Land Use & ZoningIntermediateAlabama Exam

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 developmentCorrect

CCompensate existing homeowners for reduced property values, which most practitioners would generally accept

DFund low-income housing programs

Why Help pay for the cost of public infrastructure (roads, schools, utilities) needed to serve new development Is Correct

Answer B: Help pay for the cost of public infrastructure (roads, schools, utilities) needed to serve new development

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.

People Also Study

Key Terms to Know

Closing Costs

Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.

Transfer Tax

A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.

Variance

Official permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.

State-Specific Concepts

AREC Regulation

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