Plain English Breakdown
The official summary states projects are subject to a regulatory agreement with certain requirements but does not list specific income thresholds or percentages.
AB-874: Fee Waivers and Deferrals for Affordable Housing
This law requires local agencies to waive or offer loan options for development fees on certain affordable rental and ownership housing projects.
What This Bill Does
- Requires local agencies to waive fees collected to fund public improvements for residential developments with a regulatory agreement that includes income and affordability requirements.
- Excludes school construction costs, code enforcement fees, inspection services, and other ordinance enforcement fees from the required waiver.
- Gives qualified rental housing projects the option of $0 development impact fees or a deferral loan agreement.
- Gives qualified ownership housing projects the option of $0 development impact fees or a deferral loan for each income-qualified homebuyer.
- Defines 'development impact fee' as money collected by local agencies to build public improvements, with certain exceptions.
Who It Names or Affects
- Local agencies that collect development fees
- Developers of qualified residential rental projects
- Developers of qualified residential ownership projects
Terms To Know
- Development impact fee
- A charge collected by a local agency to pay for building public improvements or facilities.
- Regulatory agreement
- An agreement with a public entity that includes rules about income limits and housing affordability.
- Fee deferral agreement loan
- A development impact fee option where payment is delayed through an agreement or loan structure.
Limits and Unknowns
- The bill does not waive fees for building or rebuilding school facilities.
- Fees needed for code enforcement, inspection services, and enforcing local ordinances are not waived under this law.
- Specific income levels that qualify projects depend on the regulatory agreement details.