SAB Supports Legislation to Suspend Level III Fees Until 2015

With the full support of CBIA, the State Allocation Board (SAB) adopted the recommendation from the New Construction Subcommittee (NCS) to seek legislation to suspend the authority of school districts to impose Level III developer fees through January 1, 2015. 

The NCS came to the consensus that the triggering of Level III developer fees would have a significant impact on the already decimated commercial and residential construction industries and that continuing the partnership with homebuilders and developers through the state's school facility program is essential to the timely delivery of new schools. The Board's action, in the form of a recommendation to the Legislature, will result in urgency legislation being introduced within the next few weeks by CBIA. It is the goal of CBIA to keep all parties at the table and involved to secure passage of a school bond on the November 2014 ballot, if not sooner. 

The action by the SAB last week was the culmination of CBIA's policy expertise and political strategy that engaged the Governor directly on this issue in October of last year. Now with the official support of the SAB, including nearly every legislative member of that committee voting to support, CBIA will introduce urgency legislation in March that will statutorily suspend Level III fees until January 1, 2015. 

We would like to thank Senators Alan Lowenthal (D - Long Beach), Loni Hancock (D - Berkeley) and Mark Wyland (R - Escondido) with special thanks to Assembly Members Curt Hagman (R - Chino Hills) and Joan Buchanan (D - Danville) for their leadership on these critical homebuilding issues. We would also like to thank State Superintendent of Public Instruction Tom Torlakson for his support.

CBIA will keep you updated on the progress of this important issue throughout the year.

For more information, contact Richard Lyon and/or Jason Bryant.