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Development Stimulus Passed, Project Fee Deferrals Begin in July

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The SF Examiner reports that Gavin's development stimulus legislation — allowing developers to defer up to 85 percent of their regularly scheduled fees — has been passed by the Board of Supes, 10 to 1. That means that starting July, developers can choose to put in down payments on what used to be a raft of different fees, now consolidated, and get going on their projects — and then pay the rest of their fees later. The 269-unit project at 900 Folsom, for example, would owe $3.2 million in impact fees; under the new legislation, developer AGI Capital Group would only need to put down $683,000 before getting started on the project. The down payment idea was a concession to community advocates who were afraid developers would spend years building out large projects while infrastructure and such things suffered. There was also, at one point, a proposal to have developers pay less affordable housing fees in exchange for a permanent transfer fee on developments, but it seems that may have fallen by the wayside. In any case — is that the sound we hear the sound of champagne bottles uncorking?
· City Hall Watch: Developers allowed to defer fees in bid to aid economy [SF Examiner]
· Development 'Stimulus' Could Increase Economy by $250M a Year [Curbed SF]
· Development 'Stimulus' Could Goose Timetables on 4 Major Projects [Curbed SF]