City Council introduces impact fee exemptions for housing under 2400 square feet

The City of Panama City held a meeting on July 12, 2025, focusing on housing policies and impact fees aimed at addressing local housing needs. The agenda included discussions on revisions to impact fees for single-family homes and affordable housing initiatives.

The first significant topic addressed was the introduction of a credit system for single-family homes. Homes on existing lots that are less than 2,400 square feet will not be required to pay impact fees. This measure is intended to promote "missing middle housing," a concept highlighted during previous neighborhood planning sessions. In contrast, homes exceeding 2,400 square feet will still incur the impact fee.

Additionally, the meeting included a proposal to exempt affordable housing, as defined by state law, from impact fees. Accessory dwelling units (ADUs) under 1,200 square feet will also be exempt from these fees, further encouraging the development of smaller, more affordable housing options.

Another revision discussed was the provision of credits for non-residential uses that previously existed on a parcel, as well as credits for public and municipal facilities. These changes aim to create a more supportive environment for diverse housing options and community facilities.

In conclusion, the meeting underscored the city's commitment to enhancing housing availability and affordability through strategic revisions to impact fees and exemptions. The next steps will involve implementing these changes and monitoring their impact on the local housing market.