To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: INTRODUCE Ordinance No. 2025-18 to establish a 13% reduction in the applicable County Area of Benefit traffic impact mitigation fee for housing developments located in transit priority areas and meeting all other criteria in Government Code section 66005.1(a); WAIVE reading; and FIX December 16, 2025, for adoption. Countywide.
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
INTRODUCE Ordinance No. 2025-18 to establish a 13% reduction in the applicable County Area of Benefit traffic impact mitigation fee for housing developments located in transit priority areas and meeting all other criteria in Government Code section 66005.1(a); WAIVE reading; and FIX December 16, 2025, for adoption, Countywide.
FISCAL IMPACT:
Adoption of Ordinance No. 2025-18 will result in a 13% reduction of Area of Benefit transportation mitigation fees from new residential developments that meet the specific requirements of Government Code section 66005.1(a). These reductions are required by state law. Funding shortfalls in AOB fee programs caused by this reduction will need to be made up using funds from other sources, such as gas tax, Measure J funds, and other state and federal funds. (100% Area of Benefit Fees)
BACKGROUND:
INTRODUCTION
California Assembly Bill 3177 was adopted in September 2024 and modified a section of the Mitigation Fee Act (Government Code section 66005.1) to reduce transportation impact fees for residential developments located within transit priority areas that meet certain requirements. A "transit priority area" (TPA) is defined as an area within one-half mile of a major transit stop; a "major transit stop" would include a rail or bus rapid transit station, a ferry terminal served by either bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 20 minutes...
Click here for full text