ABSTRACT
In this chapter, the authors describe what is mean by regulation and its costs. They present conceptual framework, which is built on the decision calculus of the developer. The authors deal with a discussion of the importance of the cost and incidence issues. S. Seidel identified several types of government regulations affecting the housing market. Environmental regulations that are intended to minimize the effect of development on land and waterways, especially in wetlands, coastal zones, near streams, and in other “critical” environmental areas. Financial impact regulations, which include impact fees, hook-up charges, and negotiated contributions that are costs of entry and that offset the cost of services that a municipality will be required to provide to new residents. The timing of the development process and the accuracy of all actors' expectations determine the incidence of the regulatory burden. The chapter also presents an overview of the key concepts discussed in this book.
