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Exactions
Exactions and Impact Fees in California
A Comprehensive Guide to Policy,
Practice, and the Law

(formerly called Public Needs and Private Dollars)
William W. Abbott, Peter M. Detwiler,
M. Thomas Jacobson, Margaret Sohagi, and
Harriet A. Steiner
ISBN 0-923956-65-4   $50.00

Designed to help public officials, citizens, attorneys, planners, and developers understand exactions. With case studies, practice tips, drawings, and photographs to illustrate key considerations and legal principles.

Chapters at a Glance Preface
About the Book Table of Contents (PDF)
About the Authors 2002 Supplement (PDF)




CHAPTERS AT A GLANCE

  1   Introduction
  2   Defining the Terms
  3   Authority for and Limitations on Exactions—Constitutional Issues
  4   Exactions—Statutory Authority and Limitations
  5   Overview of the Fee Adoption Process—AB 1600 Nexus Legislation
  6   School Facilities
  7   Challenging Exactions—Protests, Legal Actions, and Audits
  8   Meeting Local Needs Through Exactions and Other Techniques
  9   Funding Neighborhood-Specific Infrastructure and Amenities




ABOUT THE BOOK

This is a practical, detailed guide for determining the appropriate and legally defensible mix of exactions and fees local governments may employ to ensure that developments help solve ever-increasing community needs. The book also includes definitive explanations about the distinctions among taxes, fees, assessments, land dedications, land reservations, and other exactions and development requirements.


Topics include:
  • The fiscalization of land use: realities in California
  • Meeting local needs for infrastructure and public facilities through taxes, exactions, and other techniques
  • Legal authority for and limitations on the imposition of exactions
  • Local funding techniques: bonds, taxes, and fees
  • Procedures for adopting various fees
  • California's AB 1600 nexus legislation
  • Methods by which developers are required to participate in the funding of public works and facilities
  • A look at specific exaction issues of current interest around the state, including child care facilities and services, inclusionary housing, and transit impact fees
  • Legal challenges to the imposition of exactions, dedications, fees, and charges
  • An appendix that includes relevant code sections, as well as sample agreements and exactions studies



ABOUT THE AUTHORS

William A. Abbott is a partner in the Sacramento, California law firm, Abbott & Kindermann, where he practices land use, environmental, municipal, and real estate law. For the last twenty years Mr. Abbott has also served as a lecturer and program coordinator on land use law for University of California Extension.

Peter M. Detwiler, Staff Director for the State Senate Local Government Committee in Sacramento, California, advises state legislators about legislation affecting public finance, land use, and the powers of local agencies.

Harriet A. Steiner is a partner in the Sacramento, California law firm, McDonough, Holland & Allen. She practices land use, environmental, municipal, and telecommunications law, and has served as City Attorney for the City of Davis for more than ten years.

M. Thomas Jacobson is a Professor in the Department of Environmental Studies and Planning at Sonoma State University in Rohnert Park, California.

Margaret Sohagi is a partner in the Los Angeles law firm, Fox & Sohagi, where she represents public entities, both from a legal and planning perspective. Ms. Sohagi is also District Counsel for Cambria Community Services District and Past Chair of the Public Law Executive Committee of the State Bar Public Law Section.




PREFACE

Land development requirements are a source of recurring debate and controversy in most California cities and counties. Meaningful dialogue is often hampered by the complex and unclear statutes under which project applicants and local governments must operate. This book brings together the myriad constitutional and statutory schemes that directly affect how a decision-making body determines the appropriate mix of development requirements that can or will be imposed on a particular application.

Essentially, a local government wishing to impose a particular type of development fee or dedication, otherwise known as an "exaction", may do so as long as certain procedures and standards of fairness are followed. The more difficult issues are the ones based on fairness and policy. Proposition 13, enacted in 1978, caused the tax burden reallocation, which, coupled with higher impact fees and special taxes, resulted in the legally justifiable but politically questionable shifting of costs that will doubtless grow over time. The policy issue is of another dimension. Because the housing sector is vital to California's economy, local officials may need to reconsider the tradeoff between public facilities and economic growth. This re-examination is an important component of the decisions by some local governments to reduce, if not eliminate, certain development fees during the recession of the 1990s.

Chapter 1 examines the combination of federal, state, and local considerations that have combined to calculate demands on developers to contribute to solving the increasing range of community needs. Chapter 2 explains the distinctions between taxes, fees, assessments, land dedication, land reservation, and other development requirements. Chapters 3 and 4 discuss the constitutional and statutory issues governing the imposition of exactions, and chapter 5 is devoted to compliance with the nexus legislation for impact fees, AB 1600. The characteristics particular to school impact fees are addressed in chapter 6, as revised by the comprehensive rewrite panel in 1998, while chapter 7 addresses legal challenges to various exaction requirements.

Chapter 8 looks at specific exaction issues of current interest around the state, including child care, inclusionary housing, transit impact fees, and others. Chapter 9 is a new addition, and serves as a transition from exactions to operations—in other words, the choices that are available to fund the operation and maintenance of improvements. The appendices contain relevant code sections as well as sample agreements, exaction studies, and a flow chart summarizing key legal considerations. The cases and statutes cited are current to January 2000; in selective circumstances, more current case references are included. Ed. note: Supplement available listing recent cases and statutes.



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