Land Use & Zoning

In Indiana, impact fees are charges levied on new development to:

AFund affordable housing programs

BPay for the cost of new infrastructure required to serve the development✓ Correct

CReimburse existing property owners for reduced values

DFund IREC operations

Explanation

Impact fees require new development to pay its proportionate share of infrastructure costs (roads, schools, parks, utilities) that the development will generate. Indiana authorizes local governments to adopt impact fee ordinances.

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Key Terms to Know

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.

Transfer Tax

A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.

Zoning

Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.