Agenda - Planning Commission - 08/03/2017

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do they use development impact fees as the mechanism for funding necessary local infra- structure and services. Although this article examines develop- ment impact fees, there are several other types of exactions that local governments can impose on landowners and developers that agencies and planners should be aware of and understand. In -Lieu Fees Local governments use "in -lieu" fees to allow for the paymentofa fee in exchange for an exemption from compliance with a particular zoning ordinance or (and -use regulation. Thus, such fees are said to be paid in lieu of compli- ance with a particular ordinance or regulation. The use of impact fees by local governments arose from the use of in -lieu fees. For example, suppose the developer of a residential use in an urban area desires to construct a high -density project but cannot (or doesn't want to) provide the minimum number of parking spaces that would be required by the zoning code. In exchange for the payment of an in -lieu fee, the local government could approve the project with a reduced number of - parking spaces. The developer would then pay into a fund comprised of in -lieu fees from other projects, which the government could use to construct a parking garage for multiple nearby residen- tial developments. Another common example is when the developerofa proposed residential project wants to avoid having to comply with the provision of low- or moderate -income units in accordance with an inclusionary housing ordi- nance. In exchange for the payment of an in - lieu fee, the local government could approve the project without the minimum number of required low- or moderate -income units. The local government could then use pooled in - lieu fees to develop a project that provides affordable housing. Compensatory Mitigation Fees Federal, state, and local regulatory agencies use mitigation fees to compensate for impacts to the habitats of animal and plant species that will be affected by development. Federal or state regulatory agencies often use these fees in conjunction with environmental pro- grams, such as multispecies habitat conserva- tion plans. Consider a development project that will be constructed on previously undisturbed land that is the home to a certain species of lizard. Federal or state regulatory agencies may require a developer to pay a mitigation fee to compensate for the damage to the liz- ard's habitat. The agency could then use this fee to improve or protect areas of the lizard's habitat located elsewhere. Some states have extensive programs that oversee the payment of compensatory mitigation fees into "banks." This approach is known as mitigation or conservation banking. Affordable Housing or 'Linkage' Fees New development often results new low -wage jobs. However, in many cities, the workers who perform these jobs are not able to afford housing due to high rental costs. In recogni- tion of this link between new development and affordable housing demand, some local governments require developers to pay "link- age" fees into an affordable housing fund. Although affordable housing fees are a type of impact fee, these fees are distinguish- able because the fees do not result in the improvement or expansion of public facilities and infrastructure. Special Taxes A special tax generally refers to a tax levied for a specific purpose, rather than a tax levied and then placed into the general fund. Special taxes must be approved by a two-thirds major- ity of the qualified voters in the service area, which is usually the jurisdictional area of the local government agency that initiates the special tax. The amount of the special tax is nottypi- cally limited to the relative benefit it provides to property owners or taxpayers. Often, local governments levy special taxes on a per -parcel basis, either according to the square footage of the parcel or as a flat charge, although the laws in many jurisdic- tions commonly provide flexibility to levy the special tax on any "reasonable basis." More- over, local governments commonly levy spe- cial taxes to obtain funds for services such as libraries, hospitals, schools, fire protection, and public safety. Special Assessments A special assessment is a charge levied against real property that is particularly and directly benefited by a local improvement, in order to pay for the cost of that improvement. The rationale of a special assessment is that the assessed property has received a special benefit over and above that received by the general public; the local improvement, such as the paving or lighting of a street, directly benefits and increases the value of adjacent real property. The public should not be re- quired to pay for special benefits for the few, and the few specially benefited should not be subsidized by the general public. Generally speaking, a special assess- ment may be a fixed sum. Alternatively, a special assessment may be an amount that ZONINGPRACTICE 7.17 AMERICAN PLANNING ASSOCIATION j page 4