logo
Inspiration Card
Financing Options
Public

F20 Development charges

20_Development charges_© 1xpert - Fotolia.com
QR Code for https://unalab.eu/en/financing-options/development-charges
Description

Development charges are a one-time levy on developers to finance the costs of the additional infrastructure associated with new development or, in some cases, redevelopment. These charges are levied for works constructed by the municipality, and the funds collected must finance the infrastructure needed for the development.

Example

The Portland metropolitan area has implemented development charges in 2015 after reviewing their budgets and park & recreation strategy, to ensure sufficient financing for capacity increasing and maintenance of park facilities. The charges are 1/5 of the financing sources of the organisation and can only be used for these park facilities that directly affect users positively. Using investment per person provides flexibility for the City to provide the highest priority needs in each area of the City, and avoids the constraints of the previous methodology that is based on acres of park per 1,000 population.

Source D6.3 Business Models and Financing Strategies