By @Anthony Tannehill
Numerous measures are working through the legislative process that unduly restrict development related fees assessed by local agencies. CSDA is actively engaged on these bills currently being heard in their first policy committees in the State Legislature.
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. CSDA has produced a two-page handout on the importance of development related fees that your district may download for its use.
Some of this year’s most significant development related fee measures facing special districts include:
AB 1820 (Schiavo) Housing development projects: applications: fees and exactions
- After significant amendments, this measure now requires local agencies to provide a preliminary fee and exaction estimate within 20 days after a development proponent submits a preliminary development application, up from 10 days in the prior version.
- This measure requires an itemized list and total sum amount of all fees and exactions that will apply to the project upon final approval of a housing development project within 20 days. Final approval means that the housing development project has received all necessary approvals to be eligible to apply for, and obtain, a building permit or permits. This is changed from the prior version which required the itemization of fees within 10 days of determination that the application was merely complete and not yet approved.
- This requirement applies to impact fees and the Quimby Act (parkland or fee-in-lieu), while recent amendments have removed these same requirements for connection and capacity charges and instead require only a fee schedule.
- This measure is largely in, or adjacent to, the same general statutes as SB 330 Projects
- CSDA is currently maintaining an Oppose position until further feedback and analysis on potential further amendments, if any are provided by CSDA’s members and partners (as of April 8, 2024).
- 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.
- This measure is scheduled to be heard the week of April 08 and no amendments have yet been shared.
- CSDA currently has an Oppose position on this measure (as of April 8, 2024).
SB 937 (Wiener) Development projects: permits and other entitlements: fees and charges
- This measure generally prohibits the collection of fees until the final inspection stage or certificate of occupancy phase of a development project and makes several restrictive amendments to the exceptions to collecting impact fees before the certificate of occupancy. Proposed amendments discussed by the author in the last committee hearing will reinstate some of the exceptions to this rule.
- Generally, 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. Proposed amendments reinstate some of these protections and safeguards.
- Extends land use entitlement timelines.
- This requirement applied to the Quimby Act (parkland or fee-in-lieu), impact fees and connection and capacity charges, until recent and proposed amendments removed the Quimby Act and connection and capacity charges, leaving just impact fees subject to the measure.
- CSDA is currently opposed to the measure, unless amended, as we evaluate forthcoming amendments and further feedback and analysis on potential further amendments, if any, are provided by CSDA’s members and partners (as of April 8, 2024).
SB 1210 (Skinner) New housing construction: electrical, gas, sewer, and water service connections: charges
- The original version of 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 one percent of the reported building permit value of that housing unit.
- As currently written, It further requires that the charges can be paid over a period of 10 years.
- This measure, as currently in print, applies to connection and capacity charges related to all utilities.
- Proposed amendments will likely remove publicly owned utilities from the above requirements.
- Proposed amendments may have some transparency requirements for publicly owned utilities.
- CSDA is awaiting forthcoming amendments and further feedback and analysis related thereto (as of April 8, 2024).
AB 3012 (Grayson) Development fees: fee schedule template: fee estimate tool
- This measure generally requires all cities and counties to host a development project fee estimator on their websites by 2031 or in the case of jurisdiction of less than 500,000 people by 2032.
- CSDA has not yet taken a position on this measure and is currently evaluating its impacts on Special Districts (as of April 8, 2024).
CSDA is working closely with the Legislature other local government advocates to oppose these restrictions in whole, or in part, and to educate 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 feedback, questions or comments, please contact CSDA Legislative Representative Anthony Tannehill at anthonyt@csda.net.
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