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5. Implementation Process and Issues

Typical DA Implementation Steps

1. Establish DIF Goals and Objectives

2. Commission Nexus Studies

3. Incorporate into Capital Improvement Program and Local Plans

4. Conduct Public Hearings

5. Prepare Staff Report/Administrative Record

6. Draft DIF Ordinance, Resolution/Adoption

7. Annual Accounting/Audits

8. Fee Collection and Administration

9. Fee Challenges/Refunds

Key Implementation Challenge—Transparency

Difficulty in estimating total developer charges ("fee stack")

• Many other developer charges outside DIF legislation
• Lack of transparency and standardization
• Local agency—difficulty in assessing DIF reasonableness
• Developer—difficulty in assessing project feasibility; may take project elsewhere

CA Example

Category	Applicable Legislation/ Fee Type	Eligible Uses	Subject to DIF Legislation?
DEVELOPMENT IMPACT FEES (DIFs)	MITIGATION FEE ACT (State DIF Statute)	NEW DEVELOPMENT IMPACTS	YES
In-Lieu Fees	Subdivisions Map Act	Bike paths, open space	No
	Quimby Act	Parks	No
	Inclusionary Housing Ordinance	Affordable housing	No
	Calilfornia Environmental Quality Act (CEQA)	Environmental impacts initiation	Yes (if involuntary)
Other Development Fees	Utility connection fees	Utility system connection	No
	School Facility Impact Fees	School facility	No
	Permit Processing Fees	Permit processing	No

Dealing with Fee Transparency Issues

Key concerns

Need readily available and accessible:

• Fee schedules
• Nexus studies/basis for fee calculation
• Annual accounting of fees already being implemented

Remedies

Some local agencies post on their website:

• All nexus studies in standardized format in advance of fee adoption
• Single, regularly updated master fee schedule linked to interactive fee map
• Fee booklet with step-by-step guidance on relevant fee estimation

Lack of transparency often means lack of local resources, internal coordination, and/or analytical rigor in nexus/feasibility studies—consider joint procurement

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