AB1820

Mandatory upfront clarity on housing development fees

State: California

Status: Enacted ✅

Formal Title: An act to amend Sections 65940.1 and 65941.1 of and to add Section 65943.1 to the Government Code relating to housing.

Summary: Requires cities to provide an estimate of development fees at the time of building permit application, promoting fee transparency and predictability for housing projects. AB 1820 ensures that builders have a clear understanding of the financial requirements from the outset, aiming to reduce unexpected costs that can delay or jeopardize housing developments. The legislation mandates that an itemized list and total sum of all fees and exactions be provided within 10 days of a preliminary application, and again upon final approval of a housing development project. It addresses the issue of high and unpredictable impact fees by ensuring that developers are informed of their fee obligations early in the project planning process.

Main sponsors: Pilar Schiavo

Legislative text: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB1820