Two major bills on the topic of development impact fees were held
on suspense in the appropriations committees last week, while two
others continue to move forward.
CSAC opposed AB 3147 (Caballero), which
would have limited the circumstances when fees imposed on housing
projects could be increased during the development process.
The bill was held on the Assembly Appropriations Committee
suspense file. Although it included language providing exceptions
for fee schedules with cost-of-living adjustments, fees and
exactions needed to mitigate impacts identified pursuant to the
California Environmental Quality Act, and exactions related to
health and safety issues, the bill was still unworkably broad for
counties.
In the Senate, another fee-related bill was held on suspense.
SB 1296 (Glazer) would have required local
government reporting on development fees, as well as the creation
of a statewide local fee database within the Department of
Housing and Community Development (HCD).
SB 1202 (Stone), was recently amended.
Current law allows any person to request an audit of a mitigation
fee act program. Under SB 1202, if a local agency is not in
compliance with the Act’s reporting requirements, the local
agency must pay for the audit and may not require a deposit from
the individual. CSAC is interested in county feedback on this
bill, which is now pending referral in the Assembly.
CSAC is opposing SB 831 (Wieckowski), which,
among other provisions, would preclude the imposition of
development impact fees on accessory dwelling units (ADUs). While
the bill includes narrow exemptions for utility-related fees
and places a cap on school impact fees, local fees supporting
infrastructure such as roads, parks and other public facilities
could not be imposed. While many ADUs are small and likely to
have minimal impacts, many county ordinances allow large ADUs
that will put additional pressure on public infrastructure. The
bill passed the Senate Appropriations Committee and as of this
writing is pending on the Senate Floor.
Broader issues surrounding development impacts fees, including
how fees are set, when applicable fees can be changed for an
approved or proposed project that has yet to be constructed, and
broad transparency and reporting requirements, are all likely to
be part of a significant policy debate next year. As counties
recall, AB
879 (Grayson, 2017) requires HCD to complete a study
of the Mitigation Fee Act, with an eye towards reducing impact
fees. That report will be due to the Legislature in 2019.
