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 these fees can be imposed by land use permitting authorities. Specifically, the bill mandates that any fees must be reasonably proportional to the impact of the development, as determined by an exaction and mitigation nexus study. It also specifies that the maximum fee cannot exceed a certain percentage of the total construction costs and exempts certain square footage from being charged.

Additionally, the bill introduces 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 address disputes over the fees and provides a mechanism 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