Developer Fees

Developer fees are fees that are paid by property owners and developers to school districts to mitigate the impact created on school district facilities by new development within a school district's boundaries. Fees are typically paid to the school district as a condition of a property developer or owner obtaining a building permit from the city or county for a construction project. School districts have been authorized by law since January 1, 1987, to impose developer fees, but the laws have changed over time as a result of litigation, state bond measures, legislation and other events. However, the basic propositions that fees may only be collected if the need for additional or improved facilities has been "justified," and that fees may only be expended to accommodate growth generated from new development, remains true.

Education Code 17620 et seq. authorizes the collection developer fees; Government Code 65995 et seq. establishes the types of fees and rates; Government Code 66000 sets the process for justifying fees and appealing or challenging fees.

Fees are collected at the time the building permit is obtained from the city or the county. As part of that process each district imposing developer fees should prepare a document called "Certificate of Compliance," to issue to a fee payer. The certificate should reflect the number of square feet and type of construction upon which fees are to be paid. The city or county building department is responsible for providing square footage calculations. The builder is directed to pay the district.

Developer fees must be paid with respect to:

1. New commercial and industrial construction (not including square footage for existing site construction when building permit was first issued);
2. New residential construction;
3. "Other" residential construction when there is an increase of over 500 square feet in assessable space;
4. Location, installation, or occupancy of manufactured homes and mobile homes; and
5. Mini Storage

Generally, the city or county is responsible to provide a calculation of the total square footage of a residential or commercial project for purposes of the payment of developer fees and must do so in accordance with building department standards. However, with respect to residential construction, fees are only charged per square foot of "assessable space", and with respect to commercial/industrial construction, fees are only charged per square foot of "chargeable covered and enclosed space."

Senior Citizen Housing: Government Codes 65995.1 and 65995.2 provide that school districts may only charge the Commercial/Industrial Fee for qualified senior citizen housing that has at least 35 dwelling units. School districts should require proof from the developer that project qualifies as senior citizen housing in the form of CC&R's.

Church and Religious Organizations: Pursuant to Government Code 65995(d), school districts may not levy developer fees on any facility used exclusively for religious purposes and exempt from property taxation under California Law.

Private Full-Time Day School: A private full-time day school offers instruction in the several branches of study required to be taught in the public schools and attendance is required to be taken. The District may request a copy of the affidavit that private schools are required to file pursuant to Education Code 33190.

Government Agencies.

Residential Additions of 500 or Less Square Feet.

Reconstruction of a Structure Destroyed in a Disaster: The reconstruction of a structure destroyed as a result of a disaster is exempted from developer fees. However, the exemption does not apply if the square footage of the reconstructed structure exceeds the square footage of the structure that was destroyed.

The current per-square-foot developer fees are effective until further notice.

New Residential Construction: $5.17 (Effective 5/20/2024) per square foot for "assessable space" — defined as "habitable space within the perimeter of a residential structure, not including any carpet, walkway, garage, overhang, patio, detached accessory structure or similar area."

Additions to Residences: $5.17 (Effective 5/20/2024) per square foot for projects exceeding 500 square feet of assessable space. The fee applies to the total increase in square footage. There is no fee for residential additions of 500 square feet or less.

Mobile Homes: $5.17 (Effective 5/20/2024) per square foot for a mobile home placed on a new pad for which fees have not been previously paid.

Commercial/Industrial Construction: $0.81 (Effective 5/20/2024) per square foot covered and enclosed space.

Senior Housing: Senior housing developments, as defined by Civil Code 51.3, are charged the commercial fee ($0.81). Should the facility be converted to standard residential use, the balance of the fee would be payable at that time.

Mini Storage: $0.05 (Effective 5/20/2024) per square foot of chargeable covered and enclosed space.