The Korea Local Administration Review

This research investigates what U.S. metropolitan city housing characteristicsaffect the adoption of development impact fee policy. Local governments havehad continual problems with financing infrastructure to support new residentialdevelopment because the decline of Federal and State aid and the resistance toany kind of local taxes. Public choice theory is employed to be explaining theprocess of development impact fee policy adoption for new residentialdevelopment in the literature review, explaining that fiscal stress on localgovernments led to their widespread development impact fee policy adoptionwithout prior and effective comparative evaluations. A binary logistic regressionmodel is developed as for this research design. This research examines arandom sample of 276 local governments out of 827 local governmentsexceeding 25,000 in 97 Metropolitan Statistical Areas (MSAs) havingpopulations exceeding 500,000. Empirical evidence provides the information ofcity housing characteristics for local governments to adopt development impactfee policy. These findings have encouraged additional research that helps clarifyand understand the importance of different city factors for adoptingdevelopment impact fee policy.