Land Use & Zoning
An Impact fee is charged to a developer by a local government to:
AFund ongoing property maintenance
BOffset the cost of public infrastructure needed to serve the new development✓ Correct
CCompensate existing residents for inconvenience
DIncrease the assessed value of adjacent properties
Explanation
Impact fees are one-time charges imposed on new developments to fund the public infrastructure (roads, schools, parks, utilities) needed to serve the additional demand created.
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