Council defers vote on updated development impact fees after questions about affordability and truck impacts

The Hemet City Council heard a technical presentation and lengthy discussion about modernizing development impact fees required by AB 602, but postponed taking a vote to allow follow-up research and community input.

Gregory Brown of Revenue and Cost Specialists walked the council through the updated DIFF nexus study, explaining the shift from older flat fees to per-square-foot calculations as required by AB 602. Brown illustrated sample checks developers would write and said the study produces a single-family maximum justifiable DIFF of about $16,980 for a typical 2,300 sq ft home; he also showed how adding regional fees and school fees could push total per-home charges near $50,000 in some service areas.

Brown noted legal changes since 2006 require more conservative allocations (reductions for certain street and general government allocations) and emphasized the study sets maximum justifiable ceilings; council retains discretion to set lower fees or phase them in. “Per AB602 though, the fees will now have to be updated every 8 years,” Brown said.

Council members expressed concern that higher impact fees could reduce housing affordability and discussed whether the fee methodology should better account for heavy-truck wear (equivalent single-axle loads) rather than treating all trips the same. Staff agreed to follow up with technical analyses and invited additional public comments; the council left the hearing open to June 9.

No final adoption vote was taken Wednesday.