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Development-Related Fee Bills Restrict Infrastructure Funding Necessary to Serve New Housing

By Vanessa Gonzales posted 03-19-2024 08:56 AM

  

By @Anthony Tannehill

Several measures are currently working through the legislative process that involve placing restrictions on development related fees assessed by local agencies on new development. These measures will likely get their first policy hearings in April. 

Development impact fees fund the infrastructure necessary to serve new housing developments and represent critical funding for many special districts to meet the needs of new residents.

Some of the measures that are currently be discussed include:

AB 1820 (Schiavo)

  •  This bill would require local agencies to provide a preliminary fee and exaction estimate within 10 days after a development proponent that submits a preliminary application providing the information required request s it. 
  • Furthermore, this measure requires a public agency that determines an application for a housing development project is complete pursuant shall provide the development proponent with an itemized list and total sum amount of all fees and exactions that will apply to the project within 10 days.
  • This requirement applies to the Quimby Act (parkland or fee-in-lieu), impact fees and connection and capacity charges.

AB 2729 (Joe Patterson)

  • This bill would delete authorization for a local agency to require payment of fees or charges prior to the date of final inspection or issuance of the certificate of occupancy, whichever occurs first.
  • This measure applies to impact fees.

SB 937(Wiener)  

  • This measure prohibits the collection of fees at the final inspection stage and makes several restrictive amendments to the exceptions to collecting impact fees before the certificate of occupancy.
  • Locks in fees at what they would have been at the time a building permit is issued, despite not being collected until the certificate of occupancy.
  • Removes protections for local agencies in collecting and enforcing obligations to pay the development related fees.
  • Extends entitlement timelines.
  • This requirement applies to the Quimby Act (parkland or fee-in-lieu) , impact fees and connection and capacity charges

SB 1210 (Skinner)

  • This measure limits all connection, capacity, or other point of connection charges from a public utility or special district for electrical, gas, sewer, or water service to 1 percent of the reported building permit value of that housing unit.
  • It further requires that the charge can be paid over a period of 10 years.  
  • This measure applies to connection and capacity charges related to all utilities.  

CSDA is actively working closely with other local government advocates to oppose these measures in whole or in part and educate the legislators and their staff on the mitigation fee act, development impact fees, the Quimby Act, and connection and capacity charges and their vital role in building equitable and thriving communities.

If you have any questions or comments, please contact CSDA Legislative Representative Anthony Tannehill at anthonyt@csda.net

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