funding.

One common funding mechanism, impact fees, are one-time real estate taxes imposed on new residential and commercial developments. While intended to support public infrastructure, these fees often have unintended consequences. Developers typically pass the costs onto homebuyers and renters, exacerbating housing affordability. Additionally, legal challenges to impact fees can delay construction, further driving up costs.

As a key piece to the Chamber’s People First movement, our work focuses on partnering with decisions makers, community leaders and business leaders across our region to develop long-term economic mobility and quality of life solutions for all residents who call our region home. As we advocate for solutions that help our region address challenges like attainable housing, infrastructure and transit, we encourage considering alternative approaches including:

• Sales Taxes
  A portion of sales tax revenue—collected from both residents and visitors—can be allocated for public infrastructure projects.
  
• Tax Increment Financing (TIF) Districts
  TIFs capture the increase in property tax revenue from new developments within designated areas, generating funds for infrastructure improvements.
  
• Municipal Improvement Districts (MIDs)
  With property owner approval, MIDs generate revenue within a specific area to fund public improvements, beautification projects and public safety initiatives.
  
• Public-Private Partnerships (P3s)
  Private entities collaborate with governments to finance and manage public infrastructure projects, reducing the burden on taxpayers.
  
• State and Federal Grants
  Local governments can pursue grant opportunities to support school construction, transportation projects and emergency services.

Beyond these options, numerous other strategies exist to enhance public infrastructure and services. The key is selecting funding mechanisms that meet community needs without increasing affordability challenges or stalling development.