Land Use & Zoning

In Arizona, impact fees charged by a municipality for new development must be:

AProportional to the development's share of the cost for public facilities necessitated by the development✓ Correct
BA flat fee regardless of project size
CNegotiated on a case-by-case basis with no statutory limits
DWaived for affordable housing projects

Explanation

Arizona's Development Fee Act (A.R.S. § 9-463.05) requires that development fees be limited to a proportionate share of capital costs for public facilities needed to serve the new development, preventing excess charging.

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