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HomeGovernment CodeCh. 2Art. 2§ 62576 Commercial Linkage Fee Validation

§ 62576 Commercial Linkage Fee Validation

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 62576 Commercial Linkage Fee Validation

Key Takeaways

  • •If a city charges a fee to businesses for new housing because of their projects, the city must prove the fee is fair and not too high.
  • •Only businesses that were directly charged this fee can complain about it in court.
  • •Before complaining, the business must ask the city for papers showing why the fee is fair, and wait 30 days.
  • •The city can charge a small fee for copying these papers.

Example

A big company builds a new office and the city says they must pay $100,000 for new homes because their workers need places to live.

The company thinks $100,000 is too much. Before they can go to court, they must ask the city for papers showing why the fee is fair. If the city can’t prove the fee matches the real cost of building homes, the company might win.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 62576 Commercial Linkage Fee Validation

(a) In any judicial action or proceeding to validate, attack, review, set aside, void, or annul any resolution providing for the establishment, increase, or imposition of a commercial linkage fee pursuant to this article in which there is an issue whether the fee is a special tax within the meaning of Section 50076, the authority shall have the burden of producing evidence to establish that the commercial linkage fee does not exceed the reasonable cost of providing the housing necessitated by the commercial development project for which the commercial linkage fee is imposed, as determined in the regional nexus study pursuant to subdivision (b) of Section 62571. (b) A party may only initiate an action or proceeding pursuant to subdivision (a) if both of the following requirements are met: (1) The commercial linkage fee was directly imposed on the party as a condition of project approval, as provided in Section 62574. (2) At least 30 days before initiating the action or proceeding, the party requests that the authority provide a copy of the documents, including, but not limited to, the regional nexus study prepared pursuant to subdivision (b) of Section 62571, that establish that the commercial linkage fee does not exceed the reasonable cost of providing the housing necessitated by the commercial development project for which the commercial linkage fee is imposed. In accordance with subdivision (a) of Section 7922.530, the authority may charge a fee for copying the documents requested pursuant to this paragraph. (c) For purposes of this section, costs shall be determined in accordance with fundamental fairness and consistency of method as to the allocation of costs, expenses, revenues, and other items included in the calculation. (Added by Stats. 2024, Ch. 767, Sec. 1. (SB 440) Effective January 1, 2025.)

Last verified: January 22, 2026

Key Terms

resolutionportauthoritydevelopmentaccordanceconnectionestablishmentimposition

Related Statutes

  • § 62575 Commercial Linkage Fee Protests
  • § 62571 Commercial Linkage Fee Limits
  • § 62572 Commercial Linkage Fee Limits
  • § 62573 Commercial Linkage Fee Hearings
  • § 62574 Commercial Linkage Fee Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 62576.
View Official Source