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FIN331 (Subject) / Real Estate (Lesson)

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• Who owns the most real property in the US? Private Owners
• Unregulated competitive biding would bring the most.. productive use of each parcel and the price for the parcel would exactly reflect its usefulness, but this doesn t happen for a few reason, as externalties
• Externalities is the uninteded and anaccounted for consequences of one land user upon others...  *shopping center would harm to neighboors through increased traffic delays *increased storm runoff*light pollution*  
• Externalities is the uninteded and anaccounted for consequences of one land user upon others...  *shopping center would harm to neighboors through increased traffic delays *increased storm runoff*light pollution*  
• Zoning, every local government has adopted regualtions that govern the creation of subdivisions, what is their purpose? The purpose ofg this regualtions is to promote proper arrangements anmd coordiantion of *streets, in rel. to existing streets The rugualtion prove guidelines for the layout of lots, for adequate and convenient provision of open spaces, utilities, recreation and access for services and emergency vehicles. Also water, drainage, sewer and other sanitary facilities.  
• Which plan does a developer has to create and who is included(zononig) *Preliminary subdivision site plan, is oresented in a public meeting where *local officers(utility, emergency service, school, transport -officers can comment on this plan and make challenges) *it is subdivided and normally dedicated to the local government(which will maintain them)
• What and who is the planning or zoning commision? *is appointed by the elected government body to oversee implementation of the zoning or subdivision ordinance *the comission will review request(more units on a appartment zone) and forward a recommendation to the elected governing body for final action
• which are the criteria for rezoning requests? -will new zoning be compatible with the comprehensive plan? -should the comprehensive plan be modified? what effect will the new zoning have on surrounding land uses and on the larger community?
• What is rezoning request approved for? If it is consistent with comprehensive plan.
• What happenes if the rezoning is inconsistent with the comprehensive plan? *maybe modify comprehensive plan *planning and zoning stuff must answer: how does the proposal affect larger community? *-will form a recommendation on zoning and change on relate comprehensive plan *this will go to elected government body for final action
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• What is the board of adjustment? A second appointed board for administration of the zoning ordinance
• What does the board of adjustment? This board is charged with reviewing petitions for varinaces They must determine if the rezoning requests criteria are met., if yes they will grant variance. They make the final adjustments, which can only be appealed in court.
• Who is the site plan review board? Zoning and planning comission
• what does the site plan review board? The site plan review board involve a diversity of views, interests and voices including the general public. It is a particulary complex and ucertain process from a developer's point of view. It is an open and informal process, whoch leaves a lot of room for misunderstandings and clashes in view. One of the riskiest points in the developments process
• Where does site plan arise from? Proposed subdivision and proposed appartment.
• What is traditional zoning be critizised for? It has been accused of being oblivious to effect land use on traffic and environmental systems also it is far too rigid, forcing uniform types and desity of development where variation would be much better
• What are the PUD requirements? Planned Unit Development, setbacl requirements and appartments desities(units per acre) are allowed to vary in some areas in exchange for enhancements such as larger areas of open space and *nature preservation *public facilities *neighboorhoods  
• What do PUDs allow? residential desity range from single family detached to multifamily and often include supporting commercial development
• What do PUDs allow? residential desity range from single family detached to multifamily and often include supporting commercial development
• What fails traditional zoning? *concerns for urban systems(traffic, watershed, green space, air quality or other aspects ofthe environment  
• What can fill the void of traditional zoning failures? and how? A performance standards *permits for tree canopys *traffic generation limits can be made a part of the development permission
• The primary means that economists advocate to internalize externalities is by.. charging compensation fees
• What is an impact fee? impact fee are the fees that a developer must pay because of the imposes externailty costs on the community at large
• Why are there growth destrictions? Because growth can impose externalities on a community, local governments imposed this restruction
• What is meant by an growth moratorium? an extrem form of a growth restiction also: proihibition of development can be occured by a public health, safety or welfare problem *might be imposed from 1-3 years to allow time to solve the problem  
• Who regulates environmental hazard? federal, state and local agencies such as *EPA(einvironmental protection agency) *US department of housing *urban development    
• What means the environmental hazards to owners? Huge dollar amounts of potential liability of environmental hazards are found on their properties.  
• What is meant under the "Superfund legislation" Comprehensive and Environmental Response Compensation and Liability Act 1980 and subsequent amendments, porperty owners must clean up many kinds of toxic wastes if they knew or had any reason to know the property was contamined when they purchased it, owners have to clean up toxic wastes on their properties, even if they were unaware of its existence when they bought the property.
• What is the clean water act? *most far reaching environmenatal acts *has imported permitting requirements on millions of acres of wetlands, which has reached the US supreme court
• what are toxic wastes? several types of hazardous materials are often present in properties and these materials are a major concern of property owners, prospective buyers, lenders and the public. *asbestos*fiberglass*PCBs*LUSTs
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• What is eminent domain? The right of government to acquire private property, without the owners's consent  for public use in exchange for just compensation
• What is condemnation? procedure for eminent domain?
• What means the term public use? taking private property for successful challenges to whether a taking is for a valid public use area *evolved to one no longer requiring actual physical use by condemning agency  
• What is just compensation? The market value of the property or the total value of all financial loss if partially taken. the value of the property is based on its highest and best use at the time it is condemned, not necessarily its current use *restores the property owner to a financial position equivalent to that existing before the property was taken    
• What is inverse condemnation? regulatory taking> Is an action, intiated by a property owner against the government to recover the loss in porperty value attributed to government activity (coal mining) regulatory taking: if reguaktion of property goes to far, this is considered as taking in eminent domain taking, compensation is almost always expected and required, yet courts usually have refused to compensate owners whose rights have been limited or taken by zoning laws.      
• What represents real estate taxes? The largest single source of revenue for local governments
• what are *ad valorem taxes* applied in relation to the value of the property *levied between 1-4% of propertys market value  
• For what are government taxes used? finance public services they provide(police, fire, schools, streets, curbs, sewers, street lightning parks, social services
• Who collects property taxes? Single county offices, several tax jurisdictions
• Determine a tax rate evalutaing both: budget and value of its tax base *estimating all purposes expenditures of each unit within the jurisdiction R=(E-I)/(VT-VX) R=tax rate E=budget expenditures, forecasts expenditures for next year I=income form sources other tan property,  tax revenue from nonproperty sources VT=total assessed value of all properties, community contrains property VX=value of property exemptions, total value of properties exempt from the property   R= % required to pay in communtiy for property
• What are tax-exempt properties? these include government-- owned  properties and others exempted by state law or the state constitution.(schools, hospitals, places of worship)
• How are tax rate stated? in mills or dollars per $1000 of value... millage rate.. $20 of $1000= 20 mills
• Homestead Exemption is a deduction from the value of what they home, the biggest is the homestead... if the owner occupies a residence as home for his family   some states allow this too for agricultural, historical property, dor disabled persons, veteransm widows
• Who does we calculate tax liability the tax assessor appraises all taxable properties in jurisdiction for property tax assessment
• What is assess value? The value of taxation , it is always reltaed to the market value this value should be calculated of market value, such as 50% and 80%, today states require that assessed values be 100% of market values as defined in the law or as interpreted by a state agency.
• what is a an example of a sate agency department of revenue
• Consider a property apparaised for 150000 in a state that requires tax assessments to be 90% market value. Assume the owner qualifies for 25000 homestead exemption.. find the taxable value  Market value=1500000*0.9 Assessed Value=135000- Exemptions(25000)=110000
• Millage rate, taxes levied... take taxable value(is the thing with the expemtions) *sum of millage rate or Assessed value(without tax exemptions) * sum millage rate
• Calculate effective tax rate Sum of taxes levied/market value, it is important for comparisons purposes.. since this can not vary... this is the most effective one  
• What is special assessment? This are levied tp pay for specific improvements that benefit a particular group of properties   used to finance streets, storm water systems...   this are applied as a pro rata charges.. this are may shared eually by all parcels located at one area

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