Which of the following describes impact fees?

Impact fees are financial charges imposed on developers specifically to fund community improvements that are necessitated by new development projects. This mechanism ensures that the costs associated with infrastructure enhancements—such as roads, schools, parks, and utilities—are covered by the developers whose projects contribute to the increased demand for those public services. The primary purpose of impact fees is to allocate a fair share of the costs of growth to those who are generating it, thereby preventing existing residents from bearing the complete financial burden of necessary upgrades and expansions in public infrastructure.

The context of the question helps clarify the unique role that impact fees play in the development process, distinguishing them from taxes, fees related to zoning boards, and costs connected to land surveying—all of which have different purposes and implications in real estate development.