Permit Technician Practice Test

Exaction refers specifically to the requirements placed on developers to provide public amenities or infrastructure improvements as a condition of obtaining development approval. This practice is grounded in the principle that when a developer creates new projects that will increase the demand for public services or infrastructure, they should contribute to the costs associated with those demands. Exactions may include requirements to build parks, widen roads, or provide other necessary public facilities aimed at benefiting the community impacted by the new development.

While taxes imposed on new construction projects, restrictions on land use changes, and approval processes for environmental assessments are related to land development, they do not encapsulate the concept of exaction. Exactions are distinctly focused on the contributions developers must make to mitigate the impact of their projects on the community and to ensure adequate public services are maintained or enhanced.