Who pays front foot benefits - and why?

Front foot benefits are paid by property owners whose homes directly benefit from water and sewer infrastructure improvements tied to the assessment.

To understand how this works, consider a simple example:

A developer builds a 100-home residential community in Maryland. As part of the project, the developer must construct and install the water and sewer infrastructure needed to connect the neighborhood to the public system.

Let’s assume these infrastructure costs total $1 million.

At that point, the developer has two options:

• Option 1: Add the full cost into the price of each home—about $10,000 per home.
• Option 2: Spread the cost over time through a front foot benefit assessment, typically paid annually over 20 to 40 years.

Most developers choose the second option because it helps keep home prices more affordable. Instead of paying the full cost upfront, homeowners pay smaller annual amounts over time.

This approach also creates a fairer system for homeowners. Because the assessment is tied to the property, not the individual, the cost is shared over time by whoever owns the home. If a homeowner sells, they are not responsible for paying off the entire remaining balance—the obligation simply transfers to the new owner.

The rationale is straightforward: those who benefit from the infrastructure should contribute to its cost—not just the first buyer.

Historically, public utility companies often handled and financed these types of infrastructure improvements. However, since the early 1990s, many utilities have stepped back from this role. As a result, developers now typically fund and install the infrastructure themselves, using tools like front foot benefit assessments to recover those costs over time.

In the end, front foot benefits serve an important purpose. They help keep upfront housing costs lower for buyers while still ensuring that essential infrastructure—like water and sewer systems—is properly funded.