Understanding Concurrency Ordinances: A Guide for Homebuyers and Professionals
In the world of real estate development and urban planning, a Concurrency Ordinance is a regulatory policy designed to ensure that public infrastructure—such as roads, water systems, schools, and sewage treatment—can keep pace with new development. Essentially, these ordinances mandate that the necessary infrastructure must be in place or "concurrent" with the impacts of a new construction project before that project is granted final approval. It acts as a safeguard against over-development, preventing a community from becoming overwhelmed by new residents before the local services are prepared to support them.
Detailed Explanation: How Concurrency Works
Concurrency ordinances are typically implemented at the municipal or county level as part of a jurisdiction's "Growth Management Plan." The primary objective is to maintain an established "Level of Service" (LOS) for public facilities. Here is how the process generally functions:
- Infrastructure Capacity Assessment: Before a developer receives a building permit, the local government evaluates whether existing infrastructure has sufficient capacity to handle the projected increase in demand created by the new project.
- Level of Service (LOS) Standards: Every municipality sets specific benchmarks for public services. For example, a city might require that a road segment maintain a certain traffic flow rating, or that water facilities be able to accommodate a specific volume of gallons per day per household.
- Mitigation Requirements: If a proposed development would cause the LOS to drop below the required standard, the developer is often required to "mitigate" the impact. This may involve the developer paying "impact fees" to fund infrastructure improvements or physically constructing the necessary improvements themselves (such as widening a road or extending a sewer line) as a condition of their permit.
- Concurrency Certificates: In many jurisdictions, developers must secure a "Certificate of Concurrency" or a similar permit to prove that they have satisfied these requirements before breaking ground.
Expert Tip: If you are looking to purchase land for development or investing in a large-scale project, always request a "Concurrency Status Report" from the local planning department early in your due diligence phase. Understanding whether a property has an existing, active concurrency certificate—or if the local infrastructure is currently at capacity—can save you significant time and prevent costly delays in the permitting process.
Key Takeaways
- Infrastructure-First Policy: Concurrency ordinances prioritize public service standards by requiring that infrastructure is ready at the same time as new housing or commercial units.
- Impact on Development: These regulations can affect construction timelines and costs, as developers may be held responsible for infrastructure upgrades if existing systems are at capacity.
- Market Stability: By preventing rapid, unmanaged growth, concurrency ordinances help maintain property values and the quality of life within a community.
- Due Diligence: For real estate professionals and buyers, checking the concurrency status of a lot is a critical step in verifying the viability of a development project.
This content is for informational purposes only and does not constitute legal or financial advice. Regulatory requirements vary significantly by location; always consult with a qualified real estate attorney, urban planner, or your local municipal office for specific guidance regarding your property. If you have further questions, you may also get in touch with us at [email protected].