AB 602

State Land Use Enacted Legislation

Bill #	State	Year	Party	Topic
AB 602	CA	2021	D	Development Fees, Impact fees, Technical assistance, Written findings, burden and standard of proof

Provided by Furman

Summary

Reforms how local governments calculate, justify, and publish development impact fees. These fees are charged to developers to fund public infrastructure (like parks, sewers, and roads) necessitated by new construction.
As of January 1, 2022, a local agency that conducts an impact fee nexus study is required to follow specific standards and practices, including, but not limited to:

that prior to the adoption of a development fee, an impact fee nexus study be adopted
that the study identifies the existing level of service for each public facility, identifies the proposed new level of service, and includes an explanation of why the new level of service is necessary.
If the study is adopted after July 1, 2022, either calculate a fee levied or imposed on a housing development project proportionately to the square footage of the proposed units, or make specified findings explaining why square footage is not an appropriate metric to calculate the fees.

If adopted after July 1, 2022, fees for housing must be calculated based on square footage rather than per-unit, unless the agency can prove another metric is more appropriate. This helps ensure smaller units are not charged disproportionate fees.
Includes certain publishing and public comment requirements for agencies and localities.
The Department of Housing and Community Development (HCD) was required to create an impact fee nexus study template by 2024. This template includes tools to calculate whether a proposed fee level would make a housing project financially unfeasible.

Provided by lawmakers