Challenges

A potential drawback is that exactions may raise the market price of residential properties being developed by increasing the costs of creating such properties. Developers pass on these costs to consumers in varying degrees in the form of higher prices, limiting the ability of low-income/low-wealth families to own a home.

Opponents contend that governments utilize exactions to rectify problems not directly attributable to new development.  In California, some new developments come with costly exactions for school construction due to constrained funding at the state level. Because of the broad social benefits inherent in an educated population, there is continuing debate over whether school costs should be funded through exactions or shared by the larger community.