Question 1

A developer plans to place a subdivision slightly outside the city limits in an area that is rapidly developing.However,the city claims to have the right to control urban development even in the proposed area.The right the city is attempting to invoke is referred to as:

Accepted Answer

Extraterritorial jurisdiction is a legal concept that allows a city to regulate development in an area outside its city limits but within its designated extraterritorial jurisdiction (ETJ). This means that the city can enforce zoning ordinances, land use regulations, and other development standards in the proposed subdivision area.

Question 2

Which of the following tools of public land use control represents the earliest method of police power to regulate land use? (Hint: Standards for energy efficiency and sustainability are the most recent trends in the application of this land use control)

Accepted Answer

Building codes are the earliest method of police power to regulate land use, historically developed to address safety concerns related to construction practices and materials.

Question 3

The right of government to acquire private property,without the owner's consent,for public use in exchange for just compensation is referred to as:

Accepted Answer

The term "eminent domain" refers to the right of government to acquire private property for public use, as long as just compensation is provided to the property owner. This power is granted to the government through the Fifth Amendment of the U.S. Constitution. Inverse condemnation refers to a situation in which the government takes private property without formally exercising its eminent domain power, while regulatory taking refers to a situation in which government regulations restrict the use of private property to the extent that it is equivalent to a physical taking of the property. Dedication refers to the process of transferring ownership of private property to the government for a specific public use, such as a park or roadway.

Question 4

A major problem in buildings constructed prior to the early 1970's,which of the following environmental hazards commonly associated with insulation has been the focus of costly cleanups at many public buildings,especially schools?

Accepted Answer

Asbestos was commonly used as insulation in buildings prior to the early 1970's, and it has since been linked to serious health problems such as lung cancer and mesothelioma. Many public buildings, especially schools, have had to undergo costly cleanups to remove asbestos from their insulation.

Question 5

When land use controls impose exceptional hardship and loss of value,a relief mechanism must be provided.This relief is referred to as a:

Accepted Answer

A variance is a type of relief mechanism that allows property owners to exempt from certain land use controls if they can show that these controls result in exceptional hardship or loss of value. The zoning board of appeals or board of adjustment is typically responsible for granting variances. Building codes, zoning ordinances, and comprehensive plans are all land use controls rather than relief mechanisms.

Question 6

Growth management laws at the state level require local jurisdictions to plan for and meet certain requirements.One such requirement prohibits local development unless adequate infrastructure,schools,police/fire protection,and social services have been put in place first.This requirement is referred to as the:

Accepted Answer

The requirement described in the question is commonly known as the concurrency requirement, which is a type of growth management law at the state level that requires local jurisdictions to ensure that public facilities and services, such as roads, water supply, and schools, are adequate to support new development before the development is allowed to proceed. The purpose of this requirement is to prevent development from outpacing the capacity of public infrastructure and services, which can lead to congestion, environmental degradation, and reduced quality of life.

Question 7

All of the following statements are true in describing the determination of just compensation EXCEPT:

Accepted Answer

The determination of just compensation is not solely based on the current use of the property, but rather its highest and best use at the time.

Question 8

Externalities can play an important role in determining a property's price,either by adding value through positive externalities or by diminishing value through negative externalities.Which of the following is most likely to be considered a negative externality?

Accepted Answer

Public assistance facilities such as homeless shelters are often perceived as a negative externality since they can attract criminal activities and create safety concerns for the residents in the surrounding area. This can result in a reduction in property values for homes located near such facilities.

Question 9

Real estate taxes represent the largest single source of revenue for a large portion of local governments.Most property taxes are applied in relation to the value of the property,or in other words,they are:

Accepted Answer

Ad valorem taxes are property taxes that are proportionate to the value of the property. Therefore, this is the best choice to describe property taxes.

Question 10

Development taking place in rural areas well beyond the urban fringe is commonly referred to as:

Accepted Answer

Urban sprawl refers to the spread of urban development into rural areas, often characterized by low-density, automobile-dependent development beyond the boundaries of more densely populated cities or towns.

Question 11

In order for the board of adjustment to approve a variance,all of the following conditions must be met EXCEPT:

Accepted Answer

The condition being common to other parcels of land in the vicinity is not a requirement for a variance. Variances are typically granted when the condition is unique to the lot, not when it is common to other parcels.

Question 12

A traditional zoning ordinance includes all of the following EXCEPT:

Accepted Answer

A traditional zoning ordinance typically includes minimum setback requirements, minimum lot dimensions, and provisions for special use districts. However, performance standards are not typically included as part of a traditional zoning ordinance. Performance standards are regulations that limit the impacts of an activity or development, such as noise or air pollution, rather than specifying what type of structures or land uses are allowed in a particular zone.

Question 13

State and federal control of land uses has increased greatly over the past 40 years due in part to an increased awareness of environmental hazards.Which of the following federal environmental control laws was responsible for establishing the "Superfund" to finance emergency responses and cleanups of abandoned and unregulated waste dumps?

Accepted Answer

The Comprehensive Environmental Response Compensation and Liability Act (CERCLA) of 1980, also known as the Superfund Act, established the Superfund program to fund the cleanup of hazardous waste sites that have been abandoned or are unregulated. This law provides the federal government with the authority to respond to releases or threats of hazardous substances, and holds responsible parties liable for the cost of the cleanup.

Question 14

When a zoning ordinance is revised,some existing land uses then fall outside the new zoning classification.These land uses are referred to as:

Accepted Answer

Nonconforming uses are land uses that were in existence prior to the adoption of a zoning ordinance or amendment that no longer conform to the new regulations. They are allowed to continue despite not meeting the current zoning requirements, but may have restrictions on expansion or changes to the use.

Question 15

Negative externalities can diminish a property's value by imposing costs on the community at large.In order to offset this detrimental impact,economists advocate "internalizing" these externalities by implementing:

Accepted Answer

Impact fees are charges levied on developers to help offset the costs of externalities associated with new development (such as increased traffic, strain on public services, etc.). By internalizing these costs, the negative impact on the community is diminished and property values are less likely to decrease. Performance standards, growth moratoriums, and planned unit developments are all tools that can be used to manage growth and development, but they may not directly address the issue of negative externalities.

Question 16

While most real property in the United States is privately owned,government regulations limit private property use and therefore play an important role in the determination of property value.Proponents of government intervention argue that regulation is needed to address the unintended and unaccounted for consequences of one land user upon others,more commonly referred to as:

Accepted Answer

The term "externalities" refers to the unintended and unaccounted for consequences of one land user upon others. Government regulations are put in place to address these externalities, which include things like pollution and noise that can impact neighboring properties. Therefore, C is the best choice as it directly relates to the concept of unintended consequences that government regulation aims to address.

Question 17

After a structure is built,it is impractical for even a building expert to fully assess the quality of the construction and the safety hazards it may harbor.This is an example of which of the following problems that plagues private real estate markets?

Accepted Answer

The scenario described in the question is an example of incomplete information, where even a building expert cannot fully assess the quality of construction and safety hazards. Incomplete information is a common problem in private real estate markets where buyers and sellers do not have access to all the relevant information.

Question 18

While most property taxes are levied in order to finance services that benefit the community,special assessments are levied to pay for specific improvements that benefit a particular group of properties.All of the following characteristics of special assessments are true EXCEPT:

Accepted Answer

Special assessments are not considered ad valorem taxes because they are not based on the value of the property. Instead, they are based on the specific improvements that benefit the property.

Question 19

A contemporary planning movement that explicitly advocates a traditional grid pattern of development designed to give pedestrian life priority over motor vehicles (e.g. ,including narrowed streets with houses close to the street and garage access through side alleys)is commonly referred to as:

Accepted Answer

The description given in the question is characteristic of the New Urbanism movement, which seeks to create walkable, mixed-use communities with traditional elements such as grid patterns, narrower streets, and garage access through alleys, all aimed at prioritizing pedestrians over cars. Option A, urban sprawl, refers to uncontrolled and unplanned growth and expansion of cities and suburbs. Option B, urban service area, refers to the designated region where municipal services are provided, like water, electricity, and sewer. Option C, traditional residential planning, is a generic term that does not specifically refer to the grid patterns and pedestrian-oriented approach of the New Urbanism movement.

Question 20

It was not until the late 1960's that land use controls moved to the forefront of public interest,as the belief that the environment was an endless and costless resource was replaced with the notion that the world was a closed system with limited space,air,water,and other resources.Environmentalists coined which of the following terms to refer to this new point of view?

Accepted Answer

Environmentalists coined the term "Spaceship Earth" to refer to the new point of view that the world was a closed system with limited resources.

Quiz 4: Government Controls and Real Estate Markets