Bill Text: CA AB2663 | 2023-2024 | Regular Session | Chaptered

California Assembly Bill 2663

Bill Title: Inclusionary housing: fees: reports.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2024-09-19 - Chaptered by Secretary of State - Chapter 276, Statutes of 2024. [AB2663 Detail]

Download: California-2023-AB2663-Chaptered.html

Assembly Bill No. 2663

CHAPTER 276

An act to add Section 65906.6 to the Government Code, relating to land use.

[ Approved by Governor September 19, 2024. Filed with Secretary of State September 19, 2024. ]

LEGISLATIVE COUNSEL'S DIGEST

AB 2663, Grayson. Inclusionary housing: fees: reports.

The Mitigation Fee Act, among other things, 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, as specified. The act requires a local agency, upon receipt of a fee subject to these provisions, to deposit, invest, account for, and expend the fees as specified. For the 5th fiscal year following the first deposit into the account of fund, and every 5 years thereafter, the act requires the local agency to make prescribed findings with respect to that portion of the account or fund remaining unexpended, whether committed or uncommitted, including demonstrating a reasonable relationship between the fee and the purpose for which it is charged.

The Planning and Zoning Law, among other things, authorizes the legislative body of a county or city to adopt ordinances to require, as a condition of development of residential rental units, that the development include a certain percentage of residential rental units affordable to, and occupied by, moderate-income, lower income, very low income, or extremely low income households or by persons and families of low or moderate income, as specified. Existing law establishes a process for the Department of Housing and Community Development to review certain types of these ordinances, subject to specified standards and procedures.

This bill, commencing on January 1, 2026, would require a local agency that collects inclusionary housing in-lieu fees and has an internet website to annually post on its internet website the amount of those fees collected in the previous year and whether those fees are intended to be used for a project, if any. The bill would define “inclusionary housing in-lieu fees” to mean fees imposed as an alternative means of compliance with an inclusionary housing requirement. The bill, commencing on January 1, 2026, and every 5 years thereafter, would require a local agency that collects inclusionary housing in-lieu fees to post on its internet website the amount of those fees collected in the past 5 years and the project those fees were spent on.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 65906.6 is added to the Government Code, to read:

65906.6.

(a) For the purpose of this section, the following definitions apply:

(1) “Inclusionary housing in-lieu fees” means fees imposed as an alternative means of compliance with an inclusionary housing requirement.

(2) “Local agency” means a county, city, whether general law or chartered, city and county, school district, special district, authority, agency, any other municipal public corporation or district, or other political subdivision of the state.

(b) Commencing on January 1, 2026, a local agency that collects inclusionary housing in-lieu fees and has an internet website shall annually post on its internet website both of the following:

(1) The amount of inclusionary housing in-lieu fees collected in the previous year.

(2) Whether the inclusionary housing in-lieu fees are intended to be used for a project, if any.

(c) Commencing on January 1, 2026, and every five years thereafter, a local agency that collects inclusionary housing in-lieu fees shall post on its internet website both of the following:

(1) The amount of inclusionary housing in-lieu fees collected in the past five years.

(2) The projects that the inclusionary housing in-lieu fees were spent on.

SEC. 2.

The Legislature finds and declares that ensuring transparency of inclusionary housing in-lieu fees throughout the state is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act adding Section 65906.6 to the Government Code applies to all cities, including charter cities.