A city plans to attract new citizens with new housing and new faciliti

A city plans to attract new citizens with new housing and new facilities such as parks, recreation centers, and libraries. One component of the city's plan is to require that developers seeking permission to build this new housing provide these additional facilities at no cost to the city.

Which of the following, if true, would point to a possible flaw in the city's plan?

(A) Light, nonpolluting industries have located in the area, offering more jobs and better-paying jobs than do the more-established industries in the area.
(B) Other towns and cities nearby have yet to embark on any comparable plans to attract new citizens.
(C) Most developers see the extra expense of providing municipal facilities as simply one of the many costs of doing business.
(D) Developers would pass along their costs to the buyer, thereby raising the cost of housing units beyond the ability of likely purchasers to afford them.
(E) Studies show that purchasers of new houses, especially first-time buyers, rank recreational resources as an important factor in deciding to buy a particular house.

A city plans to attract new residents by expanding housing and providing community facilities. It will require developers building housing to provide these community facilities at no cost to the city. What information might suggest that the city’s plan is flawed?

Clearly the developer’s costs in providing such facilities will have to be regarded by the developer as part of the cost of building the housing which is to be sold. But if the cost is sufficiently high, the homes in question may have prices that are too high to attract new residents. This seems a flaw in the city’s plan, so the fourth choice is reasonable.

The first choice provides a good reason for thinking that new residents might be attracted to the city. This indicates no flaw in the city’s plan, and neither does the second choice, which suggests that the city will have less competition in attracting new residents.

The third choice suggests that the developers will not refuse to adopt the city’s conditions, so this indicates no flaw in the plan.

The fifth choice provides a reason for thinking that the city’s plan is a good one.