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Escondido Union ESD |  AR  7211  Facilities

Developer Fees   

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Level 1 Funding: Residential, Commercial, and Industrial Construction

Before taking action to establish, increase, or impose developer fees, the Board of Education shall conduct a fee justification study which: (Government Code 66001)

1. Identifies the purpose of the fee and the use to which the fee will be put

2. Determines a reasonable relationship between the fee's use and the type of development project for which the fee is imposed

3. Determines a reasonable relationship between the need for the public facility and the type of development project for which the fee is imposed

4. Determines a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributed to the development for which the fee is imposed

Level 1 Funding: Notice and Hearing Requirements

Before levying developer fees or prior to increasing an existing fee, the board shall schedule a public hearing. The superintendent or designee shall mail notice of the time and place of the meeting, including a general explanation of the matter to be considered and a statement that the required data are available, at least 14 days prior to the meeting to any interested party who has requested such information. Any written request for mailed notices shall be valid for one year from the date on which it is filed unless a renewal request is filed.

Renewal requests for mailed notices shall be filed on or before April 1 of each year. The district may charge a fee reasonably related to the cost of providing these materials. (Government Code 66016)

Information on the anticipated amount of fees; other available funds and funding sources; and the estimated cost of planning, land acquisition, and school construction shall be made available to the public at least ten days before the hearing. (Government Code 66016)

At the hearing, the board shall adopt a resolution for the levying of the developer fees. (Government Code 66016) The resolution shall set forth:

1. The purpose of the fee and the public improvement(s) that the fee will be used to finance (Government Code 66006)

2. The board's findings of reasonable relationship which justify the fees pursuant to Government Code 66001

3. The district's determination of either of the following conditions which allow collection of the fees at the time when building permits are issued: (Government Code 66007)

a. That the fees are to reimburse the district for previous expenditures

b. That the fees shall be collected for public improvements or facilities for which an account has been established, funds have been appropriated, and the district has adopted a proposed construction schedule or plan

Level 2 Funding: Residential Construction

In order to impose residential construction fees within the limits of Government Code 65995.5, the board shall: (Government Code 65995.5)

1. Make a timely application to the State Allocation Board for new construction funding for which it is eligible

2. Conduct and adopt a school facility needs analysis pursuant to Government Code 65995.6

3. Satisfy at least two of the requirements set forth in Government Code 65995.5 (b)(3)(A-D). (Government Code 65995.5)

Level 2 Funding: Notice and Hearing Requirements

At least 45 days prior to completion of the school facility needs analysis, the board shall notify and provide copies of the analysis to the planning commission or agency of the city or county with land use jurisdiction within the district. Upon request of either party, the board and city or county shall meet within 15 days following notification. (Government Code 65352.2)

(cf. 7131 - Relations with Local Agencies)

The board shall adopt the school facility needs analysis by resolution at a public hearing. (Government Code 65995.6)

This analysis may not be adopted until the analysis, in its final form, has been made available to the public for a period of not less than 30 days. Prior to its adoption, the public shall have the opportunity to review and comment on the analysis, and the board shall respond to written comments it receives regarding the analysis. (Government Code 65995.6)

During the period of public review, the analysis shall be provided to the local agency responsible for land use planning for its review and comment. (Government Code 65995.6)

No less than 30 days prior to the hearing, notice of the time and place of the hearing, including the location and procedure for viewing or requesting a copy of the proposed analysis, shall be published in at least one newspaper of general circulation within the jurisdiction of the district. If there is no paper of general circulation, the notice shall be posted in at least three conspicuous places within the district's jurisdiction not less than 30 days prior to the hearing. (Government Code 65995.6)

In addition, the superintendent or designee shall mail a copy of the needs analysis not less than 30 days prior to the hearing to any person who has made a written request if the written request was made 45 days prior to the hearing. The district may charge a fee reasonably related to the cost of providing these materials. (Government Code 65995.6)

The school facility needs analysis may be revised at any time. The revision is subject to the same conditions and requirements applicable to the adoption of the analysis. The existing school building capacity shall be recalculated as part of any revision to the needs analysis. (Government Code 65995.6)

The fees authorized by Government Code 65995.6 and Government Code 65995.7 shall be adopted by resolution as part of the adoption or revision of the school facilities needs analysis. The fees shall take effect immediately upon adoption of the resolution and may not be effective for more than one year. (Government Code 65995.6)

Level 3 Funding: Residential Construction

When Level 3 fees are authorized by law and the district qualifies for Level 2 funding pursuant to Government Code 65995.5, the board may assess a fee on residential

construction pursuant to the requirements of Government Code 65995.7.

Level 3 Funding: Notice and Hearing Requirements

Pursuant to Government Code 65995.7, the notice and hearing requirements, resolution requirement, and term of effectiveness for Level 3 funding shall be the same as the notice and hearing requirements for Level 2 funding as specified above.

All Developer Funding Fees: Additional Requirements

The district shall send a copy of any resolution adopting or increasing developer fees to the city and county, accompanied by all relevant supporting documentation and a map indicating the boundaries of the area subject to the fee. (Education Code 17621)

In cooperation with local governmental agencies issuing building permits, the superintendent or designee shall establish a means by which all of the following shall be accomplished:

1. The project applicant shall receive a written statement of the amount of the fees and notification that the 90-day approval period during which the applicant may protest has begun. (Government Code 66020)

2. The superintendent or designee shall receive and retain acknowledgment that the above notification was received.

3. Before a permit is issued and upon the payment of the applicable fee or requirement, the district shall immediately certify that the fee has been paid or that the district has determined that the fee does not apply to the development project. (Education Code 17620)

Developer fees shall be deposited, invested, accounted for, and expended pursuant to Government Code 66006. Developer fees shall be deposited in a separate capital facilities account, except for temporary investments allowed by law, and shall be used only for the purpose for which they were collected. Interest income earned by the capital facilities account shall also be deposited in that account and used only for the purpose for which the fee was originally collected. (Government Code 66006)

For each separate account so established, the superintendent or designee shall, within 180 days after the last day of each fiscal year, make available to the public the following information for the fiscal year: (Government Code 66006)

1. A brief description of the type of fee in the account or fund

2. The amount of the fee

3. The beginning and ending balance of the account or fund

4. The amount of the fees collected and the interest earned

5. An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees

6. An identification of an approximate date by which the construction of the public improvement will commence if the district determines that sufficient funds have been collected to complete financing on an incomplete public improvement

7. A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan

8. The amount of refunds made pursuant to Government Code 66001 (e) and any allocations made pursuant to Government Code 66001 (f)

The board shall review the above information at the first regularly scheduled public board meeting, which occurs 15 days after the information is made available to the public. Fifteen-

day prior notice of this meeting shall be mailed to any parties filing a written request pursuant to Government Code 66006. (Government Code 66006)

In addition to discharging its public disclosure duties regarding the levying of developer fees, the board shall, for the fifth fiscal year after the first deposit into the account or fund and every five years thereafter, make all of the following findings with respect to the portion of the account or fund that remains unexpended, whether committed or uncommitted: (Government Code 66001)

1. Identify the purpose to which the fee is to be put

2. Demonstrate a reasonable relationship between the fee and the purpose for which it is charged

3. Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements originally identified

4. Designate the approximate dates on which the funding referred to in item #3 is expected to be deposited into the appropriate account or fund

When sufficient funds have been collected to complete the financing of public improvements but such improvements remain incomplete, the district shall, within 180 days of the date that a determination of sufficient funding was made, either identify an approximate date by which construction will begin or refund the unexpended revenues in accordance with Government Code 66001. (Government Code 66001)

Appeals Process for Protests by Developers

Developers of residential, commercial, and industrial projects who claim that the developer fee has been inappropriately levied shall use the following procedures:

(Government Code 66020)

1. The developer shall tender any required payment in full or provide satisfactory evidence of arrangements to pay the fee when due or ensure performance of the conditions necessary to meet the requirements of the imposition.

2. The developer shall serve written notice to the board. This notice shall include:

a. A statement that the required payment is tendered or will be tendered when due, or that any conditions which have been imposed are provided for or satisfied, under protest.

b. A statement informing the board of the factual elements of the dispute and the legal theory forming the basis for the protest.

3. The protest shall be filed at the time of approval or conditional approval of the development or within 90 days after the date of the imposition of the fees.

At the time of the imposition of the fee, the superintendent or designee shall provide each project applicant written notice that the 90-day period in which the applicant may initiate a protest has begun. The developer may file an action to attack, review, set aside, void, or annul the imposition of the fees imposed on the development project within 180 days of delivery of the notice. (Government Code 66020)

ADDITIONAL ADMINISTRATIVE REGULATIONS/GUIDANCE

Level I Funding: Development Fees, Charges, and Deductions

Developer fees for construction within the district will be applied to:

1. New commercial and industrial construction. The chargeable covered and enclosed space of commercial or industrial construction shall not be deemed to include the square footage of any structure existing on the site of that construction as of the date the first building permit is issued for any portion of that construction (Education Code 17620 (a)(1)(A)).

2. New residential construction (Education Code 17620 (a)(1)(B)), absent the imposition of Level 2 or Level 3 Funding (fees) authorized by Government Codes 65995.6 and 65995.7.

3. Other residential construction, only if the resulting increase in assessable space exceeds 500 square feet. The calculation of the "resulting increase in assessable space" for this purpose shall reflect any decrease in assessable space in the same residential structure that also results from that construction. Where authorized under

this paragraph, the fee, charge, dedication, or other requirement is applicable to the total resulting increase in assessable space (Education Code 17620 (a)(1)(C)(i)), except where exempted for making the dwelling more accessible to a severely and permanently disabled person who is a permanent resident of the dwelling (Revenue and Taxation Code Section 74.3 and Education Code 17620 (a)(1)(C)(ii)).

Attached garage conversions. Transforming a garage from an uninhabitable space to habitable space will be charged developer fees at the Level 1 Funding residential rate, subject to the current "other residential construction" guidelines set forth by Education Code 17620 (a)(1)(C)(i).

4. Location, installation, or occupancy of manufactured homes and mobile homes (Education Code 17625).

A fee authorized under Section 17620 will not be applied to the reconstruction of any residential, commercial, or industrial structure that is damaged or destroyed as a result of a disaster, except to the extent that the square footage of the reconstructed structure exceeds the square footage of the structure that was damaged or destroyed (Education Code 17626(a)).

Developer fees will be levied at a commercial rate for any hotel, inn, motel, tourist home, or other lodging for which the maximum term of occupancy for guests does not exceed 30 days, not to include any residential hotel as defined in paragraph (1) of subdivision (b) of Section 50519 of the Health and Safety Code (Government Code 65995 (d)).

Exemptions and Credits

Voluntary demolition and rebuilding of residential structures will receive application of developer fee credit for the original square footage of the demolition if the original structure being demolished was constructed on or after January 1, 1987. Voluntary demolition and rebuilding of residential structures originally built prior to 1987 will not receive application of developer fee credit for the demolished square footage, as developer fees were not collected on the original structure.

Residential, commercial, or industrial construction developer fees will not apply to any facility used exclusively for religious purposes that is thereby exempt from property taxation under the laws of this state, any facility used exclusively as a private full-time day school as described in Section 48222 of the Education Code, or any facility that is owned and occupied by one or more agencies of federal, state, or local government (Government Code 65995 (d)). However, developer fees will be levied at an appropriate residential rate for any building intended or designed to be used, rented, or hired out to be occupied, or which are occupied, for sleeping purposes by guests, which is also the primary residence of those guests.

Requests for Refund of Developer Fees by Developers

Requests for refunds due to project abandonment may be made to the school district by

developers of residential, commercial, and industrial projects whose projects have been abandoned without commencement of work. Developers must provide a copy of the building permit, or building permit application, issued by the city or county building department clearly showing the assigned plan check number and amount paid to the school district, as well as documentation from the city or county building department indicating that the permit or application has been abandoned.

Upon review and approval of submitted documents, the district shall process a refund of developer fees paid. The refund shall be made payable to the property owner, as indicated on the building permit or building permit application.

ESCONDIDO UNION SCHOOL DISTRICT

June 14, 2012 Escondido, California