SB 1210
When a new housing project is being completed, the developer must pay fees to cover the cost of connecting to local utilities, like water, sewer, gas, and electric. These utility fees are a normal part of the homebuilding process. But in California, utilities often do not disclose the total cost of connection fees – and sometimes raise them arbitrarily. This uncertainty around cost can inhibit new construction, while also driving up the cost of new homes.
Utility connection fees are charged by the utility provider. Whether the project is a small ADU in a backyard, or a large apartment built by a multifamily developer, connection fees are charged by the unit; must be paid all at once; and can reach tens of thousands of dollars. The total amount of these fees is often not disclosed up front, leaving the builder guessing about costs.
SB 1210 will help to eliminate uncertainty around utility connection fees by requiring that fees are clear, transparent, and posted online.
Updates: SB 1210 passed Senate Energy, Utilities and Communications Committee on April 2 with amendments. It is set to be heard in Senate Local Government.
Author: Skinner (D, SD 9)
Sponsor: Housing Action Coalition
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