The bill establishes new regulations regarding the imposition of exaction or mitigation fees for affordable or workforce housing in the context of residential and commercial development projects. It creates definitions for key terms, such as "affordable or workforce housing exaction or mitigation fee," and outlines the conditions under which land use permitting authorities can impose these fees. Specifically, the bill mandates that any fees must be reasonably proportional to the impact of the proposed development, as determined by an exaction and mitigation nexus study. Additionally, it sets limits on the maximum fees that can be charged and specifies that no fees can be imposed on agricultural activities.

Furthermore, the bill outlines a process for applicants to review and appeal the fees imposed. It requires land use permitting authorities to provide written notice of the fees at least 30 days prior to their imposition and allows applicants to request an individualized determination of the fee amount. If the authority fails to deliver this determination within 60 days, the fee is waived. The bill also allows for public hearings to dispute the fees and provides a pathway for judicial review of the fees' validity. The new provisions will take effect on July 1, 2025, and apply to all permit applications submitted after that date.

Statutes affected:
Introduced: 15-1-103, 18-2-101