PA - Focused Set

Question 1

What is an easement?

Answer 1

the right to use another’s land for a specific purpose, or to prevent the land’s owner from using it for a specific purpose
legal instrument and recorded

Question 2

What is a utility easement?

Answer 2

allows a utility company to enter the property to install and maintain utility lines above or below the ground
within the boundaries of the easement
no permanent structures can be erected within the easement without the utility company’s consent

Question 3

What is an access easement?

Answer 3

if a parcel of land is not served by a public road, an access easement may be granted that gives the landowner and the public the right to cross an adjacent property

Question 4

What is a support easement”

Answer 4

for the construction of common party walls between properties

Question 5

What is a joint use easement?

Answer 5

allow two or more property owners to share a common feature such as a driveway

Question 6

What is a scenic easement?

Answer 6

protect views and development in scenic areas

Question 7

What is a conservation easement?

Answer 7

A conservation easement is a voluntary, legal agreement that protects the natural resources of a parcel of land by restricting future land use and/or development on the property “in perpetuity” (permanently).

Question 8

What is a right of way?

Answer 8

Right-of-way - the legal right of one party or the public to traverse land belonging to another
Often refers to the public land used for streets and sidewalks

Question 9

What is a restrictive deed?

Answer 9

a deed to a property that contains a provision that restricts the use of the property by the buyer
- Legal and enforceable if they are reasonable and in the public interest
- Often used in residential subdivisions to maintain a desired uniformity of appearance

Question 10

What is an affirmative covenant?

Answer 10

requires a buyer to perform a specific duty in the future (ex. Construct and maintain a fence)

Question 11

What is a conditional covenant?

Answer 11

permits the title to the property to revert to the original owner if the restrictions prescribed in the deed are not followed

Question 12

What are the four levels of historic preservation (from most stringent to least)?

Answer 12

Preservation
Rehabilitation
Restoration
Reconstruction

Question 13

What does preservation entail?

Answer 13

Attempts to retain all historic fabric through conservation, maintenance, and repair

Question 14

What does rehabilitation entail?

Answer 14

Emphasizes the retention and repair of historic materials, but gives more latitude to replacement, typically because the property is more deteriorated before work begins

Question 15

What does restoration entail?

Answer 15

Focuses on the retention of materials from the most significant time in a property’s history, while permitting the removal of materials from other periods

Question 16

What does reconstruction entail?

Answer 16

The least historically accurate approach

Allows the opportunity to re-create a non-surviving site, landscape, building, structure, or object in new materials

Question 17

What does a special sales tax entail?

Answer 17

Any tax that is imposed for a specific purpose or by a single-purpose authority

Requires a majority vote of the people of the district

Question 18

What is a general obligation bond?

Answer 18

Issues by a city or state and backed by general tax revenue and the issuer’s credit

Typically used to finance the acquisition or construction of specific public capital facilities (schools, museums,
libraries), and to purchase real property

Jurisdiction issuing the bond has the authority to levy a property tax to repay the bond, usually over 10-30 years

Requires majority vote of the people

Question 19

What is a revenue bond?

Answer 19

Revenue Bonds or Rate-Supported Bonds

Similar to general obligation bonds

Revenue bonds are backed by the revenue that will come from customers who use the services that the bonds
funded

Question 20

What is a public enterprise revenue bond?

Answer 20

Public Enterprise Revenue Bonds

Bonds issued by cities or counties to finance facilities for revenue producing public enterprises

Bonds are paid off from revenues generated by the facilities through the charges they impose

Airports, parking garages, hospitals

Question 21

What is Tax Increment financing?

Answer 21

Tax-Increment Financing

Used by a city to pay for improvements that will encourage private development in an area generate increased
taxes due to increased property values

City creates a special district and makes public improvements within that district

Dose not require a vote by the people in the district

Question 22

What are development impact fees?

Answer 22

Development Impact Fees

Imposed on developers in order to pay for the improvements to off-site infrastructure (roads, utilities, fire and police
departments) that the new development makes necessary

Exactions - hookup fees for utility service

Controversial - where does the money go?

Question 22

What are subdivision exactions?

Answer 22

Similar to development fees in that they put a burden on the development, but subdivision exactions are not used to
fund construction

Requirements that developers either dedicate some land for public use or contribute cash for the purchase of land
and facilities by local governments

Question 23

What are special district assessments?

Answer 23

Used to fund public space improvements (parks and streetscapes)

Increases and area’s appeal, and therefore property values

A special tax district is established that encompasses the properties that will benefit from the proposed
improvements

Majority of property owners in the area must agree

Not intended to encourage private development

Question 24

What is a mortgage loan?

Answer 24

Used to purchase property

Borrower grants the lender a lien on the property until the loan is repaid

Most common way people purchase home

Question 25

What is a blanket loan?

Answer 25

Often used to fund the purchase of a large piece of real estate that the borrower intends to subdivide and resell as smaller parcels

Question 26

What is a bond?

Answer 26

A type of debt security issued by a government entity to raise money for a construction project

Issuer of the bond receives money from the buyer, and in exchange the issuer promises to repay the principal with
interest on a later date

Typically sold to individual investors and investment companies

Question 27

What is a bridge loan?

Answer 27

A short-term loan used to purchase property or finance a project quickly, before long-term financing can be arranged

Question 28

What is a construction loan?

Answer 28

Used to finance the building of a project and is in effect only for the duration of construction

Once construction is complete, the loan must be converted into a long-term, permanent loan

Question 29

What is a hard money loan?

Answer 29

A relatively short-term loan used when there is a distressed financial situation such as foreclosure, bankruptcy, or
nonpayment of a previous loan

Based on the quick-sale value (usually significantly less than market value) of an asset such as a parcel of land or
other real estate

High interest rates

Question 30

What is a mezzanine loan?

Answer 30

Secured by collateral in the stock of the development company rather than in the developed property

In the event of default, the lender can seize the assets of the borrower more quickly than with a standard mortgage
loan

Often used by developers for large projects

Question 31

What is a pro forma statement?

Answer 31

Statement or model of all the expected expenses (both initial and long term) of developing a project, compared to
the expected income and increase in value of the project

Created by the developer in order to determine whether a project is likely to be financially successful

Question 32

How many sf is one acre?

Answer 32

43,560 sf

Question 33

construction type I & II

Answer 33

noncombustible, allowing for bigger buildings but more restrictions on usage of materials

Question 34

construction type III

Answer 34

noncombustible exterior walls and interior building elements of any material allowed by code

Question 35

construction type IV

Answer 35

Heavy Timber, exterior walls are of noncombustible material and the interior building elements are of solid or laminated wood without concealed spaces

Question 36

construction type V

Answer 36

Type V construction is where the structural elements, exterior walls and interior walls are of any material allowed by code, combustible or noncombustible (shorter buildings)

Question 37

level 1 alteration

Answer 37

removing, replacing, or covering something with a new material, equipment, or fixture; the new material, equipment, or the fixture serves the same purpose as the previous one

Question 38

level 2 alteration

Answer 38

reconfiguring the space, adding or removing an element (ex. door) from space, extending, reconfiguring, or installing a new system