Construction fees in California
This state has a general impact fee enabling act. Local governments here charge under a statewide statute, which means there are written limits on what can be charged, how it must be calculated and when it must be refunded.
Cal. Gov't Code § 66000 et seq. (Mitigation Fee Act); § 66477 (Quimby Act); Ed. Code § 17620 et seq. (school fees)
Guiding standard in the act: reasonable relationship. That phrase is the ceiling on what may be charged, and it is the cheapest argument a fee payer has.
Your fee stack in California
Answer four things and get the list of every body that can bill this project, what each one is allowed to charge for, and the rights your state's law gives you before you pay.
What California says about your project
By word count the California scheme is roughly four times longer than any other state's. Three separate statutes overlap: the Mitigation Fee Act for general fees, the Quimby Act for park land and in-lieu payments, and the Education Code for school fees.
Section 66001(g) says a fee may not include the cost of fixing deficiencies that already exist. That is the sentence most fee challenges are built on.
California is the outlier on revenue credits: they are generally not given here, apparently because of how state courts have read the act.
This is the state where Sheetz arose, and where the follow-on litigation is still running. See the Sheetz guide.
Collection of most fees other than school fees can be deferred to close of escrow.
What the fees may pay for
10 of 10 facility categories are eligible here. A charge for anything not on this list is resting on some other authority, and that is a fair question to ask.
| Facility type | Eligible for impact fees |
|---|---|
| Roads and transportation | Yes |
| Water facilities | Yes |
| Wastewater and sewer | Yes |
| Stormwater and drainage | Yes |
| Parks and recreation | Yes |
| Fire | Yes |
| Police | Yes |
| Libraries | Yes |
| Solid waste | Yes |
| Schools | Yes |
What the jurisdiction had to do first
These are the homework requirements in the act. Where one is required and missing, that is a procedural defect you can raise without a lawyer.
| Planning requirement | In the act |
|---|---|
| Written analysis required | Yes |
| Service areas required | Yes |
| List of projects required | Yes |
| Growth projections required | Not required |
| Level of service standards required | Not required |
Timing, credits, refunds and waivers
| Provision | What the act says |
|---|---|
| When the fee may be collected | certificate of occupancy |
| Recoupment of prior costs allowed | Yes |
| Notice before a new or increased fee | 30 days |
| Phase-in before a fee takes effect | 60 days |
| Spend-or-refund window | 5 years |
| Administrative share allowed | 3% (school fees) |
What to do next in California
- Confirm whether your parcel is in a city or unincorporated, then pull the taxing district list from the assessor's record. Why that list is the real fee list.
- Request the current adopted fee schedule and a written fee estimate for the address. The six-step sequence.
- Call each utility separately. Tap fees usually sit outside the act, and are often the largest line.
- If you are dedicating land or building improvements, request the credit in writing before assessment. How to ask.
- Calendar the refund date. Unspent fees here come back after 5 years. Almost nobody claims these.
- Pay under protest if you intend to dispute anything at all. What that preserves.