TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Becky Craig, Assistant Chief Executive Officer and Jennifer Palmer, Director of Housing & Community Services
SUBJECT: Development Impact Fees Studies
RECOMMENDATION
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Receive presentation of Development Impact Fee Nexus Studies for Transportation and Affordable Housing and Commercial Linkage and provide direction. (No Fiscal Impact)
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BACKGROUND
A development impact fee is monetary exaction other than a tax or special assessment that is charged by a local governmental agency to an applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project. (Gov. Code ? 66000(b).) The legal requirements for enactment of development impact fee programs are set forth in Government Code ?? 66000-66025 (the "Mitigation Fee Act"), the bulk of which were adopted as 1987's AB 1600 and thus are commonly referred to as "AB 1600 requirements." A development impact fee is not a tax or special assessment; by its definition, a fee is voluntary and must be reasonably related to the cost of the service provided by the local agency. If a development impact fee does not relate to the impact created by development or exceeds the reasonable cost of providing the public service, then the fee may be declared a special tax and must then be subject to two-thirds voter approval. (Cal. Const., Art. XIII A, ? 4.)
In August 2024, the County hired a consultant to determine the nexus of development to certain impacts and calculate in-lieu fees for four programs: Affordable Housing, Transportation Mitigation, Woodland Conversion, and the water and sewer connection fees for LBRID and NBRID. The first three fees would apply to all development projects in the unincorporated area while the utility connection fees programs apply to limited services areas. The water and sewer connection fees study for LBRID an...
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