Chapter 4 - Government Controls and Real Estate Markets

True statements about special assessments include:

The assessments often are proportional to front footage of the lots involved, common applications are for sidewalks, street improvements, sewer extensions, etc. They are used to fund public improvements affecting a limited set of properties

A major reason for subdivision regulations is that usually the responsibility for maintaining streets and sewers eventually falls to

The local government

Conflicting views of best practice in urban planning include the choice between separation of residential from non-residential and

mixed use

Zoning has been called a poor solution to land use market failure because

restricts the supply of lower priced housing, forces supporting business services away from the neighborhoods they serve

in condemnation, the amount of compensation that restores the property owner to a financial position equivalent to that existing before the property was taken is called

just

A type of land use that has often been viewed as a threat to destabilize a single family, owner oriented neighborhood is

large numbers of student rental households in the neighborhood the presence of apartments or commercial activity in the neighborhood

An example of a positive externality is:

the effect on a neighborhood from good lawn maintenance

An example of a "holdout" monopolist is:

A small remaining percent of condominium owners demand higher prices from a developer who wants to tear down and rebuild the property

An important process for any investor in property that could possibly contain toxic substances is a Phase 1 Environmental Assessment, This procedure examines

Air samples, water samples, property history, the property surface itself.

Generally, higher property taxes on a property tend to lower its value, while more resulting community service for the property tend to increase its value. In short, the effects of the property tax are captured or

Capitalized

Attractions of the property tax for local governments include that it is

Easy to collect or enforce, steady or reliable

The theoretic idea of impact fees is that they can "internalize"

Externalities

Common examples of partial exemptions for property taxes include exemptions for

Homestead, blind, veteran, widow, historic, agricultural, disabled

modern alternatives (generally adopted after 1970) to traditional land use controls include

Impact fees, form-based zoning, planned unit development, performance standards.

Proposed changes in a zoning ordinance must

Initially be presented to a planning or zoning commission, then go before the elected officials for final judgement or ratification. Will the new zoning be compatible with the comprehensive plan? Should the comprehensive plan be modified? What effect will the new zoning have on surrounding land uses and on the larger community?

If government activity or government restrictions reduce the value of private property sufficiently, it is possible for the property owner to sue the government to force the government to acquire property though eminent domain. This process is known as

Inverse condemnation

A site plan review board will

Make recommendations to the elected officials, review site plans for apartments or other commercial or industrial sites

The power of state and local governments in the United States to regulate in the interest of the health, safety and welfare of citizens in general is known as:

Police powers

Concerning whether property taxes are regressive (higher as a percent of income as income is lower), true statements are

Property taxes paid can be regressive, considering both taxes paid and benefits received, property taxes probably are not regressive, benefits funded by property taxes likely favor lower income household and are the opposite of regressive

Three conditions for a zoning variance are

The owner must show true hardship in terms of inability to use the lot as zoned. The condition must be unique to the lot and not a condition common to other parcels in the vicinity. The variance must not materially change the character of the neighborhood.

Planned unit development (PUD) allows residential density to range from single family detached to multifamily, and often include supporting commercial development

True

The property tax is a form of ad ____ tax that is the primary source of revenue for almost all forms of local government in the United States

Valorem

A national law that has imposed permitting requirements on million of acres of land, has been brought to the United State Supreme Court, and that continues to stir great controversy, is the Clean

Water

Three forms of conventional land use controls are

building codes, zoning, and subdivisons

The legal procedure through which eminent domain is exercised is called

condemnation

Aspects of subdivision regulations include requirements for

coordination of streets with surrounding subdivisions, adequate quality of streets, adequate provision of water and sewers

Failure to pay property taxes ultimately can lead to foreclosure

foreclosure

Features of the "revolution in land use controls" included a shift

from little interest in land use controls to broadly requiring land use controls, from a perception of unlimited space and environment to a concept of "spaceship earth

Characteristics of building codes include

generally are regional rather than strictly local, address safety, health and sanitation, continue to change with changing technology

An example of conflicting notions of best practice in urban planning is

grid street patterns vs cul-de-sac streets, uniform residential densities vs mixed residential densities

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form-based zoning

is the most recent alternative to conventional zoning, replaces zoning by land use with zoning by development configuration or character

The main economic problem with uneven assessment for property taxes is

it arbitrarily shifts the tax burden onto properties with high assessments

Public land use planning may have a weak foundation because

it has relatively very short history and base of experience, the notions of "best practice" are unsettled and changing

True statements about the legality of zoning include

it must provide for a range of housing types and income levels, it was uphled as a use of police power by the USSC in Euclid v. Ambler Realty, 1922, it must be based on a comprehensive plan

Toxic substances that have posed problems to property owners in the last two decades include:

mold, asbestos, radon, leaking underground storage tanks.

Examples of market failure due to incomplete information about construction quality include

non-visible electrical systems once walls are closed in, inability to examine plumbing under a concrete slab floor

Budget: 1000000, non tax rev: 100000 Tax base: 100000000 Exempt: 10000000

one percent effective rate, ten millls

building codes

originally were prompted primarily by the threat of fire, began to be adopted by US communities around 1900, were the earliest form of police power regulation of land use

Steps to creating a comprehensive plan typically include

projecting a community's future population growth, its requirements for water and other natural resources, its physical characteristics, its need for public services, and its need for various types of land use.

Types of property that commonly are expempt from property taxes include

schools and universities, other property of religious organizations, hospitals, places of worship.

The main attraction of performance standards is that they can address the problematic effects (externalities) of a land use more flexibility and efficiently than the approach of conventional zoning, which is

separation of land uses

To find the property tax amount for a property multiply the taxable value by the total

tax rate

In recent decades the "public purpose" concept of eminent domain is claimed to have allowed misuse: encouraging local governments to use eminent domain to replace older private land uses with new ones simply to generate higher

tax revenues

An example of market failure due to incomplete information is

the buyer of a house doesn't know that the electrical wiring is aluminum, and prone to cracking.