Make Development Decisions Predictable, Fair and Cost Effective
For a community to be successful in implementing smart growth, the concept must be embraced by the private sector. Only private capital markets can supply the large amounts of money needed to meet the growing demand for smart growth developments. If investors, bankers, developers, builders and others do not earn a profit, few smart growth projects will be built. Fortunately, government can help make smart growth more profitable for private investors and developers. Since the development industry is highly regulated, the value of property and the desirability of a place are affected by government investment in infrastructure and government regulation. Governments that make the right infrastructure and regulatory decisions will support fair, predictable and cost-effective smart growth.
Despite regulatory and financial barriers, developers have created successful examples of smart growth. In many cases, doing so has required them to spend time and money getting variances to the codes. Expediting the approval process is especially helpful to developers, for whom "time is money." The longer it takes to get approvals, the longer the developer's capital remains tied up in land and not earning income. For smart growth to flourish, state and local governments need to make development decisions about smart growth more timely, cost-effective, and predictable for developers. By creating a supportive environment for development of innovative, pedestrian-oriented, mixed-use projects, government can provide smart growth leadership for the private sector.
More information from Smart Growth Network partners:
Regional Equity and Smart Growth
www.fundersnetwork.org/learn/resource-details/regional_equity_and_smart_growth1
Enterprise Green Affordable Housing Policy Toolkit
www.practitionerresources.org/cache/documents/673/67398.pdf
Overcoming Obstacles to Smart Growth through Code Reform
www.lgc.org/freepub/docs/community_design/sg_code_exec_summary.pdf
Smart Growth Principles
