Land Value Capture in the United States : Funding Infrastructure and Local Government Services (Lincoln Institute of Land Policy 2022)
This research report published by the Lincoln Institute of Land Policy addresses the public policy and legal issues inherent in land value capture vehicles. LVC allows government to capture the increased value accruing to properties due to government infrastructure projects, such as new subways, and the adjusting of zoning regulations to allow owners to build more densely. This sharing of the increased value of private lands due to governmental action is required by both equity and efficiency. LVC tools include exactions or in-lieu fees, impact fees, linkage fees, special assessments, incentive zoning payments via contributions of infrastructure or cash, and transfer of development rights. The report examines these vehicles, examples, and the policy debates about them. It provides the first comprehensive survey of the American LVC space. Moreover, the report shows that as long as local governments adhere to constitutional principles stated in the Takings Clause of the Fifth Amendment of the U.S. Constitution, LVC vehicles should be sustained by the courts. Indeed, various LVC methods have been deployed and upheld for a century in the U.S. The report analyzes the competing constitutional arguments on these issues. Finally, the report provides suggestions for how policy makers and scholars might conceptualize and analyze LVC programs going forward. The full report is available for free download at the Lincoln Institute of Land Policy website: https://go.lincolninst.edu/l/153411/2022-09-07/pq6jy2