Financing

There are few "hard" costs to the jurisdiction beyond administration. Developers build in the cost of compliance into overall project budgets. In some cases, this becomes a loophole. (see Challenges below).  Methods of payment and timing vary by type of exaction. If a developer is paying a fee, it is usually paid when the building permit is issued. For the commercial exactions, the costs may be paid over a period of several years, allowing the developer to use income from the development's operations rather than having to make the payment before the development is built. If a jurisdiction is providing subsidy to a new development, exactions may offset the costs of the subsidy.