©2011 Cengage Learning

Chapter 15 ©2011 Cengage Learning REQUIRED GOVERNMENT REPORTS

Government agencies study proposed projects Approve the project Modify the project or subject to conditions Deny the project ©2011 Cengage Learning Types of Required Government Reports

Two Important Agencies United States Department of Housing and Urban Development (HUD) Environmental Protection Agency (EPA) ©2011 Cengage Learning

HUD oversees the activities of several departments that influence real estate development. Federal Housing Administration Public Housing Administration Community Facilities Administration Urban Renewal Administration Office of Interstate Land Sales Registration ©2011 Cengage Learning

Federal Environmental Legislation impacting real estate. National Environmental Policy Act (NEPA) Federal Water Pollution Acts Clean Air Act Noise Control Act National Coastal Zone Management Act Flood Disaster Protection Act Federal Wetlands Act ©2011 Cengage Learning

State Regulations Minimum construction codes State health regulations New subdivision reports Zoning Environmental regulations ©2011 Cengage Learning

Local Real Estate Codes Building permits for construction Subdivision reports Site approvals & conditional use permits Environmental reviews ©2011 Cengage Learning

Environmental Regulation Special environmental agencies ensure that the environmental impact of a real estate project is studied before a building permit is granted. Environmental impact reports Environmental review boards ©2011 Cengage Learning

There is no free lunch. Any use of resources, whether land, labor, or capital, incurs a cost to someone. Someone pays! ©2011 Cengage Learning Cost vs. Benefits

Costs & Benefits Private costs Social costs Private benefits Social benefits ©2011 Cengage Learning

Private Costs Preparation costs Agency review fees Holding costs Inflation costs Overhead Costs ©2011 Cengage Learning

Social Costs Delay of new jobs and income Increases in consumer prices Inflation ©2011 Cengage Learning

Private Benefits/Social Benefits Higher real estate values Less environmental damage Better land planning Consumer protection Improved Safety Fostering of social integration ©2011 Cengage Learning

Legislators pass land-use laws and then create government agencies to enforce these laws. ©2011 Cengage Learning

The trend seems to indicate that more government reports will be required in the future! ©2011 Cengage Learning