Development charges / impact fees / developer exactions /
|
Developer receives development rights in exchange for obligation to compensate in cash (or provide in-kind) the cost of certain items of public infrastructure benefitting larger area.
|
- Impact fee formula introduced to fund construction of 21-km highway connector between Santiago and northern suburbs
- In kind/cash developer exactions in cities of Columbia and Chile
|
Sale of development rights
|
Development rights or certificates of additional density are sold for cash to finance infrastructure improvements
| |
Land pooling / readjustment
|
Land owners or occupants voluntarily contribute part of their land for infrastructure development and for sale to cover some project cost. In return, each land owner receives a serviced plot of smaller area with higher value within the same neighborhood.
| - About 1/3 of total urban area in Japan and 1/4 of total urban area in South Korea were developed through LP/R.
- Used in many countries to facilitate peri-urbanization, urban regeneration including slum upgrading, and post-disaster reconstruction.
|
Introduction of land value taxes
|
Levy on value of underlying land “as unimproved” (as a substitute or supplement to property tax levied to buildings). Stimulates development to avoid taxation of idling land. Generates property tax and economic activity. Can be effective in areas plagued by disasters
| - Separate taxation of land is introduced in select countries (Taiwan)
- Land value tax was temporarily introduced in cities of Baja California (Mexico) in early 1990s
|
|
