Existing law, the Mitigation Fee Act, imposes various requirements with respect to the establishment, increase, or imposition of a fee by a local agency as a condition of approval of a development project, including requiring the local agency to identify the use to which the fee is to be put and determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed. Existing law also requires a local agency, upon receipt of a fee subject to these provisions, to deposit, invest, account for, and expend the fees as specified.

This bill would additionally require any fee established, increased, or imposed to be based on the net impact on the need for the public facility being funded by the fee and account for whether the development project is removing or replacing an existing use or a previous use that existed at the time the fee was established, as specified. The bill would require, in this redevelopment scenario, the local agency to provide a fee credit or otherwise reduce the fee in an amount proportionate to the impact caused by the use that is being removed or replaced.