Fiscal Zoning, Fiscal Reform, and Exclusionary Land Use Controls

Abstract
This article measures the fiscal impact of housing development on local communities in New Jersey, and the degree to which current zoning patterns appear to reflect the fiscal costs of growth. It reports several conclusions: 1. The fiscal impact of new housing depends on both municipal and housing characteristics. Generalization regarding the fiscal impact of growth is hazardous. 2. The fiscal impacts of growth are often favorable, particularly in poorer communities. On average, new housing does not impose major fiscal costs on most municipalities. 3. Current zoning patterns do not accurately reflect fiscal incentives. This may result from ignorance, or nonfiscal motives may dominate local planning consideration. 4. Changes in state-local fiscal relationships may be neither necessary nor sufficient to accomplish change in local land use planning policies.

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