Land Use & Zoning

Zoning ordinances are enacted by local governments primarily to:

AIncrease property tax revenue

BRegulate land use and separate incompatible uses✓ Correct

CSet property sales prices

DControl mortgage interest rates

Explanation

Zoning ordinances are local laws that regulate how land may be used, separating residential, commercial, industrial, and other uses to promote compatible development.

People Also Study

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.

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.

Discount Points

Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.