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. Existing law requires a local agency that imposes a fee on a housing development for the purpose of mitigating vehicular traffic impacts to set the rate for that fee, if the housing development satisfies all of certain prescribed characteristics, to reflect a lower rate of automobile trip generation associated with such housing developments in comparison with housing developments without the prescribed characteristics, unless the local agency adopts findings after a public hearing establishing that the housing development, even with those characteristics, would not generate fewer automobile trips than a housing development without those characteristics.
This bill would require those findings to be supported by substantial evidence in the record before or as part of the housing development project approval process.
Existing law specifies one of those prescribed characteristics described above is that the housing development provides either the minimum number of parking spaces required by the local ordinance, or no more than one onsite parking space for zero- to 2-bedroom units, and 2 onsite parking spaces for 3 or more bedroom units, whichever is less. Under existing law, another prescribed characteristic is that convenience retail uses, as specified, are located within 12 mile of the housing development.
This bill would revise the characteristic relating to parking spaces, to instead, specify that the housing development provides no more than one onsite parking space for zero- to 2-bedroom units, and 2 onsite parking spaces for 3 or more bedroom units. The bill would eliminate the characteristic related to convenience retail uses, and instead would add a characteristic that the housing development is located within 12 mile from 3 or more specified locations, including, among other locations, a supermarket or grocery store, a pharmacy or drugstore, or a restaurant, as defined.
Existing law authorizes a local agency, if a housing development does not satisfy all the prescribed characteristics, to charge a fee that is proportional to the estimated rate of automobile trip generation associated with the housing development.
This bill would eliminate that express authorization.
By imposing a mandate on local agencies that approve housing development projects with regard to impact fees, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Statutes affected:
SB 358: 66005.1 GOV
02/12/25 - Introduced: 66005.1 GOV
05/01/25 - Amended Senate: 66005.1 GOV
05/27/25 - Amended Senate: 66005.1 GOV
07/07/25 - Amended Assembly: 66005.1 GOV