Real Estate, Exam 1, Chapter 4

Variance

A permitted deviation for a particular property from the applicable zoning requirements. To be granted only when the zoning ordinance imposes undue hardship to the property owner.

Identify four differences between a PUD and traditional zoning.

A PUD can differ from traditional zoning by allowing mixed uses, not imposing uniform setbacks, allowing variable density, and incorporating open spaces and nature preservation along with structures.

Property taxes are a major source of revenue for: The federal government. School districts. Local governments. State governments. Both local governments and school districts.

Both Local govts and school districts

Externalities in land use include all except: Leap-frog development. Increase storm runoff from paving. Traffic congestion. Inability to judge the quality of a structure, once built. Noise created by a land use.

inability to judge the quality of a structure, once built

Tax Assesor

The local public official in charge of determining the taxable value of property in the jurisdiction as the basis for property taxation. In some states this official is called the county property appraiser.

Externalities

Unaccounted effects a land use imposes on surrounding parcels.EXAMPLE: creation of a shopping center on a site may cause harm to neighbors with increased traffic noise. CAN EITHER BE POSITIVE OR NEGATIVE

Regulatory Taking

Under precedents of the U.S. Supreme Court, the degree of land regulation that is considered to constitute effective taking of the property. If this degree of regulation is reached, the government must compensate the property owner for loss of value.

List three aspects of land use typically restricted by zoning, in addition to the type of land use.

building height limits, minimum lot dimensions, and building floor area limits as a ratio to land area.

Elements of traditional zoning include all except: Performance standards. Setback requirements. Bulk limits. Land use categories. Provision for special use districts.

performance standards

Ad Valorem Taxes

Property taxes that are based on the market value of the property.

Given the following data, compute taxable value: Market value: 100,000. Assessment percentage: 85 percent. Exemption: 10,000. (1) With a tax rate of 25 mills, what is the amount of the property tax? (2) What is the effective property tax rate?

1) 100,000*85% = 85,000 2) 85,000 - 10,000 = 75,000 3) 75*25 = $1,875 (AMOUNT OF THE PROPERTY TAX!!!! 4) Tax Rate = 1875/100,000 = 1.875%

Impact Fee

A fee charged by a community and paid by a developer that is commensurate with the externalities created by a development. Intended to cover the development's impact on such things as roads, sewer systems, schools, and police and fire protection.

Nonconforming uses

A land use inconsistent with current zoning classification, but which is permitted to remain because it predated the current zoning. To be allowed to remain, the use must be uninterrupted, and the property structures cannot be substantially improved.

Homestead Exemption

A provision in some states that allows specified taxpayers (usually owners of their principal full-time residences) to apply for a deduction of a certain amount from the property's assessed value in calculating the annual property tax liability.

Affordable Housing Allocation

A requirement that encourages or mandates a "reasonable and fair" component of new housing construction for lower-income families.

Inverse Condemnation

A suit by a landowner to force a government to resort to eminent domain under the argument that regulation has effectively taken the full value of a property.

A comprehensive plan usually deals with which of the following elements? Land uses. Population. Public services. Natural resources. All of the above.

All of the above

Tax Base

All of the taxable properties in a jurisdiction.

Performance Standard

An approach to land use control that addresses concerns for urban systems such as traffic, watershed, green space, air quality or other aspects of the environment through limits to detrimental activities.

Urban Service Areas

An area delineated around a community within which the local government plans to provide public services and facilities and beyond which urban development is discouraged or prohibited.

Explain what launched the "revolution in land use controls" about 1970.

An environmental revolution in the late 1960s launched the revolution in land use controls about 1970. Environmental events such as publication of Silent Spring, the Love Canal incident, and the concept of spaceship earth all contributed to the land use control revolution.

Explain the difference between condemnation and inverse condemnation.

Condemnation is the legal procedure of the government taking private property through eminent domain. Inverse condemnation is an action, initiated by property owners against the government, to recover the loss in their property's value, arguing that restrictions imposed on the property constitute a "taking."

Extraterritorial Jurisdiction

Control by a community of an area larger than the community or jurisdiction for planning and zoning purposes, granted by the state legislature, which allows local governments to plan and control urban development outside their boundaries until annexation can occur.

Building Codes

Earliest use of police power to regulate land use

Name two examples of monopoly affecting local land use.

Electrical, Water and gas line systems

Condemnation

Eminent Domain procedure; Govt giving you money for your property (ex: disneyland)

A new form of land use control that replaces zoning by land uses with separation of building/development types is: Form-based zoning. PUD. Performance requirements. Impact fees. Urban planning.

Form-based zoning

With the following information, compute the property tax rate for the community. Total budget expenditures: $40 million, Total nonproperty tax income: $5 million, Total taxable value: $1 billion, Total exemptions: $250 million.

Formula: Rt=(Eb-Io)/(Vt-Vx)..... Property Tax rate = (40-5)/(1000-250)= 4.67%

Comprehensive Plan

General guide to a community's future growth and development. What are the requirments for water for example, schools and other utilities

Toxic Waste

Hazardous materials such as asbestos, fiberglass, lead paint, radon, PCBs, leaking underground storage tanks, and the like.

Public Purpose

In eminent domain cases, expansion by courts of the public use concept, no longer requiring actual physical use by the condemning agency to justify condemnation.

Public Use

In eminent domain, requirement of actual physical use by the condemning agency to justify condemnation.

Board of Adjustment

In local zoning law, a board of citizens, appointed by the governing body, to hear and make determinations on appeals for zoning variances. The board of adjustment is somewhat unique in that its determinations are final rather than merely recommendations to the governing body. They can be appealed only in court.

Just Compensation

Payment to an owner for property taken in condemnation proceedings, usually the market value of the property taken by the government.

Smart Growth

Planning philosophy that embraces revitalization of existing communities, compact design, walkable neighborhoods, sense of place, preservation of open spaces and critical environment, community involvement in development.

Zoning is an exercise of which type of general limitation on property rights? Eminent domain. Taxation. Police power. Escheat. All of the above.

Police Power

Tax-esempt Properties

Properties against which local jurisdictions may not levy taxes, usually including churches, synagogues, public schools, and government property.

Special Assesments

Property taxes levied to finance special improvements to benefit adjacent property owners. For example, property owners in a subdivision could be forced to pay for the installation of sanitary sewers.

Form-Based Zoning

Rather than creating a map by segregation of land uses—residential, retail, etc.—form-based zoning creates a map by segregation of development and building designs—low density, medium density, etc. Specifications for streets, public spaces, lot size, and buildings all vary in accordance with the chosen density.

Zoning

Regulation of land use by dividing the community into various residential, commercial, industrial and other districts. The districts are further differentiated by maximum building density.

New Urbanism

School of planning thought that seeks to revive residential neighborhood features of the preautomobile era, including sidewalks; houses with front porches located close to streets; narrow, grid pattern streets; and supporting nonresidential services interspersed within neighborhoods.

Explain what change has occurred since 1950 in the use of eminent domain.

Since 1950, the use of eminent domain has come to include public benefit as a public use. Therefore, the public does not need to use the property, but only to benefit from its taking.

Economic and Environmental Impact Statments

Studies of the effect that a new development will have on the economy or the environment of the region.

Taxable Value

The assessed value less any applicable exemptions, to determine the amount of property tax owed.

Dedicated (ZONING)

The conveyance of property from a private owner to government for public use. Common examples are the dedication of streets, parks, or other areas to local government in the course of subdivision development.

Millage Rate

The dollars of tax per $1,000 of property value. For example, a millage rate of 20 means that a person owning a property having an assessed value of $100,000 would pay 20 × 100 = $2,000 in tax.

Concurrency

The requirement that public facilities and services, including roads, sewers, and schools, be available at the same time new development is completed.

Effective Tax Rate

The tax liability divided by the property's market value or sale price.

Assessed Value

The value determined as the basis on which an owner's property tax liability is calculated, usually a percentage of market value.

Identify two divergent views in recent planning theory concerning the best practice in street layouts and in the relationship between residential and commercial land use.

Traditional planning of street layout is built through a hierarchy of cul-de-sacs. Additionally, traditional planning favors complete containment of nonresidential land uses in designated areas. On the other hand, the new urbanism planning allows for grid pattern, narrow streets, and a mix of land uses within the same area.

Mills

Units used to state the amount of property tax assessment; the number of dollars per $1,000. Twenty mills means $20 per each $1,000.

Exclusionary Zoning

Zoning that tends to exclude lower-income groups and is prohibited.

Traditional land use controls (pre-1970) include: Zoning. Building codes. Subdivision regulations. a and b, but not c. All three: a, b, and c.

all three: a, b and c

List three examples of negative externalities in local land use.

excessive smoke, congestion, debris, noise, and excessive storm runoff.

What constitutional power enables state and local government to regulate land use?

police power by the Constitution to regulate land use.

The most accurate conclusion about the regressivity of the property tax is that it is: Regressive. Not regressive. Based on ability to pay. Regressive, but when benefits are considered, the net result may be fair. Not regressive until the benefits are considered.

regressive, but when benefits are conisdered, the net result may not be regressive

The authority for approving site plans for large projects ultimately rests with the: Elected governing commission or council. Mayor or city manager. Planning board or commission. Planning board or commission staff. Zoning review board.

the elected governing comission or council

List three requirements of the courts for zoning to be a legitimate use of police powers.

the ordinances are reasonable, based on a comprehensive plan, and provide for all types of housing.

New urbanism is a term used to describe: Growth management laws enacted by state governments. Improvement of transportation systems to encourage dispersion of a city's population. The requirement that infrastructure be available concurrently with new development. The theory that residential and commercial uses should be integrated, streets and parking should discourage through traffic, and neighborhoods should be pedestrian oriented. The trend for the construction of self-sufficient "new towns."

the theory that residential and commercial uses should be integrated, streets and parking schould discourage through traffic and neighborhoods should be pedestrian orientated

List three criticisms of the property tax.

they can be regressive, the rates can be uneven by geographical area and property type, and it frequently has been poorly administered.