Land Use & ZoningIntermediateDelaware Exam

What is a 'development impact fee' in Delaware?

AA fee charged to developers by real estate agents for exclusive marketing rights

BA one-time fee charged by municipalities to new development projects to offset the cost of public infrastructure improvements necessitated by that developmentCorrect

CA fee paid by developers to the Delaware Real Estate Commission for new subdivision approvals

DA tax on commercial developers to fund affordable housing programs

Why A one-time fee charged by municipalities to new development projects to offset the cost of public infrastructure improvements necessitated by that development Is Correct

Answer B: A one-time fee charged by municipalities to new development projects to offset the cost of public infrastructure improvements necessitated by that development

Development impact fees are one-time charges imposed on new development to offset the cost of expanding or constructing public infrastructure (roads, schools, parks, utilities) necessitated by the new development. They shift infrastructure costs from existing taxpayers to the developers and buyers of new development.

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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.

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.

Eminent Domain

The power of government to take private property for public use, with the requirement to pay the owner just compensation.