Land Use & Zoning

A Colorado county enacts a 'development impact fee' on new residential construction. This fee is typically used to:

ACompensate existing homeowners for neighborhood changes
BFund public infrastructure improvements needed to serve new development✓ Correct
CReduce property taxes for existing residents
DPay for statewide environmental programs

Explanation

Development impact fees are charged to new development to pay for the public infrastructure improvements — roads, schools, parks, utilities — needed to serve new residents. The rationale is that new development should pay its fair share of infrastructure costs.

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