SAB Increases Level 1 Statutory School Fee to $5.17

01.25.2024

On January 24, 2024, the State Allocation Board (“SAB”) approved a 7.84% increase to the maximum Level 1 Statutory School Fee (also commonly referred to as “Developer Fees”) authorized to be collected by school districts pursuant to Education Code section 17620.  The SAB increased the maximum Level 1 Statutory School Fee from $4.79 to $5.17 per square foot for residential construction and from $0.78 to $0.84 per square foot for commercial/industrial construction. 

School districts are encouraged to work closely with their school fee consultants and legal counsel to prepare a report known as a Fee Justification Report (“Report”).  Consideration and adoption of the Report by a school district’s governing board requires a public notification period and a public hearing.  Importantly, the increased Statutory School Fee is not in effect until 60 days following the governing board’s adoption of the Report and new Statutory School Fee.

School districts should also be aware of the new requirements implemented by Assembly Bill 516 (“AB 516”).  AB 516 will impact a school district’s certificate of compliance form and future Annual and Five Year Reports.  More information regarding AB 516 can be found on our firm Alert. 

If you have questions regarding the increase to or the adoption process for the Level 1 Statutory School Fee, please contact one of the attorneys above.

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