SAB Increases Statutory Level 1 Developer Fees to $5.38

01.29.2026

On January 28, 2026, the State Allocation Board (“SAB”) approved a 4.06% increase to the maximum Level 1 Statutory School Fee (also commonly referred to as “Developer Fees”) authorized to be collected by school districts pursuant to Education Code section 17620 and Government Code section 65995.  The SAB increased the statutory maximum as follows:

• Residential Construction: $5.17 to $5.38 per square foot of assessable space
• Commercial/Industrial Construction: $0.84 to $0.87 per square foot of chargeable covered and enclosed space

As many school districts continue to experience the impacts of declining enrollment, school districts are encouraged to work closely with their school fee consultants to prepare their Fee Justification Reports and carefully analyze whether the full statutory increase to Developer Fees is appropriate.  We note that Developer Fees and Fee Justification Reports are in effect 60 days after approval by the governing board. 

School districts should also be aware of new legislation impacting the collection of Developer Fees against accessory dwelling units or junior accessory dwelling units.  Effective January 1, 2026, Senate Bill 543 limited a school district’s authority to collect against certain accessory dwelling unit projects.  For more information, please visit: How SB 543 Reforms Developer Fees Collected Against ADUs: Atkinson, Andelson, Loya, Ruud & Romo. 

Please contact our team regarding any questions relating to Developer Fees.

This AALRR publication is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other AALRR publication does not create an attorney-client relationship. The Firm is not responsible for inadvertent errors that may occur in the publishing process.

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