Developer Fees Online Portal

In 1998, the California Legislature passed Senate Bill 50, which authorizes school districts to levy developer fees to finance the construction or reconstruction of school facilities required to meet the educational demands created by new construction within their respective districts.

Developer fees are levied by the Palmdale School District pursuant to the provisions of Education Code Section 17620 which authorizes school districts to levy a fee, charge, dedication or other form of requirement against any development project for the construction or reconstruction of school facilities provided the district can meet the legal requirements, including justification for levying fees.

Government Code 65995 limits the fee to be collected subject to therein stated exceptions to the amount set forth therein (“Level I” fee).  On January 24, 2024, the State Allocation Board’s biennial adjustment increased the statutory fee to $5.17 per square foot for residential construction and $0.84 per square foot for commercial/industrial construction.

Pursuant to Education Code 17623 (a), Palmdale School District, as an elementary school district serving grades TK-8, entered into a Fee Sharing Agreement with the Antelope Valley Union High School District. The Fee Sharing Agreement specifies that Palmdale School District can collect up to seventy-four percent (74%) of the maximum Level I fees adopted by the State. In order to adopt Level 1 fees, school districts must justify their need for the fees through a justification study PSD is currently justified to impose $3.83 per square foot of assessable space for new residential construction, $0.62 per square foot of assessable space for new commercial/industrial construction, and $0.05 per  for new commercial/industrial construction classified as mini-storage.

Any residential or commercial/industrial construction project within the Palmdale School District’s boundary may be subject to the fee. 

Developer Fees for Residential and Commercial Construction 
All fees are calculated per square foot of assessable space determined by the local building department for all commercial/industrial and residential construction. Square footage (scope of project) is determined by the City of Palmdale or Los Angeles County based on calculation of assessable space and/or chargeable covered and enclosed space. Fees are due before the issuance of a building permit. 

 

Developer fees apply to:

How is the developer fee owed to PSD calculated?
The developer fee owed to PSD is calculated at the current rate in effect at the time an owner/developer presents the Certificate of Compliance issued by the City of Palmdale. Residential additions of 500 sq. ft. or less are exempt from developer fee. For additions greater than 500 sq. ft., fees are calculated for the entire square footage of the addition.

How often do rates change and how are the rates determined?
PSD evaluates the rates every other year (approximately every April or May). The rates are determined based on studies that include State Allocation Board information, demographic data, and statistical analysis of estimated impacts of future development on the District.

Does the Certificate of Compliance have an expiration date?
The Certificate of Compliance expires one (1) month from the date of issuance, which is the date when the District receives payment. An owner/developer has one (1) month from the date of issuance to acquire a building permit from the City of Palmdale.

What if the Certificate of Compliance expires?
If the building permit is not issued prior to the date of expiration of the Certificate of Compliance, Owner/Developer shall take all steps necessary to obtain a new Certificate of Compliance for the project, and shall pay to PSD the current fees owed, if any, before obtaining the building permit. District shall allow Owner/Developer a credit against the fee adjustment for fees previously paid for the project for which the expired Certificate of Compliance was issued.

Is there a credit for demolished property?
Fees are assessed for the difference between new construction and demolished square footage. City of Palmdale or Los Angeles County will determine the square footage to be charged.

Does PSD process refunds? 
If a project is cancelled or reduced, Facilitron in collaboration with PSD will process refunds upon receiving documented verification from the City of Palmdale or Los Angeles County. Refunds are only made to the original payee. Refund checks are mailed directly to the property owner’s address provided on the original application.

 

This special tax levied on the parcel following the issuance of a building permit for construction of a new residential dwelling unit(s). The developer has the option of paying the current developer fees or annexing into the CFD. When they annex into the CFD, the special tax is passed on to the homeowner with their ad valoreum (regular) property taxes. The amount is assessed on the square footage of the home, not the assessed value.

In 1990/91 when the CFD was formed the rate began at $.22 per square foot. That rate increases each year by 2% where it is now.

At the time CFD 90-1 was established, applicable law did not require a specific end date for the levy of special taxes, therefore there is no legal end date for the Special Taxes; special taxes are primarily used to pay debt service on outstanding bonds, which are expected to be fully repaid in 2044 but could be extended in the future.

 

There is a document that you sign at the time you buy the house that discloses this information. Unfortunately, not everyone explains the document in detail, nor do they always know all the terms. Some sellers will tell you it only lasts a year or two or up to 20 years—this information is incorrect. If you sell the home, you will also have to disclose the special assessment to the next buyer by providing a Notice of Special Tax.

We only submit the annual special tax roll to the assessor's office once a year, in August. It is possible at the time of submittal, based on the timing of the building permit for construction of the home, the annual special tax doesn't get on the current tax roll, which is one year you don't have to pay. 

There is a Notice of Special Tax disclosure document that you sign at the time you buy the house.
Unfortunately, not everyone explains the document in detail, nor do they always know all the terms. Some sellers will say there is no Mello-Roos but will have you sign the document for a special assessment and tell you it only lasts a year or two. You need to read before you sign.

 If you did not sign the document, you will need to discuss that with your seller. Unfortunately, that does not relieve the tax liability due to PSD.

These special taxes can ONLY be used to house students — whether new construction, adding modular buildings or reconstructing or modernizing current buildings. They cannot be used for salaries, supplies, textbooks, etc.

No. Property is only annexed as vacant land. Once the home is built the assessment cannot be moved. Most homes in the Palmdale School District boundary area built after 1991 are annexed into the CFD. Any home built after 2000 by the big-name builders such as KB Homes, Beazer Homes, Pulte Homes, DR Horton, Pacific Communities, etc. are within the CFD and will have the special assessment.

The following are excluded from the fees: