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As challenges mount from rapid urbanization, deteriorating infrastructure, and climate change, land value capture has never been more important to the future of municipalities.
About the author
Gerald Korngold is a Professor of Law at New York Law School and serves as a Distinguished Scholar at the Lincoln Institute of Land Policy in Cambridge, Massachusetts. An elected member of the American Law Institute and the American College of Real Estate Lawyers, he has lectured nationally and internationally on land ownership and transactions, land use, and property law.
Summary
Land value capture (LVC) is based on a simple core premise: public action should generate public benefit. As challenges mount from rapid urbanization, deteriorating infrastructure, climate change, and more, this funding source has never been more important to the future of municipalities. LVC tools include special assessments, exactions, impact fees, linkage fees, incentive zoning, transferable development rights with contribu-tions, and upzoning with contributions. To date, American law has permitted LVC tools, subject to some limitations. As a result, land value capture is a viable and potentially important method for funding much-needed public infrastructure, improvements, and programs. Policy makers should seriously consider increasing LVC-based financing.
