BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 341 (Nguyen) - Housing: Department of Housing and Community
Development: local fees.
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|Version: March 26, 2015 |Policy Vote: T. & H. 10 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 11, 2015 |Consultant: Mark McKenzie |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: SB 341 would require the Department of Housing and
Community Development (HCD) to conduct a periodic statewide
survey of cities and counties to determine the total amount of
fees and charges that local agencies impose on new home
construction. The bill would also require HCD to take a number
of mandatory actions relating to housing that are currently
specified as discretionary actions HCD may take under its
general authority.
Fiscal
Impact:
HCD costs of approximately $267,000, and similar costs every
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five years thereafter, to survey local agency residential
development fees. (General Fund)
Unknown, but potentially significant costs related to
provisions that require, rather than authorize, HCD to conduct
specified general activities. (General Fund)
Background: Existing law authorizes local agencies to charge fees
associated with local development. Except for school fees,
which are capped in the Sterling Act, local agencies have fairly
broad discretion over the number, type, and amount of local
development fees, but there must generally be a nexus between
the amount of the fee and purpose for which the fee is charged.
Cities and counties typically charge more than two dozen
different types of development-related fees, most of which fall
into three broad categories: (1) planning fees, which cover
administrative costs of reviewing planning documents; (2)
building permit, plan check, and inspection fees, which cover
site-specific review requirements; and (3) capital facilities
fees, which cover up-front costs of providing capital
infrastructure. The largest component is usually capital
facilities fees and may cover on-site costs of connecting to
utilities, broader off-site impact fees associated with
providing infrastructure to serve residential development,
mitigation fees, and in-lieu fees. Local development fees may
vary significantly by jurisdiction for a variety of reasons
(density, land use, location, etc.), and these fees may be a
sizable component of housing production costs.
Existing law provides HCD with the general authority to do any
of the following:
Make investigations of housing and community development in
the state.
Call conferences of representatives of all levels of
government, industry, and private groups to discuss housing
and community development problems in California.
Investigate and report on substandard housing, the resulting
problems, and the work being done to remedy those conditions.
Study the operation and enforcement of housing, building,
zoning, and subdivision laws and regulations, of housing
finance, taxes, redevelopment programs and public housing
projects, as related to housing and community development.
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Examine the records of housing authorities and redevelopment
agencies, and secure reports and copies of their records at
any time.
Promote the formation of organizations intended to increase
the supply of adequate housing and the proper living
environment for all people of the state.
Investigate and report, with the California Department of
Transportation, on the consistency among state, federal, and
local housing and transportation plans and programs.
Proposed Law:
SB 341 would require, rather than authorize, HCD to conduct
those actions noted above. The bill would also require HCD to
conduct a statewide survey of cities and counties to determine
the total amount of fees and charges imposed by local
jurisdictions on new residential construction. The survey must
include data on fees and charges from at least 150 cities, with
at least one city within each county, and all 58 counties. The
fees and charges surveyed must at least include the following:
Planning and zoning fees.
Environmental documentation fees.
Building permit fees.
Plan check fees.
School fees.
School mitigation fees.
Highway, road, traffic, and transit fees.
Water, wastewater, sewer, and drainage fees.
Utility or water connection fees.
Public safety fees.
Capital facilities fees
Affordable housing fees and assessments.
Parks and recreation fees.
The bill would require HCD to complete the survey and submit a
report of findings to the Legislature by January 1, 2017, and
every five years thereafter.
Staff
Comments: In 2001, HCD commissioned a study in cooperation with
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the University of California to examine the development fees
charged by local agencies throughout the state (Pay to Play:
Residential Development Fees in California Cities and Counties,
1999). This bill would require HCD to conduct an updated
statewide survey of the fees and charges imposed by local
agencies by January 1, 2017, and to update that study every five
years thereafter.
HCD would incur an estimated $267,000 in staffing costs in the
2016 calendar year to design the survey, identify sample
jurisdictions, coordinate with local agency planning staff,
compile and analyze results, and produce the report and
accompanying exhibits. These costs would recur every five
years.
SB 341 would also require, rather than authorize, HCD to conduct
a variety of general activities related to housing and community
development. Considering the lack of specificity regarding the
listed activities, such as the frequency and duration of the
duties, and the specific duties to be investigated, studied, or
examined, the fiscal impacts of these provisions is
indeterminable, but potentially significant.
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