SB 937
Home builders in California face a barrage of financial challenges, from exorbitant local impact fees to high interest rates and rising labor and materials costs. Local impact fees alone 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 local development and 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 out of Senate Housing with a 9-0 vote on April 16, 2024. It will be heard in the Senate Appropriations Committee on April 29, 2024.
Authors: Wiener (D, SD 11)
Co-Authors: Grayson (D, AD 15)
Co-Sponsors: California YIMBY, California Housing Consortium, Housing Action Coalition
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