Description

Land value capture (LVC) is based on a simple core premise: public action should generate public benefit. As challenges mount from rapid urbanization, deteriorating infrastructure, climate change, and more, this funding source has never been more important to the future of municipalities. LVC tools include special assessments, exactions, impact fees, linkage fees, incentive zoning, transferable development rights with contribu-tions, and upzoning with contributions. To date, American law has permitted LVC tools, subject to some limitations. As a result, land value capture is a viable and potentially important method for funding much-needed public infrastructure, improvements, and programs. Policy makers should seriously consider increasing LVC-based financing.