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Council delays 2026 and 2028 development-impact fee increases to soften costs for projects
Summary
Moreno Valley’s council approved staff’s recommendation to defer automatic CPI-indexed increases in the city’s 2026 and 2028 development impact fee schedule, effectively moving the 2026 increases to 2028 and the 2028 increases to 2030.
The City Council voted unanimously on April 15 to defer scheduled automatic increases to the city’s Development Impact Fees (DIFs). Staff recommended pushing the 2026 and 2028 CPI-indexed increases to later dates to reduce near-term costs for development projects.
Community Development Director Angelica Frausalupo explained the rationale and legal basis: the 2024 DIF schedule, adopted after a nexus study required by Assembly Bill 602, included automatic adjustments intended to account for construction-cost escalation. “In order to soften the impacts of any adjustments to the City's current DIFs, staff recommends that the DIF fees for 2026 and 2028 be deferred,” Frausalupo told the council.
Under staff’s proposal, the increase scheduled for 01/01/2026 will be applied instead on 01/01/2028; likewise the 01/01/2028 adjustment would move to 01/01/2030. Staff said the adjustments were intended to balance the city’s need to maintain fee-based infrastructure funding with concerns about affordability and project feasibility for developers.
Council members asked questions; no members of the public spoke on the item. The council approved the staff recommendation unanimously. Staff implemented the motion as a resolution to amend the schedule of automatic adjustments; the city will continue monitoring construction-cost trends and will bring future updates as needed.
Key details: DIF nexus study completed in 2024; automatic adjustment dates previously set at 1/1/2026, 1/1/2028 and 1/1/2030; approved deferral shifts 2026 adjustments to 2028 and 2028 adjustments to 2030; action taken at the April 15 meeting.
