AB 2144
The fees charged by local jurisdictions in California for new homes are often unpredictable, and can vary widely by city and by project. This lack of transparency – and the risk of facing sudden, unbudgeted fees for new homes – can slow or even block the construction of new housing.
Development fees, also known as “impact fees,” can reach more than $150,000 per home – but builders often don’t know how these fees add up before they begin the development process.
The current lack of transparency around these fees can slow and discourage the development of new homes.
AB 1483 (Grayson), enacted in 2019, requires local governments to make information on housing impact fees more accessible. This includes requiring jurisdictions to post information such as impact fee schedules and impact fee “nexus studies,” which break down the total cost of construction (including fees), on their website. The goal was to ensure builders have a comprehensive understanding of the various fees that cities charge for new homes.
So far, many cities have not complied with AB 1483. Home builders still face a broad lack of fee transparency, making it difficult or impossible to create accurate budgets for their projects.
AB 2144 will reduce uncertainty around new home building by requiring local governments to provide evidence in their Annual Progress Reports, required by the state’s Regional Housing Needs Assessment, that they are complying with existing laws regarding transparency in impact fees.
Updates: AB 2144 has been referred to Assembly Housing and Community Development and will be heard on March 20, 2024.
Author: Grayson (D, AD 15)
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