(California Government Code)
TITLE 7. PLANNING AND LAND USE
DIVISION 1. PLANNING AND ZONING
(Chapter 5. [commencing with Section 66100] repealed
by Stats. 1984, Ch. 1009.)
(Chapter 5. [commencing with Section 66000] added by Stats. 1987, Ch. 927.)
Chapter 5. Fees for Development Projects
66000. As used in this chapter:
(a) "Development project" means any project
undertaken for the purpose of development. "Development
project" includes a
project involving the issuance of a permit for construction
or reconstruction, but not a permit to operate.
(b) "Fee" means a monetary exaction, other
than a tax or special assessment, which is charged
by a local agency to the
applicant in connection with approval of a development
project for the purpose of defraying all or a portion
of the cost of
public facilities related to the development project,
but does not include fees specified in Section 66477,
fees for processing
applications for governmental regulatory actions or
approvals, fees collected under development agreements
adopted pursuant
to Article 2.5 (commencing with Section 65864) of Chapter
4, or fees collected pursuant to agreements with redevelopment
agencies which provide for the redevelopment of property
in furtherance or for the benefit of a redevelopment
project for
which a redevelopment plan has been adopted pursuant
to the Community Redevelopment Law (Part 1 (commencing
with
Section 33000) of Division 24 of the health and Safety
Code.
(c) "Local agency" means a county, city, whether
general law or chartered, city and county, school district,
special district,
authority, agency, any other municipal public corporation
or district, or other political subdivision of the
state.
(d) "Public facilities" includes public improvements,
public services, and community amenities.
(Added by Stats. 1987, Ch. 927; Amended by Stats. 1988,
Ch. 418; Amended by Stats. 1990, Ch. 1572.)
66001. (a) In any action establishing, increasing, or
imposing a fee as a condition of approval of a development
project by a local
agency on or after January 1, 1989, the local agency
shall do all of the following:
(1) Identify the purpose of the fee.
(2) Identify the use to which the fee is to be put.
If the use is financing public facilities, the facilities
shall be identified. That
identification may, but need not, be made by reference
to a capital improvement plan as specified in Sections
65403 or 66002,
may be made in applicable general or specific plan requirements,
or may be made in other public documents that identify
the
public facilities for which the fee is charged.
(3) Determine how there is a reasonable relationship
between the fee's use and the type of development project
on which the
fee is imposed.
(4) Determine how there is a reasonable relationship
between the need for the public facility and the type
of development
project on which the fee is imposed.
(b) In any action imposing a fee as a condition of approval
of a development project by a local agency on or after
January 1,
1989, the local agency shall determine how there is
a reasonable relationship between the amount of the
fee and the cost of the
public facility or portion of the public facility attributable
to the development on which the fee is imposed.
(c) Upon receipt of a fee subject to this section, the
local agency shall deposit, invest, account for, and
expend the fees
pursuant to Section 66006.
(d) The local agency shall make findings once each fiscal
year with respect to any portion of the fee remaining
unexpended
or uncommitted in its account five or more years after
deposit of the fee to identify the purpose to which
the fee is to be put
and to demonstrate a reasonable relationship between
the fee and the purpose for which it was charged. The
findings required
by this subdivision need only be made for moneys in
the possession of the local agency and need not be
made with respect to
letters of credit, bonds, or other instruments taken
to secure payment of the fee at a future date.
(e) Except as provided in subdivision (f), the local
agency shall refund to the then current record owner
or owners of lots or
units of the development project or projects on a prorated
basis the unexpended or uncommitted portion of the
fee, and any
interest accrued thereon, for which need cannot be demonstrated
pursuant to this subdivision. A local agency may refund
the
unexpended or uncommitted revenues by direct payment,
by providing a temporary suspension of fees, or by
any other means
consistent with the intent of this section. The determination
by the governing body of the local agency of the means
by which
those revenues are to be refunded is a legislative act.
(f) If the administrative costs of refunding unexpended
or uncommitted revenues pursuant to subdivision (e)
exceed the
amount to be refunded, the local agency, after a public
hearing, notice of which has been published pursuant
to Section 6061
and posted in three prominent places within the area
of the development project, may determine that the
revenues shall be
allocated for some other purpose for which fees are
collected subject to this chapter and which serves
the project on which the
fee was originally imposed.
(Added by Stats. 1987, Ch. 927; Amended by Stats. 1988,
Ch. 418.)
66002. (a) Any local agency which levies a fee subject
to Section 66001 may adopt a capital improvement plan,
which shall
indicate the approximate location, size, time of availability,
and estimates of cost for all facilities or improvements
to be
financed with the fees.
(b) The capital improvement plan shall be adopted by,
and shall be annually updated by, a resolution of the
governing body
of the local agency adopted at a noticed public hearing.
Notice of the hearing shall be given pursuant to Section
65090. In
addition, mailed notice shall be given to any city or
county which may be significantly affected by the capital
improvement
plan. This notice shall be given no later than the date
the local agency notices the public hearing pursuant
to Section 65090.
The information in the notice shall be not less than
the information contained in the notice of public hearing
and shall be given
by first-class mail or personal delivery.
(c) "Facility" or "improvement,"
as used in this section, means any of the following:
(1) Public buildings, including schools and related
facilities; provided that school facilities shall not
be included if Senate
Bill 97 of the 1987-88 Regular Session is enacted and
becomes effective on or before January 1, 1988.
(2) Facilities for the storage, treatment, and distribution
of nonagricultural water.
(3) Facilities for the collection, treatment, reclamation,
and disposal of sewage.
(4) Facilities for the collection and disposal of storm
waters and for flood control purposes.
(5) Facilities for the generation of electricity and
the distribution of gas and electricity.
(6) Transportation and transit facilities, including
but not limited to streets and supporting improvements,
roads, overpasses,
bridges, harbors, ports, airports, and related facilities.
(7) Parks and recreation facilities.
(8) Any other capital project identified in the capital
facilities plan adopted pursuant to Section 66002.
(Added by Stats. 1987, Ch. 927.)
66003. Sections 66001 and 66002 do not apply to a fee
imposed pursuant to a reimbursement agreement by and
between a local
agency and a property owner or developer for that portion
of the cost of a public facility paid by the property
owner or
developer which exceeds the need for the public facility
attributable to and reasonably related to the developments.
This
chapter shall become operative on January 1, 1989.
(Added by Stats. 1987, Ch. 927; Amended by Stats. 1988,
Ch. 418; Amended by Stats. 1989, Ch. 170.)
66004. The establishment or increase of any fee pursuant
to this chapter shall be subject to the requirements
of Section 66018.
(Added by Stats. 1988, Ch. 418; Amended by Stats. 1990,
Ch. 1572.)
66005. (a) When a local agency imposes any fee or exaction
as a condition of approval of a proposed development,
as defined by
Section 65927, or development project, as defined by
Section 65928, those fees or exactions shall not exceed
the estimated
reasonable cost of providing the service or facility
for which the fee or exaction is imposed.
(b) This section does not apply to fees or monetary
exactions expressly authorized to be imposed under
Sections 66475.1
and 66477.
(c) It is the intent of the Legislature in adding this
section to codify existing constitutional and decisional
law with respect to
the imposition of development fees and monetary exactions
on developments by local agencies. This section is
declaratory of
existing law and shall not be construed or interpreted
as creating new law or as modifying or changing existing
law.
(Added by Stats. 1986, Ch. 1203, Formerly 65959, Renumbered
and Amended by Stats. 1988, Ch. 418.)
66006. (a) If a local agency requires the payment of
a fee specified in subdivision (c) in connection with
the approval of a
development project, the local agency receiving the
fee shall deposit it with the other fees for the improvement
in a separate
capital facilities account or fund in a manner to avoid
any commingling of the fees with other revenues and
funds of the local
agency, except for temporary investments, and expend
those fees solely for the purpose for which the fee
was collected. Any
interest income earned by moneys in the capital facilities
account or fund shall also be deposited in that account
or fund and
shall be expended only for the purpose for which the
fee was originally collected.
(b) (1) For each separate account or fund established
pursuant to subdivision (a), the local agency shall,
within 60 days of
the close of each fiscal year, make available to the
public the beginning and ending balance for the fiscal
year and the fee,
interest, and other income and the amount of expenditure
by public facility and the amount of refunds made pursuant
to
subdivision (e) of Section 66001 and any allocations
pursuant to subdivision (f) of Section 66001 during
the fiscal year.
(2) The local agency shall review the information made
available to the public pursuant to paragraph (1) at
the next regularly
scheduled public meeting not less than 15 days after
this information is made available to the public, as
required by this
subdivision. Notice of the time and place of the meeting,
including the address where this information may be
reviewed, shall
be mailed, at least 15 days prior to the meeting, to
any interested party who files a written request with
the local agency for
mailed notice of the meeting. Any written request for
mailed notices shall be valid for one year from the
date on which it is
filed unless a renewal request is filed. Renewal requests
for mailed notices shall be filed on or before April
1 of each year. The
legislative body may establish a reasonable annual charge
for sending notices based on the estimated cost of
providing the
service.
(c) For purposes of this section, "fee" means
any fee imposed to provide for an improvement to be
constructed to serve a
development project, or which is a fee within the meaning
of subdivision (b) of Section 66000, and that is imposed
by the local
agency as a condition of approving the development project.
(d) Any person may request an audit of any local agency
fee or charge that is subject to Section 66023, including
fees or
charges of school districts, in accordance with that
section.
(e) The Legislature finds and declares that untimely
or improper allocation of development fees hinders
economic growth
and is, therefore, a matter of statewide interest and
concern. It is, therefore, the intent of the Legislature
that subdivision (a)
shall supersede all conflicting local laws and shall
apply in charter cities.
(Added by Stats. 1983, Ch. 921; Amended by Stats. 1987,
Ch. 1002; Formerly 53077, Amended and Renumbered by
Stats.
1988, Ch. 418; Amended by Stats. 1989, Ch. 170; Amended
by Stats. 1992, Ch. 169.)
66006.5. (a) A city or county which imposes an assessment,
fee, or charge, other than a tax, for transportation
purposes may, by
ordinance, prescribe conditions and procedures allowing
real property which is needed by the city or county
for local
transportation purposes, or by the state for transportation
projects which will not receive any federal funds,
to be donated by
the obligor in satisfaction or partial satisfaction
of the assessment, fee, or charge.
(b) To facilitate the implementation of subdivision
(a), the Department of Transportation shall do all
of the following:
(1) Give priority to the refinement, modification, and
enhancement of procedures and policies dealing with
right-of-way
donations in order to encourage and facilitate those
donations.
(2) Reduce or simplify paperwork requirements involving
right-of-way procurement.
(3) Increase communication and education efforts as
a means to solicit and encourage voluntary right-of-way
donations.
(4) Enhance communication and coordination with local
public entities through agreements of understanding
that address
state acceptance of right-of-way donations.
(Added by Stats. 1989, Ch. 857.)
Note: Stats. 1989 Ch. 857 also reads:
Sec. 1. (a) The Legislature makes the following findings
and declarations:
(1) Numerous areas throughout the state are experiencing
rapid expansion of residential, commercial, industrial,
and
business activities, which is producing increased traffic
levels.
(2) Many property owners have expressed a willingness
to donate real property or property rights for transportation
improvements to accommodate these increases in traffic.
(3) The cost of right-of-way acquisition is often a
significant and, in some cases, even a prohibitive
cost element in many
transportation improvement projects.
(4) The voluntary donation of right-of-way can result
in direct benefits to property owners, developers and
the community at
large, and can greatly assist in reducing the costs
associated with transportation improvement projects.
(5) It is in the best interest and welfare of the citizens
of California for the state and counties and cities
to actively foster
donations of right-of-way for transportation purposes.
(b) It is the intention of the Legislature, through
the enactment of this act, to encourage and facilitate
donations of right-of-
way by willing donors in all areas where transportation
improvements are to be made.
66007. (a) Except as otherwise provided in subdivision
(b), any local agency which imposes any fees or charges
on a residential
development for the construction of public improvements
or facilities shall not require the payment of those
fees or charges,
notwithstanding any other provision of law, until the
date of the final inspection, or the date the certificate
of occupancy is
issued, whichever occurs first. However, utility service
fees may be collected at the time an application for
utility service is
received. If the residential development contains more
than one dwelling, the local agency may determine whether
the fees or
charges shall be paid on a pro rata basis for each dwelling
when it receives its final inspection or certificate
of occupancy,
whichever occurs first; on a pro rata basis when a certain
percentage of the dwellings have received their final
inspection or
certificate of occupancy, whichever occurs first; or
on a lump-sum basis when the first dwelling in the
development receives its
final inspection or certificate of occupancy, whichever
occurs first.
(b) Notwithstanding subdivision (a), the local agency
may require the payment of those fees or charges at
an earlier time if
(1) the local agency determines that the fees or charges
will be collected for public improvements or facilities
for which an
account has been established and funds appropriated
and for which the local agency has adopted a proposed
construction
schedule or plan prior to final inspection or issuance
of the certificate of occupancy or (2) the fees or
charges are to reimburse
the local agency for expenditures previously made. "Appropriated,"
as used in this subdivision, means authorization by
the
governing body of the local agency for which the fee
is collected to make expenditures and incur obligations
for specific
purposes.
(c) (1) If any fee or charge specified in subdivision
(a) is not fully paid prior to issuance of a building
permit for construction
of any portion of the residential development encumbered
thereby, the local agency issuing the building permit
may require the
property owner, or lessee if the lessee's interest appears
of record, as a condition of issuance of the building
permit, to execute
a contract to pay the fee or charge, or applicable portion
thereof, within the time specified in subdivision (a).
If the fee or
charge is prorated pursuant to subdivision (a), the
obligation under the contract shall be similarly prorated.
(2) The obligation to pay the fee or charge shall inure
to the benefit of, and be enforceable by, the local
agency that imposed
the fee or charge, regardless of whether it is a party
to the contract. The contract shall contain a legal
description of the
property affected, shall be recorded in the office of
the county recorder of the county and, from the date
of recordation, shall
constitute a lien for the payment of the fee or charge,
which shall be enforceable against successors in interest
to the property
owner or lessee at the time of issuance of the building
permit. The contract shall be recorded in the grantor-grantee
index in the
name of the public agency issuing the building permit
as grantee and in the name of the property owner or
lessee as grantor.
The local agency shall record a release of the obligation,
containing a legal description of the property, in
the event the
obligation is paid in full, or a partial release in
the event the fee or charge is prorated pursuant to
subdivision (a).
(3) The contract may require the property owner or lessee
to provide appropriate notification of the opening
of any escrow
for the sale of the property for which the building
permit was issued and to provide in the escrow instructions
that the fee or
charge be paid to the local agency imposing the same
from the sale proceeds in escrow prior to disbursing
proceeds to the
seller.
(d) This section applies only to fees collected by a
local agency to fund the construction of public improvements
or facilities.
It does not apply to fees collected to cover the cost
of code enforcement or inspection services, or to other
fees collected to pay
for the cost of enforcement of local ordinances or state
law.
(e) "Final inspection" or "certificate
of occupancy," as used in this section, have the
same meaning as described in Sections
305 and 307 of the Uniform Building Code, International
Conference of Building Officials, 1985 Edition.
(f) Methods of complying with the requirement in subdivision
(b) that a proposed construction schedule or plan be
adopted,
include, but are not limited to, (1) the adoption of
the capital improvement plan described in Section 66002,
or (2) the
submittal of a five-year plan for construction and rehabilitation
of school facilities pursuant to subdivision (c) of
Section
17717.5 of the Education Code.
(Added by Stats. 1986, Ch. 685; Amended by Stats. 1987,
Ch. 1184; Formerly 53077.5, Amended and Renumbered
by Stats.
1988, Ch. 912; Amended by Stats. 1989, Ch. 1217; Amended
by Stats. 1992, Ch. 231.)
66008. (Repealed by Stats. 1990, Ch. 1572.)
66009. (Repealed by Stats. 1990, Ch. 1572.)