American Institute of Certified Planners (AICP) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Discover strategies to excel in the AICP Exam. Use flashcards and multiple-choice questions with hints and explanations. Gain confidence and readiness for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the primary use of impact fees in urban planning?

To fund operational expenses
To pay for capital projects
To provide social services
To improve public transportation

The correct answer is: To pay for capital projects

Impact fees are primarily used in urban planning to fund capital projects. These fees are assessed on new development projects and are intended to cover the costs associated with the infrastructure needed to support that development, such as roads, parks, schools, and water systems. By charging developers a fee that correlates to the expected impact of their projects on public services and facilities, municipalities can ensure they have the financial resources necessary to enhance or expand public infrastructure in response to growth. The rationale behind impact fees is to allocate the costs of new development fairly and responsibly, ensuring that existing taxpayers are not burdened by the financial demands of new developments. Impact fees help align development with the necessary improvements in public facilities required to maintain community standards and quality of life.