Legal Definitions - subdivision exaction

A subdivision exaction is a requirement, often a payment of money, dedication of land, or provision of services, that a local government imposes on a developer as a condition for approving their plan to divide a larger piece of land into smaller lots for development or sale. These exactions are typically intended to ensure that new developments contribute to the public infrastructure and services (like roads, schools, parks, or utilities) that will be impacted or needed by the new residents.

• Example 1: Road Infrastructure Contribution

  Imagine a real estate developer plans to subdivide a large tract of farmland into 50 new residential lots. The local city council reviews the proposal and determines that the increased traffic from these new homes will overwhelm the existing two-lane road leading to the subdivision. As a condition for approving the subdivision, the city requires the developer to contribute a specific sum of money to a fund dedicated to widening that road and installing a new traffic light.

  This illustrates a subdivision exaction because the city is imposing a financial contribution on the developer. This payment is a mandatory condition that the developer must meet to get approval for their subdivision plan, specifically to mitigate the impact of the new development on local road infrastructure.

• Example 2: Parkland Dedication

  Consider a company that wants to subdivide a large undeveloped parcel of land into 200 individual lots for a new master-planned community. The county planning department, recognizing the need for recreational space for the future residents, requires the developer to dedicate 10 acres of the subdivided land to the county for the creation of a public park. Alternatively, if dedicating land isn't feasible, the county might require a cash payment "in lieu" of land for park development elsewhere.

  This is a subdivision exaction because the county is requiring the developer to provide a specific public amenity (land for a park) as a prerequisite for granting permission to subdivide and sell the lots. This ensures that the new community has adequate public recreational facilities.

• Example 3: School Impact Fees

  A developer proposes to build a large subdivision with 300 new single-family homes in a rapidly growing suburban area. The local school district projects that these new homes will bring a significant number of new students, potentially overcrowding existing schools. To address this, the county imposes a "school impact fee" on the developer for each new residential lot. This fee is specifically earmarked for funding the construction of new classrooms or expanding existing school facilities.

  This demonstrates a subdivision exaction because the county is levying a financial charge on the developer, directly tied to the approval of the subdivision. The purpose of this fee is to offset the increased demand on public services—in this case, educational facilities—created by the new development.