Mitigation Fee Act: mitigating vehicular traffic impacts.
The bill establishes that housing developments located within designated transit priority areas, which have certain retail amenities nearby, and comply with specific parking requirements can have their impact fees set at a rate at least 50% lower than those for developments lacking these features. The parking requirements state that housing units with zero to two bedrooms would require no more than one onsite parking space, while larger units can have up to two. This change is intended to encourage the development of more transit-friendly housing and reduce reliance on vehicles.
Senate Bill No. 358, introduced by Senator Becker on February 12, 2025, proposes amendments to the Mitigation Fee Act, specifically addressing how local agencies set fees to mitigate the vehicular traffic impacts of housing developments. The existing law mandates that these fees must reflect a lower rate of automobile trip generation for housing developments that meet certain conditions. SB358 seeks to remove the requirement for local agencies to adopt findings after a public hearing, under which a housing development could be charged a standard rate if it could be demonstrated that it generates fewer trips than standard developments.
The legislation is expected to spark debate among local governments and developers over the balance between necessary infrastructure funding and promoting affordable housing. Critics may argue that reducing fees could limit resources needed for transportation infrastructure improvements. Supporters, however, claim that it incentivizes wise development practices that align with state goals for public transit and sustainable living, effectively addressing the housing crisis while promoting environmental benefits.