Residential projects: fees and charges.

Senator Stern's proposal to modify California's Mitigation Fee Act revises when local agencies may collect fees for residential development projects. The measure allows agencies to collect utility service charges when applications are received, provided the charges do not exceed actual connection costs. It also expands the definition of public safety facilities eligible for early fee collection to include emergency-purposed parkland and recreational spaces identified in local safety plans.

The bill maintains existing protections that generally prohibit requiring payment of development fees until final inspection or occupancy certification. However, it creates additional circumstances where earlier collection is permitted, such as when fees will reimburse previous expenditures or fund improvements with established accounts and appropriated money. For designated affordable housing developments where at least 49% of units serve lower-income households, developers may post performance bonds or letters of credit to guarantee later payment.

Local agencies gain new enforcement tools, including the ability to record fee payment contracts as property liens and collect unpaid amounts through county tax assessment procedures. The measure requires agencies to post model contracts online and establishes specific reporting deadlines for building officials regarding unpaid fees. These provisions apply to various qualifying residential projects, from developments with 100% affordable units to those approved under density bonus programs.