Applying a benefit principle, value capture strategies enable the public sector to harness the value created through infrastructure improvements and to use the funds to pay for such improvements. This article focuses on special assessments by which property owners located within a designated geographic area, or "special assessment district (SAD)," pay for special benefits accruing to their properties that are close to certain infrastructure improvement. The authors review the history of special assessments, the extent of use, and the mechanisms for funding public transportation especially transits. The authors then evaluate the applicability of special assessments in funding public transits on the basis of four criteria: efficiency, equity, sustainability, and feasibility. Finally, the authors discuss suitable conditions for special assessments and provide legal, administrative, and technical recommendations for their use in transportation finance.
Keywordstransportation finance, transit-oriented development, value capture, special assessments Public Works Management & Policy 16(4) U.S. Department of Transportation, 1984). Finally, an environment where zoning allows higher-density development and infrastructure such as pedestrian plazas would encourage developers to support special assessments, where the improvement paired with high-density zoning provides them opportunities to generate more revenue (Cervero, 1994;Gihring, 2001).