Key Takeaways

• Maximum Level 1 developer fees increased to $5.17 (residential) and $0.84 (commercial).
• To receive an increase, School Districts must justify it through an impact study and pass a resolution.

On January 24, 2024, the State Allocation Board met and approved an increase to the maximum Level 1 developer fees that school districts may charge pursuant to Education Code section 17620.

The new maximums are increased from $4.79 to $5.17 (residential) and from $0.78 to $0.84 (commercial). The new maximums represent an increase of 7.84 percent.

School Districts seeking to increase their Level 1 fees will need to study the impacts of new development to justify the increase and pass a resolution to implement the increase. It is critical that the study and resolution meet the applicable requirements of Education code and Government Code.