Policy & Legislation
AB 641 Would Reduce Up-front Costs for Affordable Developments
AB 641 (Torrico, D-San Jose) would prohibit local governments from imposing residential development fees before the developer has received a certificate of occupancy for any development in which at least 49% of the homes are affordable to low- or very-low-income households.
Housing California supports this bill, sponsored by the California Rural Legal Assistance Foundation, because it reduces up-front development costs and allows the fees to be paid out of the permanent loan.
According to the state Department of Housing and Community Development, apartment developers pay an average of $15,531 in fees per apartment. In a typical affordable-home development, these fees can represent as much as 25% of the initial cash needed and often render the development infeasible.
No organizations and few legislators oppose AB 641, which was passed by the full Assembly on May 21, 2007 with a 65-9 vote. The Senate Local Government Committee will hear the bill on June 27, 2007.
Contact: Narisha Bonakdar, (916) 447-0503 x 109 or