[chuckinca]

Nancy:

My guess is that it is a cashflow issue. If the developer paid the fees to the local agencies they would probably have to pay them prior to building the houses. In TV where they are building or have unsold a thousand or so houses at all times, it could mean that the developer would be out the fees which could be $20 Mil or more. They would always be out that money until TV was built and sold out.

The developer made a deal with the agencies that the agencies would accept payment by the buyers at a much later date instead of from the developer up front. I would imagine that the agencies didn't do that out of the kindness of their hearts and probably upped the fees to cover the late payments.

The deal saved the developer the $20 Mil or so that he would have had locked up by the agencies until the last homes were sold (maybe for a period of ten years or so - which means the developer can invest the $20 Mil and turn it into maybe $50 Mil in 10 years or so). Good business. The developer makes out, the agencies make out and the (insert appropriate adjective) buyers are happy to pay the higher costs.