News & Resources

SAB Approval of Level 3 Developer Fees

May 26, 2016 | Legal Developments and News

On May 25, 2016, the State Allocation Board (SAB) authorized school districts to impose Level 3 developer fees.  In accordance with Government Code section 65995.7, the SAB determined that State funds for new school facility construction under the School Facility Program are not available because the SAB is no longer approving apportionments for new construction due to a lack of funds available for that purpose.  The SAB authorized staff to notify the Secretary of the Senate and the Chief Clerk of the Assembly that the SAB made this determination as of May 25, 2016.

Fremont Unified School District, Dublin Unified School District, and others advocated vigorously for this acknowledgement that, without a State bond, high-growth districts lack sufficient facility funding.  Dannis Woliver Kelley serves as counsel for the Dublin and Fremont school districts in their pursuit of this remedy.  The action was opposed by the California Building Industry Association (CBIA) and Coalition For Adequate School Housing.  We understand that the CBIA has threatened to file suit to stop the SAB’s action.  We will keep you up to date as the situation develops.

The staff report indicated that it has been over seven months since the SAB apportioned funds for new construction and 15 months since the SAB provided unfunded approval.  The SAB acknowledged that, at this time, new construction funds are exhausted and the SAB has ceased to make apportionments for new construction.

This action will affect school districts that meet the statutory requirements to charge Level 2 fees.  These school districts should refer to their School Facilities Needs Analysis and the resolution by which the school district’s governing board authorized imposition of the Level 2 fees, in order to determine whether and how to increase Level 2 fees to Level 3 fees, should they choose to do so.

More information on the process to impose Level 3 fees will be forthcoming.


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