Exam 2

Question 1

How long does a developer spend on idea inception

Answer 1

20-30% of the time

Question 2

Ways ideas may evolve (3)

Answer 2

1. A site looking for an idea
2. A use looking for a site
3. Capital looking for a development opportunity

Question 3

Characteristics of a good project (3)

Answer 3

1. Serves user well
2. Adds value to the community
3. Profitable

Question 4

Determinants of property value (5)

Answer 4

1. Location
2. Accesibility
3. Physical property features
4. Neighborhood/environmental factors
5. Public sector factors

Question 5

Ways to generate ideas (7)

Answer 5

1. Brainstorming
2. Nominal group
3. Delphi
4. Environmental scanning
5. Focus groups
6. Surveys
7. Design Charette

Question 6

Back of the envelope pro-forma (3)

Answer 6

Step1: Estimate value after development
Step2: Estimate cost to develop (construction and land)
Step3: Compare value to cost

Question 7

How is the public a partner (5)

Answer 7

1. Planner
2. Regulator
3. Infrastructure Builder
4. Legal Mediator
5. Business Partner

Question 8

Zoning

Answer 8

The principle land use regulation for localities.

Use and density restrictions and design standards

Question 9

Capital Improvement plan

Answer 9

community planning tool used to coordinate the location, timing and financing of capital improvements over a period of usually 4-6 years.

Question 10

Building codes

Answer 10

a set of rules that specify the minimum standards for constructed objects such as buildings and nonbuilding structures

Question 11

Subdivision controls

Answer 11

preliminary plat- map of proposed subdivision
final plat- map of final subdivision
Standards: drainage, streets, sidewalks etc

Question 12

Comprehensive plan

Answer 12

community goals and aspirations in terms of community development.

Question 13

Is planning and zoning conservative or liberal

Answer 13

Both

Question 14

Conservative planning and zoning (4)

Answer 14

Arguments in favor:
1. Protecting property values
2. lowering taxes
3. economic development
4. conserve natural resources
Against:
Inefficient, property rights, affordable housing

Question 15

Liberal planning and zoning (4)

Answer 15

1. Environmental protection
2. reduces social costs of private enterprise
3. access and housing for all
4. promotes environmental justice
   Against:
   exclusionary, impedes progressive design, promotes sprawl

Question 16

Legal basis for land use controls

Answer 16

Legislative and Judical

Question 17

Legislative (2)

Answer 17

1. A state power devolved-lower levels have power
   2.via enabling acts
   based on police power- making of laws

Question 18

Judicial (4)

Answer 18

1. Balance police power against constitutional protection (judge)
2. Roughly proportionality and due process (fair treatment)
3. reasonable economic use remains
4. may require compensation- payout

Question 19

Option property for complete feasibility study (3)

Answer 19

1. Agreement on sole right to purchase at a price within a time- removes the property from the market
2. Consideration/payment is forfeit if no purchase or put toward purchase if there is
3. Gives time for detailed feasibility

Question 20

Types of options (5)

Answer 20

1. Straight option
2. Declining credit option
3. Price escalation option
4. Rolling option
5. Lease and release

Question 21

Straight option

Answer 21

Off the market for a price and time

Question 22

Declining credit option

Answer 22

less option money applied to purchase price as time progresses; encourages early exercise

Question 23

Price escalation option

Answer 23

additional amounts are paid over time to allow for longer options, or higher land price paid

Question 24

Rolling option

Answer 24

allows a builder to control a number of lots and add another once he uses one

Question 25

Lease and release

Answer 25

builder controls more land than needed by paying rent on excess; land is then released to the builder when he pays a certain price

Question 26

How do you prepare an impact study (6)

Answer 26

1. Define scope 2. Inventory existing conditions 3. Compile community standards and guidelines 4. Project assess the impacts 5. Incorporate mitigation measures 6. Monitoring/ enforcement

Question 27

Direct effects/impacts

Answer 27

occur at same time and place of action

Question 28

Indirect effects/impacts

Answer 28

later in time/more distant but reasonably foreseeable

Question 29

Cumulative

Answer 29

from the incremental impact when added to other past, present, and foreseeable future actions by any person/agency

Question 30

Significance impacts to consider

Answer 30

Context: setting of the proposed action and how that impacts society, the affected region, the affected interests, locality. Intensity: Severity of impact; impacts on health, unique features, endangered species, violation of environmental laws or standards

Question 31

Mitigation (6)

Answer 31

1. Not taking risks 2. limiting action 3. repairing or restoring 4. Reducing or eliminating over time 5. Compensating for impacts 6. Monitoring the impact and taking appropriate corrective measures - insufficient for sustainability

Question 32

Public private partnerships

Answer 32

public involvement as developer, lender, investor, lessor, or operator in collaboration with private investors and owners

Question 33

purposes of public private partnerships (5)

Answer 33

1. Stimulate development 2. feasibility 3. affordability 4. raise land value/increment 5. control what occurs on a particular parcel.

Question 34

Federal definition

Answer 34

rent or mortgage < or = 30% of gross household income (for household earning 80% of county median income) Limits: ignores area efficiency, accessibility, property condition and neighborhood condition

Question 35

Net Operating Income (NOI)

Answer 35

NOI = EGI - operating expenses Financial productivity = NOI = ((leaseable sqft x rent) x occupancy) - operating expenses

Question 36

Option

Answer 36

a contract which gives the buyer (the owner) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date.