Transparency and evolution in the use of negotiated developer obligations within land readjustment in Spain

Public bodies often pursue alternative funding of public infrastructure by using developer obligations. These are contributions made in exchange of land-use regulation decisions. Non-negotiable obligations support on detailed legislation, but negotiable obligations much less and often have a local character. In Spain, negotiable obligations were introduced in the 1980s. As in other countries, in Spain, they increased initially as a response of low effectiveness of non-negotiable obligations, but they were not always transparent and with time became regulated. Differently than in other countries, Spain introduced in the 1990s a peculiar land readjustment regulation that stimulated competition and hence negotiated contributions.

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