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Staff to analyze AB 179 trailer-bill effects on impact fees and city projects
Summary
City governmental affairs staff warned that AB 179 includes language that could reduce award amounts for projects by the value of impact fees; staff will analyze how often Sacramento might face reduced funding and the implications for local infrastructure.
During a Law and Legislation Committee briefing, Consuelo Hernandez said AB 179 (the housing trailer bill) includes provisions that affect local impact fees for projects that receive state funding. "Instead, they're funding awards will be reduced by the amount of impact fees that they're charged for the project," Hernandez said, explaining that the governor's final package substituted reductions in award amounts rather than mandated fee waivers.
Hernandez said the city will need to analyze how often it would be affected and the budgetary tradeoffs because impact fees typically fund infrastructure and other services. She told the committee staff would review how AB 179 could affect city-funded infrastructure and the net fiscal impact of any reductions in state awards.
