Certified Building Official Management Practice Exam

What type of fees are typically collected from developers for off-site improvements?

1. Usage fees

2. Creative fees

3. Impact fees

4. Maintenance fees

The correct answer is: Impact fees

Impact fees are typically collected from developers to fund off-site improvements needed as a result of new development. These fees are based on the premise that new developments increase the demand for public services and infrastructure, such as roads, schools, parks, and utilities. Therefore, developers contribute financially to the enhancements and expansions of these services, ensuring that the existing community is not overly burdened by the added population. Impact fees are specifically designated for infrastructure projects that mitigate the effects of development, making them a crucial tool for local governments to manage growth sustainably and equitably. They are calculated based on various factors, including the size and scale of the development, as well as the anticipated impacts on public resources. In contrast, usage fees typically relate to the direct use of a service or facility by an individual or organization; creative fees do not have a standard meaning in this context and are not recognized as a common practice in development finance; maintenance fees generally refer to costs associated with the upkeep of facilities or services rather than the initial burden of new development.