Adequate Public Facilities Ordinance
Definition and meaning of Adequate Public Facilities Ordinance in real estate.
An adequate public facilities ordinance is a local government regulation that conditions the approval of new real estate developments on the availability of sufficient public infrastructure. This infrastructure includes roads, schools, sewers, and water systems to support the new project.
In more detail
These ordinances are designed to manage growth and prevent new developments from overwhelming public services. If local infrastructure is deemed inadequate, the local government may delay development approval until public improvements are made. Alternatively, developers may be required to build the necessary infrastructure themselves or pay impact fees to fund the expansion.
While these ordinances protect community resources, they can also increase development costs and limit the housing supply. Land investors and developers must research these regulations during their due diligence phase.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Applies to | Developers and new construction |
| Required by | Local municipal governments |
| Watch out for | Significant project delays |
A developer planning a new subdivision is required by a local adequate public facilities ordinance to fund the expansion of a nearby sewer line before building permits can be issued.
Frequently asked questions
Who pays for infrastructure under these ordinances?
The costs typically fall on the developer, who may have to build the infrastructure or pay fees to the city, though costs are often passed down to home buyers.
What happens if local schools or roads are overcrowded?
Under the ordinance, the local planning board can defer approval of a proposed development until the city expands school capacity or improves the affected roads.