Frequently Asked Questions

Q. Can I collect the developer fees when escrow closes?

A. Normally a District collects fees when the permit is pulled. This way the unit cannot be built unless the fees are paid. However, a district can choose instead to collect when escrow closes which is basically at occupancy. This is risky as there is not an easy verification process and usually the funds are needed by the District well in advance of occupancy of the new home.

Q. Do I have to charge the maximum fee shown in the study?

A. No. The study (either Level 1 or Level 2) simply states the maximum fee the District can charge. The School Board may decide to implement a lower fee.

Q. What are the public notice requirements for approving developer fees?

A. When implementing or increasing Level 1 fees, there must be a public notice at least 14 days before the board meeting. For Level 2 fees, the requirement is a 30 day public notice. The notice must be posted, and when possible published in a local paper.

Q. What are the statutes that authorize the collection of developer fees?

A.

1. Education Code Section 17620 et seq. authorizes the collection of developer fees.

2. Government Code section 65995 et seq. establishes the types of fees and rates.

   Currently, the amount is $2.97 per square foot for new residential construction and $0.47 per square foot of new commercial construction.

3. Government Code Section 66000 sets the process for justifying fees and appealing or challenging fees.

Q. When are the fees collected?

A. Fees are collected at the time the building permit is obtained from the city or the county. As part of that process, each district that imposes developer fees should prepare a document called a "Certificate of Compliance" which is issued to a fee payer. The "Certificate of Compliance" should reflect the number of square feet and type of construction upon which fees are to be paid. The city or county building department is responsible for providing square footage calculations. The builder is directed to pay the district or may pay the city or county, if the latter collects fees on the district's behalf.

Q. Where do the funds go?

A. A separate fund needs to be established which will be used to track the developer fees. There is an annual requirement to review the income and use of the developer fees. The fees collected must be used within five years or they are required to be returned to the builder/homeowner.

Q. What can the fees be used for?

A. A School District can use the revenue collected on residential and commercial/industrial construction for the purposes listed below:

1. Purchase or lease of interim school facilities to house students generated by new construction pending the construction of permanent facilities

2. Purchase or lease of land for school facilities for such students

3. School facilities for such students, including:

   • Construction
   • Modernization/reconstruction
   • Architectural and engineering costs
   • Permits and plan checking
   • Testing and inspection
   • Furniture for use in the new facilities

4. Legal and other administrative costs related to the provision of such new facilities

5. Administration of the collection of, and justification for, such fees, and

6. Any other purpose arising from the process of providing facilities for students generated by new development.

Although the majority of the items are related to new facilities, the fees are also used for modernization projects and facility planning efforts including Facility Master Plans, Justification Studies, and consultant fees for processing the State Building project applications.

Q. What exemptions exist for school fees?

A.

1. Senior Citizen Housing: Government Code Sections 65995.1 and 65995.2 provides that school districts may only charge the Commercial/Industrial Fee for qualified senior citizen housing. School districts should require proof from the developer that the project qualifies as senior citizen housing in the form of CC&Rs.

2. Church and Religious Organizations: Pursuant to Government Code Section 65995(d), school districts may not levy developer fees on any facility used exclusively for religious purposes and exempt from property taxation under California law.

3. Private Full-Time Day School: A private full-time day school which offers instruction in the several branches of study required to be taught in the public schools and attendance is required to be taken. The district may request a copy of the affidavit that private schools are required to file pursuant to Education Code Section 33190.

4. Government Agencies.

5. Residential Additions Less than 500 Square Feet.

6. Reconstruction of a Structure Destroyed in a Disaster: The reconstruction of a structure destroyed as a result of a disaster is exempted from developer fees. However, the exemption does not apply if the square footage of the reconstructed structure exceeds the square footage of the structure that was destroyed.