AB 602

Nickname: Impact Fee + Nexus Studies

Sponsor: Asm Grayson

Year: 2021

Bill Text

What is it?

AB 602 reforms how cities collect impact fees so smaller units are not unfairly punished with unnecessary high cost by tying impact fees to nexus studies and applying them by their impact by square footage rather than by unit count. Jurisdictions would also be required to publish their impact fee scheduled online.


AB 602 in a nutshell prevents outrageous fees that could possibly deny housing. It’s like when you buy a car for a price tag of $20,000 and then they calculate all these fees and taxes and the car ends up being nearly $30,000. Well building housing is the same. Impact fees can add up to over $100,000 to the cost of single apartment homes for new housing in a way that smaller units are not unfairly punished with high costs. The large amount of unspecified fees can halt housing development altogether due to the cost outweighing what renters and home buyers can afford.

To learn more check out this story!