State Allocation Board Increases Developer Fees School Districts are Authorized to Collect

Lozano Smith Client News Brief
January 2014
Number 10

On January 22, 2014, the State Allocation Board (SAB) approved an inflationary increase applicable to "Level 1" developer fees. Based on application of the Marshall & Swift Eight California Cities Index for construction costs, SAB adjusted the Level 1 fee to $3.36 per square foot for residential development and $0.54 for commercial development. The increases take effect immediately, and constitute a 4.93 percent change over the previously authorized amounts of $3.20 for residential development and $0.51 for commercial. Pursuant to Government Code section 65995, the fee may be increased by SAB every even year. School districts may now take action locally to implement the Level 1 increase.

The SAB increase does not affect "Level 2" developer fees, which must be adopted annually based on a school district's own School Facilities Needs Analysis. The change also does not affect "Level 3" fees, which school districts currently have no ability to collect. (See Client News Brief No. 44, July 2012.)

Based on this and other legal developments, we are preparing the 2014 update for Lozano Smith's publication, Developer Fee Handbook for School Facilities: A User's Guide to Qualifying for, Imposing, Increasing, Collecting, Using and Accounting for School Impact Fees in California. The update will be available shortly. The handbook is designed to assist school districts in dealing with numerous developer fee issues. The handbook can help school districts reduce their legal costs by providing comprehensive information regarding California law and the process for school impact fees. The handbook contains procedures, timelines, checklists, and forms to be used when adopting and implementing fees and/or increases.

At this time, Lozano Smith is continuing to make the handbook available to school districts at no present cost. School districts that previously ordered the handbook will be sent the 2014 updates at no charge.

For more information on the Developer Fee Handbook, or to order a copy, please contact our Client Services department. If you have any questions regarding the adoption or implementation of fee increases or any other developer fee issue, please feel free to contact one of our eight offices located statewide. You can also visit our website, follow us on Facebook or Twitter, or download our Client News Brief App.
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As the information contained herein is necessarily general, its application to a particular set of facts and circumstances may vary. For this reason, this News Brief does not constitute legal advice. We recommend that you consult with your counsel prior to acting on the information contained herein.