Exactions

Exactions are requirements imposed by local governments on developers to provide public benefits or mitigate the impacts of their projects. These can include contributions such as infrastructure improvements, affordable housing units, parkland dedication, or fees for public services. 

Exactions are typically negotiated during the development approval process and are justified by the need to address the increased demand for public facilities and services resulting from new development. While exactions help ensure that growth pays for itself and benefits the community, they must comply with legal standards, such as the "nexus" and "rough proportionality" tests established by the U.S. Supreme Court in Nollan v. California Coastal Commission (1987) and Dolan v. City of Tigard (1994).