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.
At the August 18, 2022 Board Meeting, an increase in Statutory School Fees imposed on new residential and commercial/industrial construction pursuant to Education Code 17620 and Government Code 65995 was approved and goes into effect October 17, 2022.
As of October 17, 2022, fees are as follows:
- New Residential Development and Room Additions in excess of 500 square feet: $4.79 per square foot
- Commercial/Industrial Construction: $0.78 per square foot
2022 School Fee Justification Study
Pursuant to Education Code 17620, school districts are authorized to levy fees on new residential and commercial/industrial construction to mitigate the impact of new development on school facilities. These fees are generally referred to as basic statutory fees or Level 1 fees. By statute, the developer fees are capped. The caps are adjusted every two years by the State Allocation Board to account for inflation. In January 2022, the developer fee cap for residential development increased by $0.71 to $4.79 per square foot. The cap for commercial/industrial construction was increased by $0.12 to $0.78 per square foot.
The following Developer Fee Justification Study has been conducted by the District’s consultant, Koppel & Gruber Public Finance, demonstrating the relationship between new residential and commercial/industrial construction and the District’s need for school facilities construction and reconstruction. This relationship is shown in compliance with the requirements for the collection of Level 1 fees.
Government Code 66016 requires the District to hold a public hearing regarding the imposition of developer fees as part of a regularly scheduled Board of Education meeting prior to adopting or increasing such fees. This public hearing will be held on August 18, 2022. With the increase approved, developer fees increase on October 17, 2022.