Sponsored Legislation

SB 937

Status: Passed Committee

Home builders in California face a barrage of financial challenges, from exorbitant local development fees to high interest rates and rising labor and materials costs. Local development fees, including impact fees, services fees, and in-lieu fees, can reach $150,000 per home or higher. In many cases, the uncertainty around construction costs is enough to severely delay or even cancel much-needed housing projects. 

SB 937 will ensure cities can continue to make progress towards their housing goals in the face of recent cost increases. SB 937 allows home builders to delay the payment of certain impact fees until a certificate of occupancy is issued for their project, which will lower financing costs and allow more projects to pencil.

SB 937 will also provide developers struggling to pay increasing construction costs more time to gather funds and wait for inflation rates to go down by extending the expiration date for entitlements issued prior to Jan. 1, 2024 and set to expire on or before Dec. 31, 2025 by 18 months.

Updates

SB 937 passed the Senate Floor on May 20, 2024 with a 36-0 vote. It passed the Assembly Local Government Committee on 6/12/2024 and the Assembly Housing and Community Development Committee on 6/26/24. It now awaits action in the Assembly Appropriations Committee.

Authors

Wiener (D, SD 11)

Co-Authors

Grayson (D, AD 15)

Co-Sponsors

California YIMBY, California Housing Consortium, Housing Action Coalition

Resources

Press Coverage

Support SB 937

Make it easier to build homes!

Ensures cities can continue to make progress towards their housing goals in the face of recent cost increases by allowing builders to delay the payment of local development and impact fees until a C of O is issued for their project, which will lower financing costs and allow more projects to pencil.

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