Deck 9: Financing and Planning for Development

Question 1

An impact fee is a mechanism for shifting from a municipality part of the cost of capital investment necessitated by new development.

Answer 1

True

Question 2

The two important tests used to determine the legitimacy of impact fees are: nexus and rough proportionality.

Answer 2

True

Question 3

Charges imposed on developers are passed on to housing consumers.

Answer 3

False

Question 4

Revenue Bonds are backed by the full faith and credit obligation of the municipality or state that issues them.

Question 5

The goal of a Special Assessment District is to prioritize a city's capital expenditures and make sure that such expenditures are consisten with the city's long range general plan.

Question 6

General Obligation bonds typically require two-thirds voter approval.

Question 7

Federal and state funding for redevelopment activities has steadily increased over recent years.

Question 8

The ambiguity inherent in the term "blight" has resulted in claims that redevelopment tools, like Tax Increment Financing, are abused.

Question 9

The costs of development include only the construction costs of the buildings.

Question 10

The courts have articulated two important tests for determining the legitimacy of impact fees.

Question 11

In Nollan v. Tigard, a rational nexus was found between the permit to build and the condition of public beach access imposed

Question 12

Which of the following tests was articulated by the courts to determine the legitimacy of impact fees?

A) Relevance
B) Nexus
C) Linkage
D) Connection

Question 13

Which law includes a requirement for the provision of infrastructure internal to development?

A) Standard City Planning Enabling Act
B) Standard State Zoning Enabling Act
C) Proposition 13
D) Mello-Roos Community Facilities Act

Question 14

Proposition 13, the People's Initiative to Limit Property Taxation, limited property tax to

A) 0.1
B) 0.05
C) 0.03
D) 0.01

Question 15

What is a city's multi-year long range plan for improving infrastructure, parks, and community facilities?

A) Tax Increment Financing
B) Impact Fees
C) Capital Improvement Program
D) Rational Nexus

Question 16

What is a rational nexus?

A) The determination of a connection between a charge levied upon a developer and the burden placed on the municipality
B) Public projects that provide specific benefits to particular properties in a specified area
C) A method used to fund all public facilities and services
D) A test of whether conditions of land dedications are proportional to development's anticipated impacts

Question 17

What is not true of a capital improvement program?

A) It seeks to maintain and repair capital assets already in place.
B) It can only have a single funding source.
C) It covers 4 - 6 year time frame.
D) It provides new capital assets to meet the needs of the public.

Question 18

A benefit of tax increment financing is

A) Increased Property Taxes
B) More Jobs
C) Stronger Tax Base
D) All of the above

Question 19

What is at the heart of an argument involving existing and new homeowners within a growing community?

A) Public Facilities
B) Inflation
C) Intergenerational Equity
D) None of the above

Question 20

When individual properties in specific areas are levied by a special charge which is added to their tax bill, it is called

A) Special Assessment Districts
B) Capital Improvement Program
C) Municipal Bonds
D) Tax Increment Financing