66000. As used in this chapter, the following terms have the
following meanings:
(a) "Development project" means any project undertaken for the
purpose of development. "Development project" includes a project
involving the issuance of a permit for construction or
reconstruction, but not a permit to operate.
(b) "Fee" means a monetary exaction other than a tax or special
assessment, whether established for a broad class of projects by
legislation of general applicability or imposed on a specific project
on an ad hoc basis, that is charged by a local agency to the
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, but does not include
fees specified in Section 66477, fees for processing applications for
governmental regulatory actions or approvals, fees collected under
development agreements adopted pursuant to Article 2.5 (commencing
with Section 65864) of Chapter 4, or fees collected pursuant to
agreements with redevelopment agencies that provide for the
redevelopment of property in furtherance or for the benefit of a
redevelopment project for which a redevelopment plan has been adopted
pursuant to the Community Redevelopment Law (Part 1 (commencing with
Section 33000) of Division 24 of the Health and Safety Code).
(c) "Local agency" means a county, city, whether general law or
chartered, city and county, school district, special district,
authority, agency, any other municipal public corporation or
district, or other political subdivision of the state.
(d) "Public facilities" includes public improvements, public
services, and community amenities.
66000.5. (a) This chapter, Chapter 6 (commencing with Section
66010), Chapter 7 (commencing with Section 66012), Chapter 8
(commencing with Section 66016), and Chapter 9 (commencing with
Section 66020) shall be known and may be cited as the Mitigation Fee
Act.
(b) Any action brought in the superior court relating to the
Mitigation Fee Act may be subject to a mediation proceeding conducted
pursuant to Chapter 9.3 (commencing with Section 66030).
66001. (a) In any action establishing, increasing, or imposing a
fee as a condition of approval of a development project by a local
agency, the local agency shall do all of the following:
(1) Identify the purpose of the fee.
(2) Identify the use to which the fee is to be put. If the use is
financing public facilities, the facilities shall be identified. That
identification may, but need not, be made by reference to a capital
improvement plan as specified in Section 65403 or 66002, may be made
in applicable general or specific plan requirements, or may be made
in other public documents that identify the public facilities for
which the fee is charged.
(3) Determine how there is a reasonable relationship between the
fee's use and the type of development project on which the fee is
imposed.
(4) Determine how there is a reasonable relationship between the
need for the public facility and the type of development project on
which the fee is imposed.
(b) In any action imposing a fee as a condition of approval of a
development project by a local agency, the local agency shall
determine how there is a reasonable relationship between the amount
of the fee and the cost of the public facility or portion of the
public facility attributable to the development on which the fee is
imposed.
(c) Upon receipt of a fee subject to this section, the local
agency shall deposit, invest, account for, and expend the fees
pursuant to Section 66006.
(d) (1) For the fifth fiscal year following the first deposit into
the account or fund, and every five years thereafter, the local
agency shall make all of the following findings with respect to that
portion of the account or fund remaining unexpended, whether
committed or uncommitted:
(A) Identify the purpose to which the fee is to be put.
(B) Demonstrate a reasonable relationship between the fee and the
purpose for which it is charged.
(C) Identify all sources and amounts of funding anticipated to
complete financing in incomplete improvements identified in paragraph
(2) of subdivision (a).
(D) Designate the approximate dates on which the funding referred
to in subparagraph (C) is expected to be deposited into the
appropriate account or fund.
(2) When findings are required by this subdivision, they shall be
made in connection with the public information required by
subdivision (b) of Section 66006. The findings required by this
subdivision need only be made for moneys in possession of the local
agency, and need not be made with respect to letters of credit,
bonds, or other instruments taken to secure payment of the fee at a
future date. If the findings are not made as required by this
subdivision, the local agency shall refund the moneys in the account
or fund as provided in subdivision (e).
(e) Except as provided in subdivision (f), when sufficient funds
have been collected, as determined pursuant to subparagraph (F) of
paragraph (1) of subdivision (b) of Section 66006, to complete
financing on incomplete public improvements identified in paragraph
(2) of subdivision (a), and the public improvements remain
incomplete, the local agency shall identify, within 180 days of the
determination that sufficient funds have been collected, an
approximate date by which the construction of the public improvement
will be commenced, or shall refund to the then current record owner
or owners of the lots or units, as identified on the last equalized
assessment roll, of the development project or projects on a prorated
basis, the unexpended portion of the fee, and any interest accrued
thereon. By means consistent with the intent of this section, a local
agency may refund the unexpended revenues by direct payment, by
providing a temporary suspension of fees, or by any other reasonable
means. The determination by the governing body of the local agency of
the means by which those revenues are to be refunded is a
legislative act.
(f) If the administrative costs of refunding unexpended revenues
pursuant to subdivision (e) exceed the amount to be refunded, the
local agency, after a public hearing, notice of which has been
published pursuant to Section 6061 and posted in three prominent
places within the area of the development project, may determine that
the revenues shall be allocated for some other purpose for which
fees are collected subject to this chapter and which serves the
project on which the fee was originally imposed.
(g) A fee shall not include the costs attributable to existing
deficiencies in public facilities, but may include the costs
attributable to the increased demand for public facilities reasonably
related to the development project in order to (1) refurbish
existing facilities to maintain the existing level of service or (2)
achieve an adopted level of service that is consistent with the
general plan.
66002. (a) Any local agency which levies a fee subject to Section
66001 may adopt a capital improvement plan, which shall indicate the
approximate location, size, time of availability, and estimates of
cost for all facilities or improvements to be financed with the fees.
(b) The capital improvement plan shall be adopted by, and shall be
annually updated by, a resolution of the governing body of the local
agency adopted at a noticed public hearing. Notice of the hearing
shall be given pursuant to Section 65090. In addition, mailed notice
shall be given to any city or county which may be significantly
affected by the capital improvement plan. This notice shall be given
no later than the date the local agency notices the public hearing
pursuant to Section 65090. The information in the notice shall be not
less than the information contained in the notice of public hearing
and shall be given by first-class mail or personal delivery.
(c) "Facility" or "improvement," as used in this section, means
any of the following:
(1) Public buildings, including schools and related facilities;
provided that school facilities shall not be included if Senate Bill
97 of the 1987-88 Regular Session is enacted and becomes effective on
or before January 1, 1988.
(2) Facilities for the storage, treatment, and distribution of
nonagricultural water.
(3) Facilities for the collection, treatment, reclamation, and
disposal of sewage.
(4) Facilities for the collection and disposal of storm waters and
for flood control purposes.
(5) Facilities for the generation of electricity and the
distribution of gas and electricity.
(6) Transportation and transit facilities, including but not
limited to streets and supporting improvements, roads, overpasses,
bridges, harbors, ports, airports, and related facilities.
(7) Parks and recreation facilities.
(8) Any other capital project identified in the capital facilities
plan adopted pursuant to Section 66002.
66003. Sections 66001 and 66002 do not apply to a fee imposed
pursuant to a reimbursement agreement by and between a local agency
and a property owner or developer for that portion of the cost of a
public facility paid by the property owner or developer which exceeds
the need for the public facility attributable to and reasonably
related to the development. This chapter shall become operative on
January 1, 1989.
66004. The establishment or increase of any fee pursuant to this
chapter shall be subject to the requirements of Section 66018.
66005. (a) When a local agency imposes any fee or exaction as a
condition of approval of a proposed development, as defined by
Section 65927, or development project, those fees or exactions shall
not exceed the estimated reasonable cost of providing the service or
facility for which the fee or exaction is imposed.
(b) This section does not apply to fees or monetary exactions
expressly authorized to be imposed under Sections 66475.1 and 66477.
(c) It is the intent of the Legislature in adding this section to
codify existing constitutional and decisional law with respect to the
imposition of development fees and monetary exactions on
developments by local agencies. This section is declaratory of
existing law and shall not be construed or interpreted as creating
new law or as modifying or changing existing law.
66005.1. (a) When a local agency imposes a fee on a housing
development pursuant to Section 66001 for the purpose of mitigating
vehicular traffic impacts, if that housing development satisfies all
of the following characteristics, the fee, or the portion thereof
relating to vehicular traffic impacts, shall be set at a rate that
reflects a lower rate of automobile trip generation associated with
such housing developments in comparison with housing developments
without these characteristics, unless the local agency adopts
findings after a public hearing establishing that the housing
development, even with these characteristics, would not generate
fewer automobile trips than a housing development without those
characteristics:
(1) The housing development is located within one-half mile of a
transit station and there is direct access between the housing
development and the transit station along a barrier-free walkable
pathway not exceeding one-half mile in length.
(2) Convenience retail uses, including a store that sells food,
are located within one-half mile of the housing development.
(3) The housing development provides either the minimum number of
parking spaces required by the local ordinance, or no more than one
onsite parking space for zero to two bedroom units, and two onsite
parking spaces for three or more bedroom units, whichever is less.
(b) If a housing development does not satisfy the characteristics
in subdivision (a), the local agency may charge a fee that is
proportional to the estimated rate of automobile trip generation
associated with the housing development.
(c) As used in this section, "housing development" means a
development project with common ownership and financing consisting of
residential use or mixed use where not less than 50 percent of the
floorspace is for residential use.
(d) For the purposes of this section, "transit station" has the
meaning set forth in paragraph (4) of subdivision (b) of Section
65460.1. "Transit station" includes planned transit stations
otherwise meeting this definition whose construction is programmed to
be completed prior to the scheduled completion and occupancy of the
housing development.
(e) This section shall become operative on January 1, 2011.
66006. (a) If a local agency requires the payment of a fee
specified in subdivision (c) in connection with the approval of a
development project, the local agency receiving the fee shall deposit
it with the other fees for the improvement in a separate capital
facilities account or fund in a manner to avoid any commingling of
the fees with other revenues and funds of the local agency, except
for temporary investments, and expend those fees solely for the
purpose for which the fee was collected. Any interest income earned
by moneys in the capital facilities account or fund shall also be
deposited in that account or fund and shall be expended only for the
purpose for which the fee was originally collected.
(b) (1) For each separate account or fund established pursuant to
subdivision (a), the local agency shall, within 180 days after the
last day of each fiscal year, make available to the public the
following information for the fiscal year:
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
(C) The beginning and ending balance of the account or fund.
(D) The amount of the fees collected and the interest earned.
(E) An identification of each public improvement on which fees
were expended and the amount of the expenditures on each improvement,
including the total percentage of the cost of the public improvement
that was funded with fees.
(F) An identification of an approximate date by which the
construction of the public improvement will commence if the local
agency determines that sufficient funds have been collected to
complete financing on an incomplete public improvement, as identified
in paragraph (2) of subdivision (a) of Section 66001, and the public
improvement remains incomplete.
(G) A description of each interfund transfer or loan made from the
account or fund, including the public improvement on which the
transferred or loaned fees will be expended, and, in the case of an
interfund loan, the date on which the loan will be repaid, and the
rate of interest that the account or fund will receive on the loan.
(H) The amount of refunds made pursuant to subdivision (e) of
Section 66001 and any allocations pursuant to subdivision (f) of
Section 66001.
(2) The local agency shall review the information made available
to the public pursuant to paragraph (1) at the next regularly
scheduled public meeting not less than 15 days after this information
is made available to the public, as required by this subdivision.
Notice of the time and place of the meeting, including the address
where this information may be reviewed, shall be mailed, at least 15
days prior to the meeting, to any interested party who files a
written request with the local agency for mailed notice of the
meeting. Any written request for mailed notices shall be valid for
one year from the date on which it is filed unless a renewal request
is filed. Renewal requests for mailed notices shall be filed on or
before April 1 of each year. The legislative body may establish a
reasonable annual charge for sending notices based on the estimated
cost of providing the service.
(c) For purposes of this section, "fee" means any fee imposed to
provide for an improvement to be constructed to serve a development
project, or which is a fee for public improvements within the meaning
of subdivision (b) of Section 66000, and that is imposed by the
local agency as a condition of approving the development project.
(d) Any person may request an audit of any local agency fee or
charge that is subject to Section 66023, including fees or charges of
school districts, in accordance with that section.
(e) The Legislature finds and declares that untimely or improper
allocation of development fees hinders economic growth and is,
therefore, a matter of statewide interest and concern. It is,
therefore, the intent of the Legislature that this section shall
supersede all conflicting local laws and shall apply in charter
cities.
(f) At the time the local agency imposes a fee for public
improvements on a specific development project, it shall identify the
public improvement that the fee will be used to finance.
66006.5. (a) A city or county which imposes an assessment, fee, or
charge, other than a tax, for transportation purposes may, by
ordinance, prescribe conditions and procedures allowing real property
which is needed by the city or county for local transportation
purposes, or by the state for transportation projects which will not
receive any federal funds, to be donated by the obligor in
satisfaction or partial satisfaction of the assessment, fee, or
charge.
(b) To facilitate the implementation of subdivision (a), the
Department of Transportation shall do all of the following:
(1) Give priority to the refinement, modification, and enhancement
of procedures and policies dealing with right-of-way donations in
order to encourage and facilitate those donations.
(2) Reduce or simplify paperwork requirements involving
right-of-way procurement.
(3) Increase communication and education efforts as a means to
solicit and encourage voluntary right-of-way donations.
(4) Enhance communication and coordination with local public
entities through agreements of understanding that address state
acceptance of right-of-way donations.
66007. (a) Except as otherwise provided in subdivisions (b) and
(g), any local agency that imposes any fees or charges on a
residential development for the construction of public improvements
or facilities shall not require the payment of those fees or charges,
notwithstanding any other provision of law, until the date of the
final inspection, or the date the certificate of occupancy is issued,
whichever occurs first. However, utility service fees may be
collected at the time an application for utility service is received.
If the residential development contains more than one dwelling, the
local agency may determine whether the fees or charges shall be paid
on a pro rata basis for each dwelling when it receives its final
inspection or certificate of occupancy, whichever occurs first; on a
pro rata basis when a certain percentage of the dwellings have
received their final inspection or certificate of occupancy,
whichever occurs first; or on a lump-sum basis when the first
dwelling in the development receives its final inspection or
certificate of occupancy, whichever occurs first.
(b) (1) Notwithstanding subdivision (a), the local agency may
require the payment of those fees or charges at an earlier time if
(A) the local agency determines that the fees or charges will be
collected for public improvements or facilities for which an account
has been established and funds appropriated and for which the local
agency has adopted a proposed construction schedule or plan prior to
final inspection or issuance of the certificate of occupancy or (B)
the fees or charges are to reimburse the local agency for
expenditures previously made. "Appropriated," as used in this
subdivision, means authorization by the governing body of the local
agency for which the fee is collected to make expenditures and incur
obligations for specific purposes.
(2) (A) Paragraph (1) does not apply to units reserved for
occupancy by lower income households included in a residential
development proposed by a nonprofit housing developer in which at
least 49 percent of the total units are reserved for occupancy by
lower income households, as defined in Section 50079.5 of the Health
and Safety Code, at an affordable rent, as defined in Section 50053
of the Health and Safety Code. In addition to the contract that may
be required under subdivision (c), a city, county, or city and county
may require the posting of a performance bond or a letter of credit
from a federally insured, recognized depository institution to
guarantee payment of any fees or charges that are subject to this
paragraph. Fees and charges exempted from paragraph (1) under this
paragraph shall become immediately due and payable when the
residential development no longer meets the requirements of this
paragraph.
(B) The exception provided in subparagraph (A) does not apply to
fees and charges levied pursuant to Chapter 6 (commencing with
Section 17620) of Part 10.5 of Division 1 of Title 1 of the Education
Code.
(c) (1) If any fee or charge specified in subdivision (a) is not
fully paid prior to issuance of a building permit for construction of
any portion of the residential development encumbered thereby, the
local agency issuing the building permit may require the property
owner, or lessee if the lessee's interest appears of record, as a
condition of issuance of the building permit, to execute a contract
to pay the fee or charge, or applicable portion thereof, within the
time specified in subdivision (a). If the fee or charge is prorated
pursuant to subdivision (a), the obligation under the contract shall
be similarly prorated.
(2) The obligation to pay the fee or charge shall inure to the
benefit of, and be enforceable by, the local agency that imposed the
fee or charge, regardless of whether it is a party to the contract.
The contract shall contain a legal description of the property
affected, shall be recorded in the office of the county recorder of
the county and, from the date of recordation, shall constitute a lien
for the payment of the fee or charge, which shall be enforceable
against successors in interest to the property owner or lessee at the
time of issuance of the building permit. The contract shall be
recorded in the grantor-grantee index in the name of the public
agency issuing the building permit as grantee and in the name of the
property owner or lessee as grantor. The local agency shall record a
release of the obligation, containing a legal description of the
property, in the event the obligation is paid in full, or a partial
release in the event the fee or charge is prorated pursuant to
subdivision (a).
(3) The contract may require the property owner or lessee to
provide appropriate notification of the opening of any escrow for the
sale of the property for which the building permit was issued and to
provide in the escrow instructions that the fee or charge be paid to
the local agency imposing the same from the sale proceeds in escrow
prior to disbursing proceeds to the seller.
(d) This section applies only to fees collected by a local agency
to fund the construction of public improvements or facilities. It
does not apply to fees collected to cover the cost of code
enforcement or inspection services, or to other fees collected to pay
for the cost of enforcement of local ordinances or state law.
(e) "Final inspection" or "certificate of occupancy," as used in
this section, have the same meaning as described in Sections 305 and
307 of the Uniform Building Code, International Conference of
Building Officials, 1985 edition.
(f) Methods of complying with the requirement in subdivision (b)
that a proposed construction schedule or plan be adopted, include,
but are not limited to, (1) the adoption of the capital improvement
plan described in Section 66002, or (2) the submittal of a five-year
plan for construction and rehabilitation of school facilities
pursuant to subdivision (c) of Section 17017.5 of the Education Code.
(g) A local agency may defer the collection of one or more fees up
to the close of escrow. This subdivision shall not apply to fees and
charges levied pursuant to Chapter 6 (commencing with Section 17620)
of Part 10.5 of Division 1 of Title 1 of the Education Code.
66008. A local agency shall expend a fee for public improvements,
as accounted for pursuant to Section 66006, solely and exclusively
for the purpose or purposes, as identified in subdivision (f) of
Section 66006, for which the fee was collected. The fee shall not be
levied, collected, or imposed for general revenue purposes.
66000. As used in this chapter, the following terms have the
following meanings:
(a) "Development project" means any project undertaken for the
purpose of development. "Development project" includes a project
involving the issuance of a permit for construction or
reconstruction, but not a permit to operate.
(b) "Fee" means a monetary exaction other than a tax or special
assessment, whether established for a broad class of projects by
legislation of general applicability or imposed on a specific project
on an ad hoc basis, that is charged by a local agency to the
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, but does not include
fees specified in Section 66477, fees for processing applications for
governmental regulatory actions or approvals, fees collected under
development agreements adopted pursuant to Article 2.5 (commencing
with Section 65864) of Chapter 4, or fees collected pursuant to
agreements with redevelopment agencies that provide for the
redevelopment of property in furtherance or for the benefit of a
redevelopment project for which a redevelopment plan has been adopted
pursuant to the Community Redevelopment Law (Part 1 (commencing with
Section 33000) of Division 24 of the Health and Safety Code).
(c) "Local agency" means a county, city, whether general law or
chartered, city and county, school district, special district,
authority, agency, any other municipal public corporation or
district, or other political subdivision of the state.
(d) "Public facilities" includes public improvements, public
services, and community amenities.
66000.5. (a) This chapter, Chapter 6 (commencing with Section
66010), Chapter 7 (commencing with Section 66012), Chapter 8
(commencing with Section 66016), and Chapter 9 (commencing with
Section 66020) shall be known and may be cited as the Mitigation Fee
Act.
(b) Any action brought in the superior court relating to the
Mitigation Fee Act may be subject to a mediation proceeding conducted
pursuant to Chapter 9.3 (commencing with Section 66030).
66001. (a) In any action establishing, increasing, or imposing a
fee as a condition of approval of a development project by a local
agency, the local agency shall do all of the following:
(1) Identify the purpose of the fee.
(2) Identify the use to which the fee is to be put. If the use is
financing public facilities, the facilities shall be identified. That
identification may, but need not, be made by reference to a capital
improvement plan as specified in Section 65403 or 66002, may be made
in applicable general or specific plan requirements, or may be made
in other public documents that identify the public facilities for
which the fee is charged.
(3) Determine how there is a reasonable relationship between the
fee's use and the type of development project on which the fee is
imposed.
(4) Determine how there is a reasonable relationship between the
need for the public facility and the type of development project on
which the fee is imposed.
(b) In any action imposing a fee as a condition of approval of a
development project by a local agency, the local agency shall
determine how there is a reasonable relationship between the amount
of the fee and the cost of the public facility or portion of the
public facility attributable to the development on which the fee is
imposed.
(c) Upon receipt of a fee subject to this section, the local
agency shall deposit, invest, account for, and expend the fees
pursuant to Section 66006.
(d) (1) For the fifth fiscal year following the first deposit into
the account or fund, and every five years thereafter, the local
agency shall make all of the following findings with respect to that
portion of the account or fund remaining unexpended, whether
committed or uncommitted:
(A) Identify the purpose to which the fee is to be put.
(B) Demonstrate a reasonable relationship between the fee and the
purpose for which it is charged.
(C) Identify all sources and amounts of funding anticipated to
complete financing in incomplete improvements identified in paragraph
(2) of subdivision (a).
(D) Designate the approximate dates on which the funding referred
to in subparagraph (C) is expected to be deposited into the
appropriate account or fund.
(2) When findings are required by this subdivision, they shall be
made in connection with the public information required by
subdivision (b) of Section 66006. The findings required by this
subdivision need only be made for moneys in possession of the local
agency, and need not be made with respect to letters of credit,
bonds, or other instruments taken to secure payment of the fee at a
future date. If the findings are not made as required by this
subdivision, the local agency shall refund the moneys in the account
or fund as provided in subdivision (e).
(e) Except as provided in subdivision (f), when sufficient funds
have been collected, as determined pursuant to subparagraph (F) of
paragraph (1) of subdivision (b) of Section 66006, to complete
financing on incomplete public improvements identified in paragraph
(2) of subdivision (a), and the public improvements remain
incomplete, the local agency shall identify, within 180 days of the
determination that sufficient funds have been collected, an
approximate date by which the construction of the public improvement
will be commenced, or shall refund to the then current record owner
or owners of the lots or units, as identified on the last equalized
assessment roll, of the development project or projects on a prorated
basis, the unexpended portion of the fee, and any interest accrued
thereon. By means consistent with the intent of this section, a local
agency may refund the unexpended revenues by direct payment, by
providing a temporary suspension of fees, or by any other reasonable
means. The determination by the governing body of the local agency of
the means by which those revenues are to be refunded is a
legislative act.
(f) If the administrative costs of refunding unexpended revenues
pursuant to subdivision (e) exceed the amount to be refunded, the
local agency, after a public hearing, notice of which has been
published pursuant to Section 6061 and posted in three prominent
places within the area of the development project, may determine that
the revenues shall be allocated for some other purpose for which
fees are collected subject to this chapter and which serves the
project on which the fee was originally imposed.
(g) A fee shall not include the costs attributable to existing
deficiencies in public facilities, but may include the costs
attributable to the increased demand for public facilities reasonably
related to the development project in order to (1) refurbish
existing facilities to maintain the existing level of service or (2)
achieve an adopted level of service that is consistent with the
general plan.
66002. (a) Any local agency which levies a fee subject to Section
66001 may adopt a capital improvement plan, which shall indicate the
approximate location, size, time of availability, and estimates of
cost for all facilities or improvements to be financed with the fees.
(b) The capital improvement plan shall be adopted by, and shall be
annually updated by, a resolution of the governing body of the local
agency adopted at a noticed public hearing. Notice of the hearing
shall be given pursuant to Section 65090. In addition, mailed notice
shall be given to any city or county which may be significantly
affected by the capital improvement plan. This notice shall be given
no later than the date the local agency notices the public hearing
pursuant to Section 65090. The information in the notice shall be not
less than the information contained in the notice of public hearing
and shall be given by first-class mail or personal delivery.
(c) "Facility" or "improvement," as used in this section, means
any of the following:
(1) Public buildings, including schools and related facilities;
provided that school facilities shall not be included if Senate Bill
97 of the 1987-88 Regular Session is enacted and becomes effective on
or before January 1, 1988.
(2) Facilities for the storage, treatment, and distribution of
nonagricultural water.
(3) Facilities for the collection, treatment, reclamation, and
disposal of sewage.
(4) Facilities for the collection and disposal of storm waters and
for flood control purposes.
(5) Facilities for the generation of electricity and the
distribution of gas and electricity.
(6) Transportation and transit facilities, including but not
limited to streets and supporting improvements, roads, overpasses,
bridges, harbors, ports, airports, and related facilities.
(7) Parks and recreation facilities.
(8) Any other capital project identified in the capital facilities
plan adopted pursuant to Section 66002.
66003. Sections 66001 and 66002 do not apply to a fee imposed
pursuant to a reimbursement agreement by and between a local agency
and a property owner or developer for that portion of the cost of a
public facility paid by the property owner or developer which exceeds
the need for the public facility attributable to and reasonably
related to the development. This chapter shall become operative on
January 1, 1989.
66004. The establishment or increase of any fee pursuant to this
chapter shall be subject to the requirements of Section 66018.
66005. (a) When a local agency imposes any fee or exaction as a
condition of approval of a proposed development, as defined by
Section 65927, or development project, those fees or exactions shall
not exceed the estimated reasonable cost of providing the service or
facility for which the fee or exaction is imposed.
(b) This section does not apply to fees or monetary exactions
expressly authorized to be imposed under Sections 66475.1 and 66477.
(c) It is the intent of the Legislature in adding this section to
codify existing constitutional and decisional law with respect to the
imposition of development fees and monetary exactions on
developments by local agencies. This section is declaratory of
existing law and shall not be construed or interpreted as creating
new law or as modifying or changing existing law.
66005.1. (a) When a local agency imposes a fee on a housing
development pursuant to Section 66001 for the purpose of mitigating
vehicular traffic impacts, if that housing development satisfies all
of the following characteristics, the fee, or the portion thereof
relating to vehicular traffic impacts, shall be set at a rate that
reflects a lower rate of automobile trip generation associated with
such housing developments in comparison with housing developments
without these characteristics, unless the local agency adopts
findings after a public hearing establishing that the housing
development, even with these characteristics, would not generate
fewer automobile trips than a housing development without those
characteristics:
(1) The housing development is located within one-half mile of a
transit station and there is direct access between the housing
development and the transit station along a barrier-free walkable
pathway not exceeding one-half mile in length.
(2) Convenience retail uses, including a store that sells food,
are located within one-half mile of the housing development.
(3) The housing development provides either the minimum number of
parking spaces required by the local ordinance, or no more than one
onsite parking space for zero to two bedroom units, and two onsite
parking spaces for three or more bedroom units, whichever is less.
(b) If a housing development does not satisfy the characteristics
in subdivision (a), the local agency may charge a fee that is
proportional to the estimated rate of automobile trip generation
associated with the housing development.
(c) As used in this section, "housing development" means a
development project with common ownership and financing consisting of
residential use or mixed use where not less than 50 percent of the
floorspace is for residential use.
(d) For the purposes of this section, "transit station" has the
meaning set forth in paragraph (4) of subdivision (b) of Section
65460.1. "Transit station" includes planned transit stations
otherwise meeting this definition whose construction is programmed to
be completed prior to the scheduled completion and occupancy of the
housing development.
(e) This section shall become operative on January 1, 2011.
66006. (a) If a local agency requires the payment of a fee
specified in subdivision (c) in connection with the approval of a
development project, the local agency receiving the fee shall deposit
it with the other fees for the improvement in a separate capital
facilities account or fund in a manner to avoid any commingling of
the fees with other revenues and funds of the local agency, except
for temporary investments, and expend those fees solely for the
purpose for which the fee was collected. Any interest income earned
by moneys in the capital facilities account or fund shall also be
deposited in that account or fund and shall be expended only for the
purpose for which the fee was originally collected.
(b) (1) For each separate account or fund established pursuant to
subdivision (a), the local agency shall, within 180 days after the
last day of each fiscal year, make available to the public the
following information for the fiscal year:
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
(C) The beginning and ending balance of the account or fund.
(D) The amount of the fees collected and the interest earned.
(E) An identification of each public improvement on which fees
were expended and the amount of the expenditures on each improvement,
including the total percentage of the cost of the public improvement
that was funded with fees.
(F) An identification of an approximate date by which the
construction of the public improvement will commence if the local
agency determines that sufficient funds have been collected to
complete financing on an incomplete public improvement, as identified
in paragraph (2) of subdivision (a) of Section 66001, and the public
improvement remains incomplete.
(G) A description of each interfund transfer or loan made from the
account or fund, including the public improvement on which the
transferred or loaned fees will be expended, and, in the case of an
interfund loan, the date on which the loan will be repaid, and the
rate of interest that the account or fund will receive on the loan.
(H) The amount of refunds made pursuant to subdivision (e) of
Section 66001 and any allocations pursuant to subdivision (f) of
Section 66001.
(2) The local agency shall review the information made available
to the public pursuant to paragraph (1) at the next regularly
scheduled public meeting not less than 15 days after this information
is made available to the public, as required by this subdivision.
Notice of the time and place of the meeting, including the address
where this information may be reviewed, shall be mailed, at least 15
days prior to the meeting, to any interested party who files a
written request with the local agency for mailed notice of the
meeting. Any written request for mailed notices shall be valid for
one year from the date on which it is filed unless a renewal request
is filed. Renewal requests for mailed notices shall be filed on or
before April 1 of each year. The legislative body may establish a
reasonable annual charge for sending notices based on the estimated
cost of providing the service.
(c) For purposes of this section, "fee" means any fee imposed to
provide for an improvement to be constructed to serve a development
project, or which is a fee for public improvements within the meaning
of subdivision (b) of Section 66000, and that is imposed by the
local agency as a condition of approving the development project.
(d) Any person may request an audit of any local agency fee or
charge that is subject to Section 66023, including fees or charges of
school districts, in accordance with that section.
(e) The Legislature finds and declares that untimely or improper
allocation of development fees hinders economic growth and is,
therefore, a matter of statewide interest and concern. It is,
therefore, the intent of the Legislature that this section shall
supersede all conflicting local laws and shall apply in charter
cities.
(f) At the time the local agency imposes a fee for public
improvements on a specific development project, it shall identify the
public improvement that the fee will be used to finance.
66006.5. (a) A city or county which imposes an assessment, fee, or
charge, other than a tax, for transportation purposes may, by
ordinance, prescribe conditions and procedures allowing real property
which is needed by the city or county for local transportation
purposes, or by the state for transportation projects which will not
receive any federal funds, to be donated by the obligor in
satisfaction or partial satisfaction of the assessment, fee, or
charge.
(b) To facilitate the implementation of subdivision (a), the
Department of Transportation shall do all of the following:
(1) Give priority to the refinement, modification, and enhancement
of procedures and policies dealing with right-of-way donations in
order to encourage and facilitate those donations.
(2) Reduce or simplify paperwork requirements involving
right-of-way procurement.
(3) Increase communication and education efforts as a means to
solicit and encourage voluntary right-of-way donations.
(4) Enhance communication and coordination with local public
entities through agreements of understanding that address state
acceptance of right-of-way donations.
66007. (a) Except as otherwise provided in subdivisions (b) and
(g), any local agency that imposes any fees or charges on a
residential development for the construction of public improvements
or facilities shall not require the payment of those fees or charges,
notwithstanding any other provision of law, until the date of the
final inspection, or the date the certificate of occupancy is issued,
whichever occurs first. However, utility service fees may be
collected at the time an application for utility service is received.
If the residential development contains more than one dwelling, the
local agency may determine whether the fees or charges shall be paid
on a pro rata basis for each dwelling when it receives its final
inspection or certificate of occupancy, whichever occurs first; on a
pro rata basis when a certain percentage of the dwellings have
received their final inspection or certificate of occupancy,
whichever occurs first; or on a lump-sum basis when the first
dwelling in the development receives its final inspection or
certificate of occupancy, whichever occurs first.
(b) (1) Notwithstanding subdivision (a), the local agency may
require the payment of those fees or charges at an earlier time if
(A) the local agency determines that the fees or charges will be
collected for public improvements or facilities for which an account
has been established and funds appropriated and for which the local
agency has adopted a proposed construction schedule or plan prior to
final inspection or issuance of the certificate of occupancy or (B)
the fees or charges are to reimburse the local agency for
expenditures previously made. "Appropriated," as used in this
subdivision, means authorization by the governing body of the local
agency for which the fee is collected to make expenditures and incur
obligations for specific purposes.
(2) (A) Paragraph (1) does not apply to units reserved for
occupancy by lower income households included in a residential
development proposed by a nonprofit housing developer in which at
least 49 percent of the total units are reserved for occupancy by
lower income households, as defined in Section 50079.5 of the Health
and Safety Code, at an affordable rent, as defined in Section 50053
of the Health and Safety Code. In addition to the contract that may
be required under subdivision (c), a city, county, or city and county
may require the posting of a performance bond or a letter of credit
from a federally insured, recognized depository institution to
guarantee payment of any fees or charges that are subject to this
paragraph. Fees and charges exempted from paragraph (1) under this
paragraph shall become immediately due and payable when the
residential development no longer meets the requirements of this
paragraph.
(B) The exception provided in subparagraph (A) does not apply to
fees and charges levied pursuant to Chapter 6 (commencing with
Section 17620) of Part 10.5 of Division 1 of Title 1 of the Education
Code.
(c) (1) If any fee or charge specified in subdivision (a) is not
fully paid prior to issuance of a building permit for construction of
any portion of the residential development encumbered thereby, the
local agency issuing the building permit may require the property
owner, or lessee if the lessee's interest appears of record, as a
condition of issuance of the building permit, to execute a contract
to pay the fee or charge, or applicable portion thereof, within the
time specified in subdivision (a). If the fee or charge is prorated
pursuant to subdivision (a), the obligation under the contract shall
be similarly prorated.
(2) The obligation to pay the fee or charge shall inure to the
benefit of, and be enforceable by, the local agency that imposed the
fee or charge, regardless of whether it is a party to the contract.
The contract shall contain a legal description of the property
affected, shall be recorded in the office of the county recorder of
the county and, from the date of recordation, shall constitute a lien
for the payment of the fee or charge, which shall be enforceable
against successors in interest to the property owner or lessee at the
time of issuance of the building permit. The contract shall be
recorded in the grantor-grantee index in the name of the public
agency issuing the building permit as grantee and in the name of the
property owner or lessee as grantor. The local agency shall record a
release of the obligation, containing a legal description of the
property, in the event the obligation is paid in full, or a partial
release in the event the fee or charge is prorated pursuant to
subdivision (a).
(3) The contract may require the property owner or lessee to
provide appropriate notification of the opening of any escrow for the
sale of the property for which the building permit was issued and to
provide in the escrow instructions that the fee or charge be paid to
the local agency imposing the same from the sale proceeds in escrow
prior to disbursing proceeds to the seller.
(d) This section applies only to fees collected by a local agency
to fund the construction of public improvements or facilities. It
does not apply to fees collected to cover the cost of code
enforcement or inspection services, or to other fees collected to pay
for the cost of enforcement of local ordinances or state law.
(e) "Final inspection" or "certificate of occupancy," as used in
this section, have the same meaning as described in Sections 305 and
307 of the Uniform Building Code, International Conference of
Building Officials, 1985 edition.
(f) Methods of complying with the requirement in subdivision (b)
that a proposed construction schedule or plan be adopted, include,
but are not limited to, (1) the adoption of the capital improvement
plan described in Section 66002, or (2) the submittal of a five-year
plan for construction and rehabilitation of school facilities
pursuant to subdivision (c) of Section 17017.5 of the Education Code.
(g) A local agency may defer the collection of one or more fees up
to the close of escrow. This subdivision shall not apply to fees and
charges levied pursuant to Chapter 6 (commencing with Section 17620)
of Part 10.5 of Division 1 of Title 1 of the Education Code.
66008. A local agency shall expend a fee for public improvements,
as accounted for pursuant to Section 66006, solely and exclusively
for the purpose or purposes, as identified in subdivision (f) of
Section 66006, for which the fee was collected. The fee shall not be
levied, collected, or imposed for general revenue purposes.
66000. As used in this chapter, the following terms have the
following meanings:
(a) "Development project" means any project undertaken for the
purpose of development. "Development project" includes a project
involving the issuance of a permit for construction or
reconstruction, but not a permit to operate.
(b) "Fee" means a monetary exaction other than a tax or special
assessment, whether established for a broad class of projects by
legislation of general applicability or imposed on a specific project
on an ad hoc basis, that is charged by a local agency to the
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, but does not include
fees specified in Section 66477, fees for processing applications for
governmental regulatory actions or approvals, fees collected under
development agreements adopted pursuant to Article 2.5 (commencing
with Section 65864) of Chapter 4, or fees collected pursuant to
agreements with redevelopment agencies that provide for the
redevelopment of property in furtherance or for the benefit of a
redevelopment project for which a redevelopment plan has been adopted
pursuant to the Community Redevelopment Law (Part 1 (commencing with
Section 33000) of Division 24 of the Health and Safety Code).
(c) "Local agency" means a county, city, whether general law or
chartered, city and county, school district, special district,
authority, agency, any other municipal public corporation or
district, or other political subdivision of the state.
(d) "Public facilities" includes public improvements, public
services, and community amenities.
66000.5. (a) This chapter, Chapter 6 (commencing with Section
66010), Chapter 7 (commencing with Section 66012), Chapter 8
(commencing with Section 66016), and Chapter 9 (commencing with
Section 66020) shall be known and may be cited as the Mitigation Fee
Act.
(b) Any action brought in the superior court relating to the
Mitigation Fee Act may be subject to a mediation proceeding conducted
pursuant to Chapter 9.3 (commencing with Section 66030).
66001. (a) In any action establishing, increasing, or imposing a
fee as a condition of approval of a development project by a local
agency, the local agency shall do all of the following:
(1) Identify the purpose of the fee.
(2) Identify the use to which the fee is to be put. If the use is
financing public facilities, the facilities shall be identified. That
identification may, but need not, be made by reference to a capital
improvement plan as specified in Section 65403 or 66002, may be made
in applicable general or specific plan requirements, or may be made
in other public documents that identify the public facilities for
which the fee is charged.
(3) Determine how there is a reasonable relationship between the
fee's use and the type of development project on which the fee is
imposed.
(4) Determine how there is a reasonable relationship between the
need for the public facility and the type of development project on
which the fee is imposed.
(b) In any action imposing a fee as a condition of approval of a
development project by a local agency, the local agency shall
determine how there is a reasonable relationship between the amount
of the fee and the cost of the public facility or portion of the
public facility attributable to the development on which the fee is
imposed.
(c) Upon receipt of a fee subject to this section, the local
agency shall deposit, invest, account for, and expend the fees
pursuant to Section 66006.
(d) (1) For the fifth fiscal year following the first deposit into
the account or fund, and every five years thereafter, the local
agency shall make all of the following findings with respect to that
portion of the account or fund remaining unexpended, whether
committed or uncommitted:
(A) Identify the purpose to which the fee is to be put.
(B) Demonstrate a reasonable relationship between the fee and the
purpose for which it is charged.
(C) Identify all sources and amounts of funding anticipated to
complete financing in incomplete improvements identified in paragraph
(2) of subdivision (a).
(D) Designate the approximate dates on which the funding referred
to in subparagraph (C) is expected to be deposited into the
appropriate account or fund.
(2) When findings are required by this subdivision, they shall be
made in connection with the public information required by
subdivision (b) of Section 66006. The findings required by this
subdivision need only be made for moneys in possession of the local
agency, and need not be made with respect to letters of credit,
bonds, or other instruments taken to secure payment of the fee at a
future date. If the findings are not made as required by this
subdivision, the local agency shall refund the moneys in the account
or fund as provided in subdivision (e).
(e) Except as provided in subdivision (f), when sufficient funds
have been collected, as determined pursuant to subparagraph (F) of
paragraph (1) of subdivision (b) of Section 66006, to complete
financing on incomplete public improvements identified in paragraph
(2) of subdivision (a), and the public improvements remain
incomplete, the local agency shall identify, within 180 days of the
determination that sufficient funds have been collected, an
approximate date by which the construction of the public improvement
will be commenced, or shall refund to the then current record owner
or owners of the lots or units, as identified on the last equalized
assessment roll, of the development project or projects on a prorated
basis, the unexpended portion of the fee, and any interest accrued
thereon. By means consistent with the intent of this section, a local
agency may refund the unexpended revenues by direct payment, by
providing a temporary suspension of fees, or by any other reasonable
means. The determination by the governing body of the local agency of
the means by which those revenues are to be refunded is a
legislative act.
(f) If the administrative costs of refunding unexpended revenues
pursuant to subdivision (e) exceed the amount to be refunded, the
local agency, after a public hearing, notice of which has been
published pursuant to Section 6061 and posted in three prominent
places within the area of the development project, may determine that
the revenues shall be allocated for some other purpose for which
fees are collected subject to this chapter and which serves the
project on which the fee was originally imposed.
(g) A fee shall not include the costs attributable to existing
deficiencies in public facilities, but may include the costs
attributable to the increased demand for public facilities reasonably
related to the development project in order to (1) refurbish
existing facilities to maintain the existing level of service or (2)
achieve an adopted level of service that is consistent with the
general plan.
66002. (a) Any local agency which levies a fee subject to Section
66001 may adopt a capital improvement plan, which shall indicate the
approximate location, size, time of availability, and estimates of
cost for all facilities or improvements to be financed with the fees.
(b) The capital improvement plan shall be adopted by, and shall be
annually updated by, a resolution of the governing body of the local
agency adopted at a noticed public hearing. Notice of the hearing
shall be given pursuant to Section 65090. In addition, mailed notice
shall be given to any city or county which may be significantly
affected by the capital improvement plan. This notice shall be given
no later than the date the local agency notices the public hearing
pursuant to Section 65090. The information in the notice shall be not
less than the information contained in the notice of public hearing
and shall be given by first-class mail or personal delivery.
(c) "Facility" or "improvement," as used in this section, means
any of the following:
(1) Public buildings, including schools and related facilities;
provided that school facilities shall not be included if Senate Bill
97 of the 1987-88 Regular Session is enacted and becomes effective on
or before January 1, 1988.
(2) Facilities for the storage, treatment, and distribution of
nonagricultural water.
(3) Facilities for the collection, treatment, reclamation, and
disposal of sewage.
(4) Facilities for the collection and disposal of storm waters and
for flood control purposes.
(5) Facilities for the generation of electricity and the
distribution of gas and electricity.
(6) Transportation and transit facilities, including but not
limited to streets and supporting improvements, roads, overpasses,
bridges, harbors, ports, airports, and related facilities.
(7) Parks and recreation facilities.
(8) Any other capital project identified in the capital facilities
plan adopted pursuant to Section 66002.
66003. Sections 66001 and 66002 do not apply to a fee imposed
pursuant to a reimbursement agreement by and between a local agency
and a property owner or developer for that portion of the cost of a
public facility paid by the property owner or developer which exceeds
the need for the public facility attributable to and reasonably
related to the development. This chapter shall become operative on
January 1, 1989.
66004. The establishment or increase of any fee pursuant to this
chapter shall be subject to the requirements of Section 66018.
66005. (a) When a local agency imposes any fee or exaction as a
condition of approval of a proposed development, as defined by
Section 65927, or development project, those fees or exactions shall
not exceed the estimated reasonable cost of providing the service or
facility for which the fee or exaction is imposed.
(b) This section does not apply to fees or monetary exactions
expressly authorized to be imposed under Sections 66475.1 and 66477.
(c) It is the intent of the Legislature in adding this section to
codify existing constitutional and decisional law with respect to the
imposition of development fees and monetary exactions on
developments by local agencies. This section is declaratory of
existing law and shall not be construed or interpreted as creating
new law or as modifying or changing existing law.
66005.1. (a) When a local agency imposes a fee on a housing
development pursuant to Section 66001 for the purpose of mitigating
vehicular traffic impacts, if that housing development satisfies all
of the following characteristics, the fee, or the portion thereof
relating to vehicular traffic impacts, shall be set at a rate that
reflects a lower rate of automobile trip generation associated with
such housing developments in comparison with housing developments
without these characteristics, unless the local agency adopts
findings after a public hearing establishing that the housing
development, even with these characteristics, would not generate
fewer automobile trips than a housing development without those
characteristics:
(1) The housing development is located within one-half mile of a
transit station and there is direct access between the housing
development and the transit station along a barrier-free walkable
pathway not exceeding one-half mile in length.
(2) Convenience retail uses, including a store that sells food,
are located within one-half mile of the housing development.
(3) The housing development provides either the minimum number of
parking spaces required by the local ordinance, or no more than one
onsite parking space for zero to two bedroom units, and two onsite
parking spaces for three or more bedroom units, whichever is less.
(b) If a housing development does not satisfy the characteristics
in subdivision (a), the local agency may charge a fee that is
proportional to the estimated rate of automobile trip generation
associated with the housing development.
(c) As used in this section, "housing development" means a
development project with common ownership and financing consisting of
residential use or mixed use where not less than 50 percent of the
floorspace is for residential use.
(d) For the purposes of this section, "transit station" has the
meaning set forth in paragraph (4) of subdivision (b) of Section
65460.1. "Transit station" includes planned transit stations
otherwise meeting this definition whose construction is programmed to
be completed prior to the scheduled completion and occupancy of the
housing development.
(e) This section shall become operative on January 1, 2011.
66006. (a) If a local agency requires the payment of a fee
specified in subdivision (c) in connection with the approval of a
development project, the local agency receiving the fee shall deposit
it with the other fees for the improvement in a separate capital
facilities account or fund in a manner to avoid any commingling of
the fees with other revenues and funds of the local agency, except
for temporary investments, and expend those fees solely for the
purpose for which the fee was collected. Any interest income earned
by moneys in the capital facilities account or fund shall also be
deposited in that account or fund and shall be expended only for the
purpose for which the fee was originally collected.
(b) (1) For each separate account or fund established pursuant to
subdivision (a), the local agency shall, within 180 days after the
last day of each fiscal year, make available to the public the
following information for the fiscal year:
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
(C) The beginning and ending balance of the account or fund.
(D) The amount of the fees collected and the interest earned.
(E) An identification of each public improvement on which fees
were expended and the amount of the expenditures on each improvement,
including the total percentage of the cost of the public improvement
that was funded with fees.
(F) An identification of an approximate date by which the
construction of the public improvement will commence if the local
agency determines that sufficient funds have been collected to
complete financing on an incomplete public improvement, as identified
in paragraph (2) of subdivision (a) of Section 66001, and the public
improvement remains incomplete.
(G) A description of each interfund transfer or loan made from the
account or fund, including the public improvement on which the
transferred or loaned fees will be expended, and, in the case of an
interfund loan, the date on which the loan will be repaid, and the
rate of interest that the account or fund will receive on the loan.
(H) The amount of refunds made pursuant to subdivision (e) of
Section 66001 and any allocations pursuant to subdivision (f) of
Section 66001.
(2) The local agency shall review the information made available
to the public pursuant to paragraph (1) at the next regularly
scheduled public meeting not less than 15 days after this information
is made available to the public, as required by this subdivision.
Notice of the time and place of the meeting, including the address
where this information may be reviewed, shall be mailed, at least 15
days prior to the meeting, to any interested party who files a
written request with the local agency for mailed notice of the
meeting. Any written request for mailed notices shall be valid for
one year from the date on which it is filed unless a renewal request
is filed. Renewal requests for mailed notices shall be filed on or
before April 1 of each year. The legislative body may establish a
reasonable annual charge for sending notices based on the estimated
cost of providing the service.
(c) For purposes of this section, "fee" means any fee imposed to
provide for an improvement to be constructed to serve a development
project, or which is a fee for public improvements within the meaning
of subdivision (b) of Section 66000, and that is imposed by the
local agency as a condition of approving the development project.
(d) Any person may request an audit of any local agency fee or
charge that is subject to Section 66023, including fees or charges of
school districts, in accordance with that section.
(e) The Legislature finds and declares that untimely or improper
allocation of development fees hinders economic growth and is,
therefore, a matter of statewide interest and concern. It is,
therefore, the intent of the Legislature that this section shall
supersede all conflicting local laws and shall apply in charter
cities.
(f) At the time the local agency imposes a fee for public
improvements on a specific development project, it shall identify the
public improvement that the fee will be used to finance.
66006.5. (a) A city or county which imposes an assessment, fee, or
charge, other than a tax, for transportation purposes may, by
ordinance, prescribe conditions and procedures allowing real property
which is needed by the city or county for local transportation
purposes, or by the state for transportation projects which will not
receive any federal funds, to be donated by the obligor in
satisfaction or partial satisfaction of the assessment, fee, or
charge.
(b) To facilitate the implementation of subdivision (a), the
Department of Transportation shall do all of the following:
(1) Give priority to the refinement, modification, and enhancement
of procedures and policies dealing with right-of-way donations in
order to encourage and facilitate those donations.
(2) Reduce or simplify paperwork requirements involving
right-of-way procurement.
(3) Increase communication and education efforts as a means to
solicit and encourage voluntary right-of-way donations.
(4) Enhance communication and coordination with local public
entities through agreements of understanding that address state
acceptance of right-of-way donations.
66007. (a) Except as otherwise provided in subdivisions (b) and
(g), any local agency that imposes any fees or charges on a
residential development for the construction of public improvements
or facilities shall not require the payment of those fees or charges,
notwithstanding any other provision of law, until the date of the
final inspection, or the date the certificate of occupancy is issued,
whichever occurs first. However, utility service fees may be
collected at the time an application for utility service is received.
If the residential development contains more than one dwelling, the
local agency may determine whether the fees or charges shall be paid
on a pro rata basis for each dwelling when it receives its final
inspection or certificate of occupancy, whichever occurs first; on a
pro rata basis when a certain percentage of the dwellings have
received their final inspection or certificate of occupancy,
whichever occurs first; or on a lump-sum basis when the first
dwelling in the development receives its final inspection or
certificate of occupancy, whichever occurs first.
(b) (1) Notwithstanding subdivision (a), the local agency may
require the payment of those fees or charges at an earlier time if
(A) the local agency determines that the fees or charges will be
collected for public improvements or facilities for which an account
has been established and funds appropriated and for which the local
agency has adopted a proposed construction schedule or plan prior to
final inspection or issuance of the certificate of occupancy or (B)
the fees or charges are to reimburse the local agency for
expenditures previously made. "Appropriated," as used in this
subdivision, means authorization by the governing body of the local
agency for which the fee is collected to make expenditures and incur
obligations for specific purposes.
(2) (A) Paragraph (1) does not apply to units reserved for
occupancy by lower income households included in a residential
development proposed by a nonprofit housing developer in which at
least 49 percent of the total units are reserved for occupancy by
lower income households, as defined in Section 50079.5 of the Health
and Safety Code, at an affordable rent, as defined in Section 50053
of the Health and Safety Code. In addition to the contract that may
be required under subdivision (c), a city, county, or city and county
may require the posting of a performance bond or a letter of credit
from a federally insured, recognized depository institution to
guarantee payment of any fees or charges that are subject to this
paragraph. Fees and charges exempted from paragraph (1) under this
paragraph shall become immediately due and payable when the
residential development no longer meets the requirements of this
paragraph.
(B) The exception provided in subparagraph (A) does not apply to
fees and charges levied pursuant to Chapter 6 (commencing with
Section 17620) of Part 10.5 of Division 1 of Title 1 of the Education
Code.
(c) (1) If any fee or charge specified in subdivision (a) is not
fully paid prior to issuance of a building permit for construction of
any portion of the residential development encumbered thereby, the
local agency issuing the building permit may require the property
owner, or lessee if the lessee's interest appears of record, as a
condition of issuance of the building permit, to execute a contract
to pay the fee or charge, or applicable portion thereof, within the
time specified in subdivision (a). If the fee or charge is prorated
pursuant to subdivision (a), the obligation under the contract shall
be similarly prorated.
(2) The obligation to pay the fee or charge shall inure to the
benefit of, and be enforceable by, the local agency that imposed the
fee or charge, regardless of whether it is a party to the contract.
The contract shall contain a legal description of the property
affected, shall be recorded in the office of the county recorder of
the county and, from the date of recordation, shall constitute a lien
for the payment of the fee or charge, which shall be enforceable
against successors in interest to the property owner or lessee at the
time of issuance of the building permit. The contract shall be
recorded in the grantor-grantee index in the name of the public
agency issuing the building permit as grantee and in the name of the
property owner or lessee as grantor. The local agency shall record a
release of the obligation, containing a legal description of the
property, in the event the obligation is paid in full, or a partial
release in the event the fee or charge is prorated pursuant to
subdivision (a).
(3) The contract may require the property owner or lessee to
provide appropriate notification of the opening of any escrow for the
sale of the property for which the building permit was issued and to
provide in the escrow instructions that the fee or charge be paid to
the local agency imposing the same from the sale proceeds in escrow
prior to disbursing proceeds to the seller.
(d) This section applies only to fees collected by a local agency
to fund the construction of public improvements or facilities. It
does not apply to fees collected to cover the cost of code
enforcement or inspection services, or to other fees collected to pay
for the cost of enforcement of local ordinances or state law.
(e) "Final inspection" or "certificate of occupancy," as used in
this section, have the same meaning as described in Sections 305 and
307 of the Uniform Building Code, International Conference of
Building Officials, 1985 edition.
(f) Methods of complying with the requirement in subdivision (b)
that a proposed construction schedule or plan be adopted, include,
but are not limited to, (1) the adoption of the capital improvement
plan described in Section 66002, or (2) the submittal of a five-year
plan for construction and rehabilitation of school facilities
pursuant to subdivision (c) of Section 17017.5 of the Education Code.
(g) A local agency may defer the collection of one or more fees up
to the close of escrow. This subdivision shall not apply to fees and
charges levied pursuant to Chapter 6 (commencing with Section 17620)
of Part 10.5 of Division 1 of Title 1 of the Education Code.
66008. A local agency shall expend a fee for public improvements,
as accounted for pursuant to Section 66006, solely and exclusively
for the purpose or purposes, as identified in subdivision (f) of
Section 66006, for which the fee was collected. The fee shall not be
levied, collected, or imposed for general revenue purposes.
