Private Transfer Fees are fees that are required to be paid each time a property is sold at closing. The transfer fee is attached to the property as a covenant that can run for a fixed period, often 20 or 100 years.
The Private Transfer Fees can be securitized and sold such that a developer can get needed financing up front for mandated infrastructure that benefits owners of the property for many years. The buyer of the property benefits because the property can be sold at a lower price since the first buyers into the development don’t have to pay for 100% of the infrastructure costs.
Private Transfer Fees, or reconveyance fees, have also been used as mitigation to pay into land trusts and even been placed on private homes to add to the household’s future income stream.
I posted more on Private Transfer Fees on Bloodhoundblog.
