The Chino Hills City Council on Oct. 28 adopted a package of ordinances and a development impact fee (DIF) nexus study that update fees for general city facilities, traffic, parks and recreation (Quimby and in‑lieu fees), and a new fire facilities fee intended to help fund Fire Station 68 and other apparatus.

The study, prepared by Willdan Financial Services and presented by the city, used a growth forecast to 2045 — projecting roughly 13,600 new residents — and moved residential fees to a per‑square‑foot basis to comply with AB 602. Staff said the fee update was intended to make sure new development pays its share of infrastructure needed to serve future residents and to protect existing residents from shouldering growth costs.

Fire facilities fee and background: City staff and the city manager explained the fire facilities fee in detail because the city had previously contributed about $8 million toward Fire Station 68 constructed by the fire district. The new fee is designed to recover the city’s contribution and fund additional fire equipment and facilities needed for growth. Council asked for a clear assurance that equipment funded through the fee would be stationed in Chino Hills; staff agreed to clarify the location requirement when finalizing agreements.

Public comments and industry response: Builders and the Building Industry Association (BIA) urged the council to consider exemptions and a phase‑in. The BIA requested either a time‑limited grandfathering for projects with approved tentative maps (proposed deadline was final map by Nov. 1, 2028) or a multi‑year phase‑in (25% in year one, 50% year two, 75% year three, 100% in year four). Lennar said many buyers are first‑time homebuyers and that sharp fee increases would worsen affordability.

Examples and scale of increases: Staff presented prototype comparisons showing sizeable increases for some permit examples: a single‑family subdivision example showed approximately $18,425 in additional fees under the new schedule; a custom home example showed about $16,857 more; a commercial example showed about $23,965 more; and a 28‑unit multifamily example increased roughly $17,600. The BIA characterized the single‑family increase as roughly 449% and the multifamily example as about 209% based on the city’s comparisons and requested more analysis of impacts to housing affordability.

Council action and direction: The council voted 5‑0 to adopt the DIF nexus study, amend Chino Hills Municipal Code Chapter 3.4 to implement the new fees, adopt an ordinance adding Quimby and park dedications/fees, and adopt a resolution adjusting the Quimby and in‑lieu fee schedule. Council also directed staff to return at a subsequent meeting with detailed options for grandfathering current tentative maps and for phasing the park/Quimby fee increases. Several council members signaled support for a shorter grandfathering window than the builders’ requested four years (some favored two or three years). Staff estimated that grandfathering all currently approved tentative maps through a late‑2028 cutoff could forgo roughly $8–9 million in fee revenue.

Why it matters: The fees will change the cost structure for new housing and commercial development in Chino Hills; staff said the updates reflect current construction and land values and are legally defensible under state law. Council members balanced the need to fund parks, traffic and public safety facilities against concerns about housing affordability and asked for implementation flexibility.

Next steps: The ordinances were adopted; staff will return with detailed grandfathering and phase‑in language for council consideration and with clarifications about use and location requirements for fire apparatus purchased with the new fire facilities fee.