California Development Agreement Statute

• Author: David L. Callies/Daniel J. Curtin Jr./Julie A. Tappendorf
• Pages: 231-234

VII. CALIFORNIA DEVELOPMENT AGREEMENT STATUTE

65864. The Legislature finds and declares that:

(a) The lack of certainty in the approval of development projects can result in

a waste of resources, escalate the cost of housing and other development to the

consumer, and discourage investment in and commitment to comprehensive

planning which would make maximum efficient utilization of resources at the

least economic cost to the public.

(b) Assurance to the applicant for a development project that upon approval

of the project, the applicant may proceed with the project in accordance with

existing policies, rules and regulations, and subject to conditions of approval,

will strengthen the public planning process, encourage private participation in

comprehensive planning, and reduce the economic costs of development.

(c) The lack of public facilities, including, but not limited to, streets, sewer-

age, transportation, drinking water, school, and utility facilities, is a serious im-

pediment to the development of new housing. Whenever possible, applicants

and local governments may include provisions in agreements whereby appli-

cants are reimbursed over time for financing public facilities.

65865. (a) Any city, county, or city and county, may enter into a development

agreement with any person having a legal or equitable interest in real property

for the development of the property as provided in this article.

(b) Any city may enter into a development agreement with any person having

a legal or equitable interest in real property in unincorporated territory within

that city’s sphere of influence for the development of the property as provided

in this article. However, the agreement shall not become operative unless an-

nexation proceedings annexing the property to the city are completed within

the period of time specified by the agreement. If the annexation is not com-

pleted within the time specified in the agreement or any extension of the agree-

ment, the agreement is null and void.

(c) Every city, county, or city and county, shall, upon request of an appli-

cant, by resolution or ordinance, establish procedures and requirements for

the consideration of development agreements upon application by,or on behalf

of, the property owner or other person having a legal or equitable interest in the

property.

(d) A city, county, or city and county may recover from applicants the direct

costs associated with adopting a resolution or ordinance to establish procedures

and requirements for the consideration of development agreements.

65865.1. Procedures established pursuant to Section 65865 shall include provi-

sions requiring periodic review at least every 12 months, at which time the ap-

plicant, or successor in interest thereto, shall be required to demonstrate good

faith compliance with the terms of the agreement. If, as a result of such periodic

review, the local agency finds and determines, on the basis of substantial evi-

dence, that the applicant or successor in interest thereto has not complied in

good faith with terms or conditions of the agreement, the local agency may ter-

minate or modify the agreement.

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APPENDICES