How Much Does It Cost to Permit a House?
Transcript of How Much Does It Cost to Permit a House?
POLICY BRIEFMAY 2021 UPDATE
An analysis of city and county compliance with California AB 1483 and recommendations to improve the transparency of development fees
IN CONSULTATION WITH TERNER CENTER
How Much Does It Cost to Permit a House?
Acknowledgements
Author: Hannah SchwartzIn Consultation With: The Terner Center for Housing Innovation at UC Berkeley
Special thanks to David Garcia, Terner Center Policy Director, for his deep partnership in this work from the beginning, and to Elizabeth Kneebone, Terner Center Research Director; Michael Lane, SPUR State Policy Director; and Nicholas Josefowitz, SPUR Chief of Policy, for their ongoing engagement in this work from the beginning and without whom this paper would not have been possible. Thanks also to Todd David, Oz Erickson, Jonathan Fearn, Pedro Galvao, Nevada Merriman, Gregg Miller, Mary Murphy, Andrea Osgood, Ken Rich, and Elizabeth Watty for their wisdom, insight and feedback.
Contents
Introduction 4
Background 5
Methodology 7
AB1483Compliance 7
Recommendations 10
Conclusion 12
AppendixofCities 13
DEVELOPMENTFEES 4
IntroductionCaliforniaisinthemidstofanenduringhousingaffordabilitycrisisthatisrootedinalackofhousingsupplyand
perpetuatedbythehighcostsofdevelopment.Thispaperfocusesononeobstacleinthedevelopmentprocess
thatcancontributetothesesteepcostsandhamperoverallhousingproduction:thelackoftransparencyaround
developmentfeesandrequirementsatthelocallevel.ThislackoftransparencyledtothepassageofAssembly
Bill1483in2019.AB1483(Grayson)putinplaceseveralfeetransparencymeasures,suchasrequiringthatlocal
policiesaroundfees,housingaffordabilityrequirementsandzoningbeclearlypostedonline.Insurveyinglocal
progresstowardmeetingtherequirementsofAB1483,SPURnotedawidespreadlackofcompliancewith
theprovisionsofthebill.Forinstance,lessthanhalfofthejurisdictionsexaminedappearedtopostallofthe
feesapplicabletonewhousingdevelopmentontheirwebsites.Basedonthisanalysis,SPURproposesasetof
recommendationstoimprovethetransparencyofresidentialdevelopmentfeesandrequirementsacrossthe
state.
PhotobySergioRuiz
BackgroundAnumberoflocalpolicydecisionscanincreasethecostsofhousingdevelopmentandultimatelyimpactthe
typeandamountofhousingproduced.Thesepolicydecisionsincludezoningdesignations,buildingcode
requirementsandotherlanduseregulations,aswellasthelengthandcomplexityofprojectapprovalprocesses.
Additionally,theamountsthatjurisdictionschargeinfeesandexactions(i.e.,contributionstothecommunity
thatlocalgovernmentsrequireofdevelopers)canincreaseprojectcosts,resultinginlesshousingproduction
andhigherhousingprices.Theprimaryexampleofsuchfeesisthedevelopmentimpactfee,whichcanbelevied
byvariousentitieswithinajurisdiction(e.g.,schooldistricts,utilitydistrictsandspecialdistricts).Development
impactfeesimposedbycitiesareintendedtopayfortheproject’simpactonpublicinfrastructure,suchas
parks,utilities,androads.Otherfeesandexactionscanalsobelevied,includingadministrativefeesthatcover
costsincurredbycitydepartmentsforprocessingandapprovingpermitsandapprovals.Whilethesumofthe
totalfeesandexactionschargedbylocalgovernmentcanvarysignificantlyacrossjurisdictions,theyoften
amounttobetween6%and18%oftotalconstructioncosts.1SPUR’srecentlypublishedreportMeeting the
NeedrecommendsthattheCaliforniaDepartmentofHousingandCommunityDevelopment(HCD)developa
mechanismtocapfeesinjurisdictionswherethetotalfeeburdenisundermininghousingproduction.2
Developmentfeesandrequirementsareoftencriticaltoensuringthatajurisdictioncanadequately
accommodatenewgrowth.However,existingresearchpointstotheneedforstateregulationinthisarea
toensurethatfeesarejustifiedandthatthetotalfeeburdendoesn’timpedenewhousingdevelopment.3
Specifically,feetransparencyiskeytoensuringthathomebuilderscaneasilyaccessfeeinformationandthat
theycanaccuratelycalculatethecostofbuildinghousinginanygivenjurisdiction.TheTernerCenter’s2019
studyResidential Impact Fees in Californiafoundthatimpactfeesareoftenhardtolocateoncitywebsitesor
aremissingaltogether.Additionally,nexusstudies(seefigure1),whichjustifyimpactfeeamounts,canalsobe
challengingtofind,missingoroutdated.4
Specialdistricts—Californiahasover5,000—complicatethepicturefurtherbylevyingtheirownfeeson
developmentprojects.Despitethecomplexityofthesefees,andthelackofconformityacrossthestate,most
jurisdictionsprovidenoguidelinesforcalculatingfeesorestimatingthetotalfeeamountforanygivenproject.
Thelackoffeetransparencyandnecessaryguidance,particularlyattheoutsetofaproject,resultsin
unforeseenprojectcosts,whichincreasesrisksfordevelopersandcanresultinprojectdelays,potentially
causingfewerhomestobebuilt.Italsocreatesbarriersforsmallerandnewercommunity-leddevelopers,
whohaveneithertheexperience,relationshipsorcapitaltowadethroughtheuncertainty,effectivelylimiting
thesupplyofsmallerprojects.Themurkynatureoffeesandrequirementsacrossjurisdictionsalsoresultsin
inadequatedataonthetruecostsofproducinghousinginCalifornia,whichconfoundsourabilitytomake
progressonhousingaffordabilityoverall.5
1 SarahMawhorter,DavidGarciaandHayleyRaetz,ItAllAddsUp:TheCostofHousingDevelopmentFeesinSevenCaliforniaCities,TernerCenterforHousingInnovation,March
2018,https://ternercenter.berkeley.edu/research-and-policy/it-all-adds-up-development-fees
2 SarahKarlinsky,MeetingtheNeed:ThePathto2.2MillionNewHomesintheBayAreaby2070,SPUR,https://www.spur.org/sites/default/files/2021-04/SPUR_Meeting_the_
Need.pdf
3 Feeamount(inadditiontofeetransparency)isalsoanissuethatshouldbeaddressedwithstateregulation.Seemoreat:https://www.spur.org/sites/default/files/2021-04/
SPUR_Meeting_the_Need.pdf
4 HayleyRaetzetal.,Residential Impact Fees in California,TernerCenterforHousingInnovation,August2019,https://ternercenter.berkeley.edu/wp-content/uploads/pdfs/
Residential_Impact_Fees_in_California_August_2019.pdf
5 Thereareongoingeffortstoimprovetheavailabilityofdataatthelocalandstatelevels,includingSB477(Weiner),which,ifpassed,wouldrequirejurisdictionstoreportthe
informationmandatedfromAB1483intheirAnnualProgressReportstotheHCD.
ROOFTOPSOLAR 5
DEVELOPMENT FEES 6
ToaddressthelackoffeetransparencyacrossCalifornia,AssemblymemberTimGraysonintroducedAB1483
in2019.6Thelegislationrequirescities,countiesandspecialdistrictstomakehousingdevelopmentinformation
accessibletothepublicontheirwebsites.Suchinformationincludesthefeeschedule,impactfeenexusstudies,
zoningordinances,developmentanddesignstandards,andseveralexactions,includingconstructionexcise
taxes,7publicartrequirementsorin-lieupayments,Mello-Roostaxes,8andmandateddedicationstoparklandor
otherin-lieufees.(Formoreontheserequirements,seefigure1.)AB1483alsorequiresHCDtodevelopa10-year
housingdatastrategythatincludesanevaluationofdatapriorities,aplanforhowtoachievemoreconsistent
terminologyforhousingdataacrossthestate,anassessmentofthequalityofdatasubmittedbyjurisdictions’
annualreports,andrecommendationsbasedonthatassessment.Thislegislationrepresentsanimportantstep
towardmandatingabaselineleveloffeetransparencyacrossalljurisdictionsinthestate.Toevaluatetheimpact
ofAB1483andassessfeetransparencymorebroadly,SPUR,inconsultationwiththeTernerCenter,analyzeda
selectionofjurisdictionsacrossthestateandconductedstakeholderinterviews.
FIGURE 1
AB 1483’s Transparency RequirementsAB1483 requires cities, counties and special districts to
make the following housing development information
accessible to the public on their websites.
AB 1483 requirement What it is
Fee schedule
A fee schedule is a list of a jurisdiction’s fees that may be levied for a variety of purposes. Jurisdictions vary significantly in how they structure their fee schedules; some have a master fee schedule that includes all fees across departments, while others have department-specific fee schedules. AB 1483 requires that each jurisdiction post all fees applicable to housing development.
Impact fee nexus studies
Impact fee nexus studies are required by the Mitigation Fee Act (first passed in 1987) to explain the connection (or “nexus”) between a proposed development and the alleged impact it will have on a jurisdiction’s infrastructure and services, thereby justifying the impact fee amounts. AB 1483 requires jurisdictions to post “an archive of impact fee nexus studies, cost of service studies, or equivalent.”
Affordability requirements
Affordability requirements mandate that developments include a specified percentage of the units as affordable units or provide “an alternative means of compliance with that requirement including, but not limited to, in-lieu fees, land dedication, off-site construction, or acquisition and rehabilitation of existing units.”9
Zoning ordinances
Zoning ordinances define the types of developments, such as residential or commercial, that can be built in geographic zones throughout a jurisdiction. Zoning ordinances often specify other regulations, such as parcel size and density. AB 1483 requires jurisdictions to post all zoning ordinances that specify the zoning requirements for each parcel.
Development and design standards
Development standards, otherwise known as design standards, specify requirements such as the dis-tance between a proposed development and other buildings (the “setback”) and certain aspects of the architectural design. AB 1483 requires jurisdictions to post all development standards that apply to each parcel.
Dedications to parkland or in-lieu feesDedications to parkland or in-lieu fees require developers to dedicate a specified amount of land for public open space or pay an in-lieu fee that the jurisdiction will use to acquire land or develop park facili-ties. To comply with AB 1483, jurisdictions must make this requirement available on their websites.
6 CaliforniaLegislature,AssemblyBillNo.1483,https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB1483
7 Aconstructionexcisetaxisataximposedonallbuildingpermitapplicationsfornewconstructionandadditionstoexistingstructures.Constructionexcisetaxesareoftensetat
auniformrateandbasedontheaveragevaluationpersquarefootforeachtypeofconstruction.
8 AMello-RoostaxisaparceltaximposedonpropertyownerswithinaspecialtypeofCommunityFacilitiesDistrictknownasaMello-RoosDistrict.Thenameisderivedfromthe
co-authorsofthebillthatenabledthecreationofMello-RoosDistricts,StateSenatorHenryJ.Mello(D-Watsonville)andAssemblypersonMikeRoos(D-LosAngeles).
9 CaliforniaLegislature,AssemblyBillNo.1483,https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB1483
DEVELOPMENT FEES 7
MethodologyToanalyzetheimpactofAB1483,SPURsurveyedthewebsitesof60jurisdictions(50citiesand10counties)and
evaluatedtheaccessibilityoftherequiredinformationanddocuments.10The60jurisdictionswereselectedto
ensureadiversityofsizeandgeography.
ThisanalysisexaminedlocalcompliancewithrequirementsimposedbyAB1483thatarebroadlyapplicable
tocitiesandcountiesacrossthestate:feeschedules,anarchiveofimpactfeenexusstudies,affordability
requirements,zoningordinances,developmentanddesignstandards,anddedicationstoparklandorin-lieufees.
ItdidnotexaminecompliancewithsomeAB1483requirements,suchaspublicartrequirements,construction
excisetaxes,andMello-Roostaxes,asitwasoftendifficulttodeterminewhethertheseweremissingfroma
jurisdiction’swebsiteornotapplicabletothatjurisdiction.
Tobetterunderstandtheexperienceofnavigatingthisstageofthedevelopmentprocessandassessingfees,
SPURspokewithlocalgovernmentstaff,housingdevelopers,landuselawexpertsandotherstakeholders.
AB 1483 ComplianceInasurveyof60jurisdictions,SPURfoundthatmanyjurisdictionshaveyettocomeintocompliancewith
AB1483,astheirwebsitesoftenhaveincompleteorunreliableinformationregardingdevelopmentfeesand
requirements.Assessingthefullsuiteofapplicablefeesforanygivenhousingproject,letalonecalculatingthose
feeswithanydegreeofaccuracy,remainschallenging.
However,severaljurisdictionsaremakingstridestoimprovethetransparencyoftheirfeesanddevelopment
requirementsthroughimprovedonlinetoolsandresources.Theseimprovementsprovideexamplesofbest
practicesthatcouldbeadoptedacrossthestate,asdiscussedintheRecommendationssection.SPUR’sfindings,
brokendownbyAB1483requirement,aredescribedbelow.
Key to Graphs:N/A: Thisjurisdictiondoesnothavethefeeorrequirement.
Unknown:Itisunknownwhetherthisinformationismissingornotapplicable.(Thislabelonlyappliesto
affordabilityrequirementsanddedicationstoparkland.)
Missing:Thisrequirementisapplicabletothejurisdiction,butitisnotavailableonline.
Challenging to locate online:Therequiredinformationisonlinebutinalocationthatischallengingtofind,such
asinaresolutionwithincitycouncilmeetingmaterials.
Outdated: Therequiredinformationisoutdated.
Outdated or incomplete: Therequiredinformationisoutdatedand/ordoesnotappeartobecomplete.(This
labelonlyappliestofeeschedules,asthatwastheonlyrequirementwhereSPURrecordedcompleteness.)
Straightforward to locate: Therequiredinformationispostedonthejurisdiction’swebsiteinalocationwhereit
10 Seeappendixforlistofjurisdictions.
DEVELOPMENT FEES 8
isaccessible,suchastheplanningorbuildingdepartmentlandingpage.
Straightforward to locate and complete: Inadditiontobeingaccessible,therequiredinformationappearstobe
comprehensive.(Thislabelonlyappliestofeeschedules,asthatwastheonlyrequirementwhereSPURrecorded
completeness.)
Comprehensive fee sched-ules were available on less than half of websites.Jurisdictionsdifferedsignificantlyinhowthey
structuredtheirfeeschedulesandinwhatinformation
theyprovidedintheirfeeschedules.Justunderhalf
ofthesurveyedjurisdictionspostedonescheduleor
multiplefeeschedulesthatappearedtoincludethefull
suiteoffees.Another39%ofthejurisdictionsdisplayed
feescheduleinformationthatwasincompleteand/or
outdated.Forexample,itwascommonforawebsitetoprovideapermitfeeschedulebuthavenoinformation
regardingimpactfees.
Consequently,whilethemajorityofcitieshadadevelopmentfeeschedule(ormultiplefeeschedules),it
oftendidnotcoverallofthejurisdiction’sapplicablefees.Forexample,afeeschedulemightnotincludefees
chargedacrossalldepartments,leadingtoinaccurateestimatesofwhatdeveloperswillultimatelyowe.Inour
interviews,developerscitedthelackofconsistencyamongfeeschedulesasafactorthatleadstoconfusionand
notedthatitisrarelypossibletoarriveatafeeestimatebasedontheinformationavailableonline.Calculating
feeswithaccuracyoftenrequiresthedevelopertohavesignificantexperienceworkinginthejurisdiction,and
eventhen,runningintounanticipatedfeesiscommon.
Over three-quarters of jurisdictions reviewed did not have nexus studies available as required by AB 1483.TheMitigationFeeActrequiresnexusstudiesinorder
toquantifytherelationshipbetweennewdevelopment
anditsimpactonpublicinfrastructureandservices.
Withoutaccesstonexusstudies,itisunclearhow
impactfeeshavebeencalculatedandwhetherthe
feesarejustified.AB1483mandatesthatjurisdictions’
websitesinclude“anarchiveofimpactfeenexus
studies,costofservicestudies,orequivalent,asspecified.”Only18.7%ofthesurveyedwebsitespostednexus
studies.Onlytwocities,TurlockandCampbell,appearedtopostanarchiveofnexusstudies,asrequired.
Fee Schedule Breakdown
Nexus Fee Studies Breakdown
DEVELOPMENT FEES 9
Approximately one-quarter of jurisdictions posted their affordability requirements in an accessible location. Manyjurisdictionsdonothaveaffordability
requirements,andwithoutconfirmationfrom
planningstaff,itwaschallengingtoassesswhether
thisinformationwasmissingornotapplicabletoa
jurisdiction.InSPUR’ssurvey,42.4%ofjurisdictions
hadaffordabilityrequirementsontheirwebsites
(27.1%easilyaccessible,15.3%difficulttofind).For
another23.7%,itwasunclearwhethertherequirementsweremissingornotapplicable.In3.4%ofcases,
therequirementsweremissing,and30.5%ofjurisdictionsconfirmedthattheydonothaveaffordability
requirements.
Zoning ordinances were widely available across jurisdictions’ websites.Thevastmajorityofjurisdictions—91.5%—posted
zoningordinancesinaneasilyaccessiblelocation,
typicallywithintheirmunicipalcode,whichwasoften
linkedonamainplanningdepartment(orsimilar
department)webpage.Theaccessibilityofthis
informationisimportantbecauseitenablesthepublic
toassesswhattypesofdevelopmentcanbebuilt
throughoutthejurisdiction.
Development and design standards were available on just over 80% of websites but were often challenging to locate.Designstandardswererelativelyaccessible.Theywere
straightforwardtolocatefor55.9%ofjurisdictions.
Another27.1%postedthestandardsonline,butlocating
themoftenmeantsiftingthroughspecificplans,master
Affordability Requirements Breakdown
Zoning Ordinances Breakdown
Development/Design Standards Breakdown
DEVELOPMENT FEES 10
plansorthemunicipalcode.Ensuringthatdeveloperscanaccessthefulldesignstandardsisimportantbecause
thesestandardscanincursignificantadditionalcostsiftheyarenotaccountedforintheoriginalplan.
Approximately one-quarter of jurisdictions posted information about parkland dedication requirements in an accessible location.Dedicationstoparklandorin-lieufeesweresometimes,
butnotalways,includedonfeeschedulesandwere
oftendifficulttodistinguishfromothertypesofpark
fees.Aswithaffordabilityrequirements,itwasoften
challengingtoassesswhethertheserequirementswere
notapplicableorweremissing,withnearlyone-thirdofjurisdictionsfallingintothe“unknown”category.
RecommendationsBasedonthewebsiteanalysisandstakeholderinterviews,SPURrecommendsthefollowingbestpracticesto
furtherimprovethetransparencyofdevelopmentfees.
1 City and county websites should clearly direct users to landing pages where the information required
under AB 1483 is readily visible. Acrossthe60jurisdictionssurveyed,twocitieshadlandingpagesthat
containedtheinformationmandatedunderAB1483:SanJuanCapistranoandCampbell.Athirdcityhada
landingpagethatappearedtobeunderdevelopmentanddidnotincludemuchoftheinformationmandated
underAB1483.Adedicatedlandingpagecontainingtheinformationdevelopersneedinordertosubmita
housingdevelopmentproposal,includingtheinformationmandatedbyAB1483,isonewaytoensurethat
criticalinformationislocatedinanaccessiblelocation.Alandingpagewouldcreatetransparencyand
significantlyreduceuncertainty,spurringnewaffordableandmarket-ratehousingconstruction.Suchlanding
pagescouldalsobeexpandedtoincludealloftheinformation,beyondfees,thatgoesintodeterminingwhat
housingcanbebuiltinajurisdictionandwhatfeesandrequirementsareimposedonnewhomes.Jurisdictions
shouldincludealinktothislandingpageintheirHousingElementAnnualProgressReportstoHCD,whichHCD
couldthenusetoassesscomplianceannually.11
11 IfSB477passes,thenjurisdictionswillberequiredtoreporttheinformationmandatedunderAB1483intheirAnnualProgressReports.Alandingpagewouldstreamlinethis
process.
Dedications of Parkland or In-lieu Fees Breakdown
DEVELOPMENT FEES 11
2 HCD should develop a fee schedule template for all jurisdictions to utilize, as part of the 10-year
housing data strategy required by AB 1483. Whilejurisdictionsdifferinhowtheycalculatefeesandwhat
feestheycharge,abaselineforconsistencyinthewaythesefeesaredisplayedwouldallowthepublictoeasily
understandwhatfeeseachjurisdictionislevyingonhousingdevelopments.HCDshoulddevelopastandard
templateandalistofbestpracticesaroundpresentinginformationforallfeesandexactionsleviedbya
jurisdiction.Thetemplatecouldbeassimpleasalistofallfeeswiththeapproximatecostperunitorpersquare
foot,thedistricts/neighborhoodswhereeachfeeapplies,theusesthatthefeeappliestoandwhoshouldbe
contactedinordertocalculatetotalfees.Thetemplateshouldnotreplacemoreinnovativefeetools(suchasa
publiclyavailabletoolforcalculatingtotalprojectfees)butrathersupplementtheseapproaches.Theprimary
objectiveofthetemplateshouldbetoclearlyindicateallofthepotentialfeesthatdeveloperscouldencounter
whenconstructinghousinginthejurisdiction,includingfeesassociatedwithspecialdistricts,affordability
requirementsandparklanddedicationsorin-lieufees.
3 Jurisdictions should be required to provide a publicly available tool for calculating total project fees.
Ascities,countiesandspecialdistrictsdiffersignificantlyinhowtheylevyfeesonhousingdevelopments,
providingguidanceonhowtocalculatethefeestack(thecombinedcostofallfees)foranygivenprojectis
oftennecessaryinorderfordeveloperstoarriveatanaccuratefeeestimate.12Jurisdictionswithsimplefee
structurescouldprovideafeeestimatebybuildingtype—forexample,atotalfeeestimateforduplexes.
Jurisdictionswithmorecomplexfeestructurescouldofferafillableworksheetorcalculatorinwhichdevelopers
couldinputthespecificsoftheprojectandreceiveasummaryofthefeestack.Forexample,TheCityofTurlock
providesafillableworksheet,andtheCityofBerkeley’spermitcalculatorshowsoneexampleofacalculator
format(althoughitonlycomputespermitfees,nottotalfees).13SanFranciscoisintheprocessofdevelopinga
robustimpactfeecalculator,whichcouldserveasamodelforotherlargejurisdictions.14Forsmaller
jurisdictions,HCDshouldconsiderdevelopingafeeestimatecalculatorthatcouldbeeasilyandwidelyadopted.
4 The total fee estimate should be provided or confirmed on the day the application, not the project, is
deemed complete. SPUR’sinterviewsfoundthatunexpectedfeesorunexpectedfeeincreaseslateinthe
developmentprocessareacommonchallenge.Currently,thetimingoffeesvariesdependingonboththe
jurisdiction’sdevelopmentprocessandthetypeoffee.15Policymakersshouldconsiderrequiringjurisdictionsto
provideatotalfeeestimatealongwiththeformalletteracknowledgingthatanapplicationhasbeendeemed
complete.ThiswouldcomplementtheprovisionunderSB330(Skinner,2019)thatlimitsjurisdictions’abilityto
increasefeesonceanapplicationisdeemedcomplete.
Jurisdictionsthatrelyonacost-recoverymethodtocovertheiradministrativecostsshouldprovidefee
estimatesforcost-recoveryfeesbasedontheaveragesofthosefeesfromsimilarprojects.
Inaddition,lawmakerscouldrequirejurisdictionstoprovideapreliminaryfeeestimateaspartofthepre-
applicationprocess,helpingdevelopersballparkthetotalfeesthatwouldneedtobepaidandreducingtherisk
thatanunknownfeesurfaceslaterinthedevelopmentprocess.
12 Raetzetal.Seenote4.
13 CityofTurlock,“DevelopmentFeeEstimate,”https://ci.turlock.ca.us/buildinginturlock/developmentfeeestimate/;andCityofBerkeley,“BuildingPermitFeeEstimator,”https://
www.cityofberkeley.info/permitfeeEstimator.aspx
14 SanFranciscoPlanning,“ImpactFeeCalculator,”https://sfcpc.github.io/ifc/
15 Raetzetal.Seenote4.
DEVELOPMENT FEES 12
5 The state should hold local jurisdictions accountable for fee transparency. Thetremendousnumberof
citiesthathaveyettocomeintocompliancewithAB1483suggeststhatthestategovernmentshould
holdjurisdictionsaccountableforfeetransparencyinamoredirectway.Thatwouldmeanregularlyassessing
whethercities,countiesandspecialdistrictsareincompliancewithAB1483andbringingproceedingsagainst
jurisdictionsthatareoutofcompliance.
Inaddition,HCDcouldrequirecitiestohaveabaselineleveloffeetransparencyinordertoqualifyfora
ProhousingDesignation(whichmakescitiesmorecompetitiveforcertainstateaffordablehousing,
transportationandinfrastructuregrants).Alternatively,HCDortheStateLegislaturecouldrequirecitiestohave
abaselineleveloffeetransparencybeforethecities’housingelementsareconsideredcomplete.16Acitywithan
incompletehousingelementrisksstatesanctionandcouldlosetheabilitytodenycertainzoning-compliant
housingdevelopments.
ConclusionDevelopmentfeesandrequirementscanaddsignificantcoststonewhousingdevelopment.Thehiddenand
convolutednatureofthesefeescreatesuncertaintyintheprocess,thusdeterringwould-bedevelopersand
unnecessarilyescalatingprojectexpensesinastatewhereit’salreadyexpensivetobuild.Thisincreasedcostand
uncertaintythreatenstoreducetheproductionofbothmarket-rateandaffordablehousing.AB1483mandates
transparencyindevelopmentfeesacrossthestateandisacriticalstepforward;however,asignificantnumber
ofjurisdictionsarenotyetadheringtotheprovisionsofthebill.Makingdevelopmentfeesandrequirements
transparentandaccessibletothepublic,ineveryjurisdictionacrossthestate,isonemeaningfulsteptoward
solvingCalifornia’shousingaffordabilitycrisis.
16 Housingelementsareplansthatthestaterequireseachcityandcountytoprepare.Theyprovideananalysisofajurisdiction’shousingneedsforallincomelevelsandstrategies
toprovideforthosehousingneeds.Theyareakeypartofeachjurisdiction’sgeneralplan.
DEVELOPMENTFEES 13
SPURsurveyedthewebsitesofthefollowing60jurisdictions(50citiesand10counties)forthisreport,and
evaluatedtheaccessibilityoftheinformationanddocumentsrequiredbyAB1483.10The60jurisdictionswere
selectedtoensureadiversityofsizeandgeography.
1. Anaheim
2. Auburn
3. Bakersfield
4. Berkeley
5. Bishop
6. Calexico
7. Campbell
8. Clovis
9. Coronado
10. DanaPoint
11. Delano
12. ElCajon
13. Eureka
14. FosterCity
15. Fresno
16. Hemet
17. HumboldtCounty
18. Huron
19. LaPalma
20. Larkspur
21. Lathrop
22. Livermore
23. LosGatos
24. MammothLakes
25. Modesto
26. MonoCounty
27. Montebello
28. NationalCity
29. Newark
30. Newman
31. Oceanside
32. OrangeCounty
33. Oxnard
34. PalmSprings
35. Palmdale
36. PismoBeach
37. Redding
38. Riverside
39. Sacramento
40.SanBernardinoCounty
41. SanDiego
42. SanFrancisco
43. SanJoaquinCounty
44.SanJose
45. SanJuanCapistrano
46. SanLuisObispoCounty
47. SanMateoCounty
48. SantaAna
49. SantaBarbaraCounty
50. SantaClarita
51. SantaRosa
52. SolanoCounty
53. SonomaCounty
54. SouthLakeTahoe
55. SouthSanFrancisco
56. Stockton
57. Torrance
58. Turlock
59. Upland
60.YubaCity
Appendix