ABSTRACT
There are some who argue that system development charges (SDCs) are bad public policy because of several perceived adverse effects. This chapter begins with a review of those concerns; but first, a basic economic lesson. Developers and some community groups may argue that SDCs will be bad for the production of low- and moderate-income housing. Most developers feel that SDCs represent a shirking of public responsibility for financing the infrastructure necessary to support new developments. SDCs can be viewed as a facility pricing instrument that guides development timing and location more efficiently than many alternative policies. Most growing communities, no matter how large or small, can administer SDC programs with a plan, a capital improvements program, a set of forms, an inexpensive microcomputer, and a regular line administrative person. SDCs accommodate development by expanding supply of buildable land and may actually dampen price effects on both new and existing housing.
