Real Estate Development: Principles and

Process, 5th Ed
Miles, M.E, et al
CHAPTER 7
THE ROLE OF REGULATORY SECTOR

KELOMPOK 2:

Achmad Saifuddin (9116202301)

Jeffry Dwi (9116202303)
Ade Rochmanu (9116202316)
Novrizal Putra (9116202318)

PROGRAM MAGISTER MANAJEMEN TEKNOLOGI

BIDANG KEAHLIAN MANAJEMEN PROYEK
PROGRAM PASCASARJANA
INSTITUT TEKNOLOGI SEPULUH NOPEMBER
SURABAYA
2017
THE ALLOCATION OF POWER
These participants often conflicting positions in the development process between Private
Enterprise, Public Interest and Property Right
All projects require public sector approvals:
By right approvals : consistent with the rules and regulations no need
evaluate
Discretionary approvals: comply with the rules and regulations public
sector staff must evaluate first
Extended Discretionary approvals: higher profile project thatnot be consistent
with rules and regulations need extend period to obtain approval

PROPERTY RIGHT AND ENTITLEMENT

The rigthts to use and to develop property are commonly refered to as entitlements
Property right is not absolute freedom for land owner
Property ownership is a collection of rights to the economic use of land, and those rights is
limited.

LOCAL AND STATE MANDATES REGULATION

From a regulatory perspective, real estate development is local business.
Most state and local jurisdiction govern land use through of regulations, ranging from long
term regional plans to specific project-level plan.
General (Comprehensive) Plans

Land use

Safety Circulation

Technical
Studies

Recreation
Housing
and open

Resources

Spesific Plans and Planned Unit Development contain:

Project Description
Detailed Site-Spesific Discussion
Design Guidelines
 Implementation
Consistency

CONDITION APPROVAL

Beginning with the specific plan & continuing trough sub sequent test, judiction may add
conditions that developers must satisfy before a project can move forward.
They maybe the standard condition that are attact to every project & location, setting fort the
design standards unique to that development.

ZONING
The zoning ordinance is a local low that addreses the specific conditions under which
landmay be developed.

SUB DIVISION MAP

A subdivision is the partitioning of any unit of land for the purpose of sale, leasing or
financing.

INFRASTRUCTURE
Infrastruscture consists of roads, water,sewer,drainage,gas electric, comunication,and other
systems necessary to support the built environtment.
In certain situations, the developer may work eith local government to creat public finance
vehicles to provide infrastructure.

EXACTIONS

Exactions are financial or other condition imposed on the developer as a condition of a

project approval.
Most often they are two forms :
Scheduled Fee imposed by City/Country agencies, Shool
District,transportation District, and water District (provide area-wide
community,processing and inspection).
Mitigation exaction are Monetary amount or in kind contribution that are
applied toward offsetting projects direct impacts (exam; traffic
signal,replacement area that affected by the project etc. )
STATE ENVIRONMENTAL REGULATION

The specific plan & map required for the various government level of approval describe a
proposed project in term of its basic component. This studies include this following:
Land Use Analysis
Traffic
Impact from noise, air quality and green houses
Biology
Visual Impact
Hazard
Hydrology and water quality
Public services
Recreation
Resources
Utilities
Geology
Cultural Resources
Avoidance
On-site mitigation
Off-site mitigation
Fees

OTHER STATE AND LOCAL AGENCIES

A variety of other state or local agencies may be involved in the approval process:
Council of Government
Special Taxing District
Coastal special focused commissions

OTHER SITE-SPECIFIC DEVELOPMENT CONTROL MECHANISM

Development Agreements
Transferable Development Right
Form-based zoning
Transect zoning
Growth Boundaries
Ballot Box Planning
FEDERAL REGULATION
Federal land use regulation is focused on the environmental impacts of development, such as
in:
The Clean Water Act
The Endagered Species Act
The Clean Air Act
Superfun
Asbestos
American with Disabilities Act
PACKAGING THE ENTITLEMENTS
A typical project will involve a package of entitlements, and usually construction doesnt
begin until all of the entitlements are complete.
The Process
The Risk Profile
Dependence on others and mangement of the entlitement process
THE IMPORTANCE OF NEGOTATION
Many areas of the entitlement process have the look of technical analysis but in fact may be
highly subjective. All these issues are resolved through negotiation.
Summary: The relationship between private and public interest cannot be
underestimated.The success of entitlement process depends on the relationship between
public sector and private.The entitlement may add a great value and great loss in the
development process (very risky) because there are no certain things in the entitlement
process.