©2011 Cengage Learning. Chapter 15 ©2011 Cengage Learning REQUIRED GOVERNMENT REPORTS

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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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