AB 874: Mitigation Fee Act: development impact fees: qualified residential ownership and qualified rental projects.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law, the Mitigation Fee Act, imposes certain requirements on a local agency that imposes a fee as a condition of approval of a development project that is imposed to provide for an improvement to be constructed to serve the development project, or a fee for public improvements, as specified. The act also regulates fees for development projects and fees for specific purposes, including water and sewer connection fees, among others. The act, among other things, requires local agencies to comply with various conditions when imposing fees, extractions, or charges as a condition of approval of a proposed development or development project. The act prohibits a local agency that imposes fees or charges on a residential development for the construction of public improvements or facilities from requiring the payment of those fees or charges until the date of the final inspection or the date the certificate of occupancy is issued, whichever occurs first, except for utility service fees, as provided.

This bill would require a local agency to provide a qualified residential rental project, as defined, with the option of either or both (1) development impact fees set at a rate of $0 or (2) a development impact fee deferral agreement loan, subject to certain requirements. The bill would also require a local agency to provide a qualified residential ownership project, as defined, with the option of either or both (1) development impact fees set at a rate of $0 or (2) a development impact fee deferral agreement loan for each income-qualified homebuyer, subject to certain requirements. The bill would define “development impact fee” for these purposes to mean a fee collected by a local agency to fund the construction of public improvements or facilities, with certain exceptions.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. February 2, 2026From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2. January 31, 2026Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
3. January 13, 2026In committee: Set, first hearing. Hearing canceled at the request of author.
4. January 8, 2026(Pending re-refer to Com. on L. GOV.)
5. January 8, 2026Assembly Rule 56 suspended. (Page 3717.)
6. January 5, 2026Re-referred to Coms. on H. & C.D. and L. GOV. pursuant to Assembly Rule 96.
7. January 5, 2026Re-referred to Com. on L. GOV.
8. January 5, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.
9. March 10, 2025Referred to Coms. on L. GOV. and H. & C.D.
10. February 20, 2025From printer. May be heard in committee March 22.
11. February 19, 2025Read first time. To print.