Governor Newsom Signs Bill to Make Local Housing Fees Transparent

SB 1014 Requires Cities to Disclose All Local Requirements

“Home builders deserve to know up front what their projects will cost”

Los Angeles – Today, Governor Gavin Newsom signed into law SB 1014, a bill by Sen. Tim Grayson (Concord) that requires local jurisdictions to disclose all infrastructure fees and requirements to home builders within 30 days of their permit applications for new housing. 

“The cost of infrastructure like sidewalks and sewers is not mysterious, but many California cities treat it that way,” said Brian Hanlon, CEO of California YIMBY. “By signing SB 1014 into law, Governor Newsom has helped to ensure that cities manage and disclose their infrastructure improvement requirements with the same rigor builders use with their budgets for building new homes. Thanks to Governor Newsom and Senator Tim Grayson for their leadership in making homes more affordable for hard-working Californians.”

Current law doesn’t require cities to disclose all local requirements for infrastructure (such as sidewalks and sewers) and their costs when builders apply to build housing. Builders can request estimates, but local governments have no obligation to provide or honor them. These infrastructure requirements often appear as costly surprises later in the construction process. The unpredictability makes financing new homes harder, which limits homebuilding.

SB 1014 requires local governments to disclose all infrastructure requirements and a good faith estimate of the costs within 30 days of a housing application. The bill also prohibits local governments from adding new requirements more than 30 days after a building permit application, unless they prove it’s necessary to avoid a specific, negative impact on public health or safety. This gives builders the complete cost information needed to create accurate budgets and secure financing.