Health & Saf. Code, § 50160

(a) The Legislature finds and declares as follows:

(1) It is the intent of the Legislature to maximize the production of affordable housing by promoting the efficient use of state financial assistance for new construction administered by entities within the California Housing and Homelessness Agency, and to promote policies that encourage local partnerships, actions, and policies that reduce affordable housing development costs.

(2) It is further the intent of the Legislature to encourage cities, counties, and cities and counties to waive or reduce development impact fees on state-funded affordable housing projects in order to maximize the impact and efficiency of state affordable housing investments.

(3) In this section, it is the intent of the Legislature to focus exclusively on development impact fees or charges imposed by cities, counties, or cities and counties, and not include any fees or charges assessed, imposed, collected, or administered by, or on behalf of, school or community college district, special districts, utilities, or other governmental entities, regardless of whether the authority for such fees derives from a resolution or ordinance of a city, county, or city and county.

(b) (1) Subject to paragraph (2), for purposes of this section, “quantifiable in-kind local contribution” means a financial or in-kind commitment by a city, county, or city and county, including, but not limited to, a waiver, reduction, exemption, or deferral of any of the following development impact fees for a development project by the city, county, or city and county:

(A) A fee or charge described in the Mitigation Fee Act (Chapter 5 (commencing with Section 66000), Chapter 6 (commencing with Section 66010), Chapter 8 (commencing with Section 66016), and Chapter 9 (commencing with Section 66020) of Division 1 of Title 7 of the Government Code).

(B) In-lieu fees for affordability requirements.

(C) A construction excise tax.

(D) In-lieu fees for a requirement that the housing development project provide public art.

(E) In-lieu fees for dedications of parkland imposed pursuant to Section 66477 of the Government Code.

(2) For purposes of this section, “quantifiable in-kind local contribution” does not include any of the following:

(A) A tax, special tax, or other charge imposed by an entity other than a city, county, or city and county.

(B) A fee exempted for a project pursuant to Section 65915 of the Government Code.

(C) A utility fee or charge described or imposed under Chapter 7 of the Mitigation Fee Act (commencing with Section 66012) of Division 1 of Title 7 of the Government Code.

(c) (1) To the extent feasible, a state entity within the California Housing and Homelessness Agency, including, but not limited to, the Housing Development and Finance Committee, the Department of Housing and Community Development, and the California Housing Finance Agency, shall consider quantifiable in-kind local contributions when awarding competitive multifamily affordable housing funding for new construction projects.

(2) For purposes of paragraph (1), a quantifiable in-kind local contribution shall be considered an enforceable funding commitment.

(3) When complying with paragraph (1), the state entity shall determine the relative weight assigned to a quantifiable in-kind local contribution in scoring or evaluation applications to encourage cities, counties, and cities and counties to reduce, limit, or defer local development impact fees on state-funded affordable housing projects.

(4) Prioritization for funding administered pursuant to Section 50675.1.3 shall be granted to projects that waive or reduce impact fees as described in paragraph (1) of subdivision (b).

(d) This section shall apply to any notice of funding opportunity issued after July 1, 2027.