The design of development cost charge schedules

Abstract
Development cost charges (DCCs) can be used to encourage the efficient use of land or they can be used to help a municipality pay for growth. While the objectives are not mutually exclusive, emphasis on one in particular will influence the design of the development cost charge schedule and affect the efficiency of the emerging settlement pattern. The choice of objective will determine how income is to be redistributed within a city and affects the fairness with which infrastructure costs are distributed. This article discusses the implications of pursuing chosen objectives and considers some of the efficiency, equity and practical issues they raise within stable housing markets and within demand‐driven markets. The equity implication of using DCCs as a tax to cover the cost of growth differ in the two types of market.

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