Builders can cut upfront costs for impact fees and necessary public improvement fees

[Felicia Nitu]

Under SB-684, the costs for permits can vary depending on factors like the number of lots and units being built. In California, impact fees, school fees, and in-lieu fees can exceed $150,000 per home often forcing developers to delay or cancel projects. SB-937 helps by allowing builders to defer certain impact fees until the certificate of occupancy is issued, easing financial pressure during construction.

How SB-937 Lowers Upfront Costs

// Deferred Impact Fees
· Builders can postpone school fees and certain public improvement costs until occupancy approval.

// Improved Project Feasibility
· Reduces early-stage financial burdens, making more housing projects viable.
· Helps prevent construction delays caused by high upfront costs.

// Supports Housing Development Goals
· Allows cities to advance housing production despite rising construction expenses.
· Encourages more development by improving cash flow during the building process.


How Real Estate Agents and Investors Benefit

Lower upfront costs mean more projects can move forward, increasing the supply of new homes and investment opportunities. Agents and investors who understand SB-937 can identify properties where fee deferrals improve cash flow, leading to stronger returns and expanded market potential.