©2011 cengage learning. chapter 15 ©2011 cengage learning required government reports
TRANSCRIPT
©2011 Cengage Learning
Chapter 15
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REQUIRED GOVERNMENT REPORTS
Government agencies study proposed projects
Approve the project
Modify the project or subject to conditions
Deny the project
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Types of Required Government Reports
Two Important AgenciesUnited States Department of Housing and
Urban Development (HUD) Environmental Protection Agency (EPA)
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HUD oversees the activities of several departments that influence real estate development.
Federal Housing AdministrationPublic Housing AdministrationCommunity Facilities AdministrationUrban Renewal AdministrationOffice of Interstate Land Sales
Registration
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Federal Environmental Legislation impacting real estate.
National Environmental Policy Act (NEPA)Federal Water Pollution ActsClean Air ActNoise Control ActNational Coastal Zone Management ActFlood Disaster Protection ActFederal Wetlands Act
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State Regulations Minimum construction codes State health regulations New subdivision reportsZoning Environmental regulations
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Local Real Estate CodesBuilding permits for constructionSubdivision reports Site approvals & conditional use permitsEnvironmental reviews
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Environmental RegulationSpecial environmental agencies ensure that
the environmental impact of a real estate project is studied before a building permit is granted.
Environmental impact reportsEnvironmental review boards
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Cost vs. Benefits
Costs & BenefitsPrivate costsSocial costsPrivate benefitsSocial benefits
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Private CostsPreparation costsAgency review feesHolding costsInflation costsOverhead Costs
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Social CostsDelay of new jobs and income
Increases in consumer prices
Inflation
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Private Benefits/Social BenefitsHigher real estate
values
Less environmental damage
Better land planningConsumer protectionImproved SafetyFostering of social
integration
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Legislators pass land-use laws and then create government agencies to enforce these laws.
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The trend seems to indicate that more government reports will be required in the future!
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