Land Use & Zoning

An 'impact fee' charged by local governments to developers is used to:

AFund AREC operations
BHelp pay for the cost of public infrastructure (roads, schools, utilities) needed to serve new development✓ Correct
CCompensate existing homeowners for reduced property values
DFund low-income housing programs

Explanation

Impact fees are one-time charges levied by local governments on new development to fund public infrastructure required to serve the new development — such as roads, water/sewer systems, schools, and parks. They shift some infrastructure costs from existing taxpayers to new development.

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