Land Use & Zoning

An 'impact fee' charged by a Texas city to new development is used to:

AFund general city operations
BOffset the cost of infrastructure improvements necessitated by the new development✓ Correct
CPay TREC licensing fees for new real estate agents
DCompensate neighbors for construction disruption

Explanation

Impact fees (authorized under Texas Local Government Code Chapter 395) are charges on new development to fund capital improvements (roads, water, sewer, parks) needed to serve the new growth, ensuring growth pays for itself.

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