State Allocation Board Approves Biennial Developer Fee Increase

The State Allocation Board, at its January 22, 2014 meeting, approved an increase in “level 1” developer fees from $3.20 to $3.36 per square foot on new residential development and residential additions of over 500 square feet, and from $0.51 to $0.54 per square foot on new commercial and industrial development.

School districts may implement these higher fees immediately provided that they have an appropriate fee justification report in place. Your existing justification report may be adequate or may need to be updated. Implementing the higher fees requires passing a resolution, preceded by publishing a notice twice in a 10-day period, posting the notice, and mailing the notice to anyone who has specifically requested notice. The higher fees go into effect 60 days after the resolution is passed, unless urgency resolutions are used to reduce the waiting period. The county and any cities having jurisdiction in your district should be notified of the increase so that they have current information for building permit applicants.

Non-unified districts should adjust their allocation agreement for sharing the total fee amounts.

As always, fee revenues are to be placed in an account to be used for facilities construction and modernization, as well as costs of justifying and collecting the fees. Those districts that have the higher “level 2” fees on new residential development should still increase their level 1 fees to capture revenues from projects not subject to level 2 fees.

If you have any questions concerning developer fees, justification reports, or the process to increase fees, please contact our office.

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