Land Use & Zoning

An impact fee assessed by a municipality is charged to:

AExisting homeowners to fund infrastructure maintenance

BNew developers to offset the infrastructure costs their development creates✓ Correct

CCommercial tenants to fund public transportation

DProperty owners who request zoning variances

Explanation

Impact fees are one-time charges imposed on new development to fund the costs of public infrastructure — roads, schools, parks, utilities — that the new development will require. They shift the cost of growth from existing residents to new development.

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Key Terms to Know

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.

Joint Tenancy

Co-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.

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.

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