AB 874: Mitigation Fee Act: development impact fees: qualified residential ownership and qualified rental projects.

This bill would require local agencies to provide qualified residential rental and ownership projects with the option to pay or defer development impact fees. Development impact fees are fees collected by local agencies to fund public improvements or facilities. The fees would be set at $0 or a borrower would be able to enter into a development impact fee deferral agreement loan. This loan would allow borrowers to pay the fees over time. The bill would also require local agencies to regulate fees for water and sewer connection fees, among others, and prohibit requiring payment of fees until the final inspection or certificate of occupancy is issued. The bill aims to provide more flexibility for qualified residential rental and ownership projects.