More Great News on TUMF Reductions

Your Riverside BIA Government Affairs team is always eager to share good news when it comes to housing opportunities and homebuilding.

That's why we are very pleased to report that the Riverside County Board of Supervisors, Riverside City Council, Eastvale City Council and Perris City Council have all voted unanimously to extend temporary 50% TUMF reductions in their jurisdictions through 2012. The new City of Jurupa Valley also has a 50% reduction in place.

These votes were made possible due to recent action by the Western Riverside Council of Governments (WRCOG) Executive Committee, which approved an extension of the temporary 50% TUMF reduction opportunity for 2012, allowing WRCOG jurisdictions to decide whether or not to adopt the reduction for 2012.

Keep in mind that because TUMF reduction ordinances require two public readings, some jurisdictions will have a short time period where full TUMF rates will be collected. Please contact your Government Affairs team to get these dates for your area.

The Riverside BIA Government Affairs team will continue to solicit support for the 50% reduction in other jurisdictions and look forward to reporting continued good news!

Riverside Votes to Continue TUMF Reduction

We've got some good news this week!

The Riverside City Council voted 7–0 earlier this week to continue the 50% TUMF Reduction through December 31, 2012 or until the $20 million dollar aggregate cap in uncollected TUMF Revenues has been reached.   

The Council waived further readings of this measure and will therefore allow for a seamless extension of the 50% reduction.   

If you have any questions, please contact Bill Blankenship.

Riverside County Reduces DIF Starting October 13, 2011

Good News!

The Riverside County Board of Supervisors voted this morning to extend the temporary reduction of development impact fees effective October 13, 2011.  The reduction will be in force for one year, ending in October 2012.

HOWEVER, the previous temporary reduction expired on August 9.  Since the new reduction will not take effect until October 13, the DIF will be 100% between August 9 and October 13.  

If you have any questions, please call our government affairs gurus at (951) 781-7310.

La Quinta Defers DIF Increase

Great news from our Government Affairs Team! On Tuesday, June 21st the La Quinta City Council voted 5 – 0 to defer the implementation of the increase of its DIF for residential units for another six months.   

The fee deferral represents a savings to the industry in the amount of $3,238 per unit and will be in place until December 30, 2011.    

This is the third extension that the Riverside County BIA has secured for the industry and, as a result, will continue to freeze the current fee for a single family dwelling unit at $4,475.     

If you have any questions, please contact Deputy Director Bill Blankenship at (951) 781-7310 or  

Riverside County cities could keep impact fee discounts

There's a great story in today's Press-Enterprise about the positive impact fee reductions have had on spurring development (and economic recovery) in the Inland Empire. The news is so good, in fact, that many councils and boards are looking to extend fee reductions set to expire this December.

Our own Riverside County Chapter CEO Mark Knorringa is quoted in the article commenting on how builders have used reductions to help keep projects going:

They have said specifically there were some projects they built when they did because of the fee reduction.

The article includes an interesting city-by-city comparison of permits issued during the first eight months of 2009 vs. the first eight months of 2010.

Read the full article

Photo credit: twoGiraffe

Op-Ed by Riverside BIA Preident Kevin Canning in Today's PE

The Riverside Press-Enterprise today ran a terrific op-ed from President Kevin Canning regarding the need for leaders at the civic, county and statewide levels to work together to help our economy recover. The piece explains the vital role construction, particularly that of new housing, plays in our region's economy and the direct, secondary and other ripple effects it carries across nearly all economic sectors and industries.

Says Canning:

Recent efforts in parts of Riverside County and statewide have utilized a proactive approach to revive the hard-hit construction industry. These include temporary reductions in development impact fees and state/federal tax credits, all of which have had positive effects in the context of the recession. It's critical that we continue to allow these industries to recover and re-establish themselves, as they provide employment and economic activity that are of widespread benefit. 

Read the full article

Photo credit: steveleenow

San Bernardino City Council to Reduce DIF Fees

More great news from the fee reduction trenches! The San Bernardino City Council this week endorsed a proposal to cut development fees in half for the next two years and to automatically extend by two years the time developers have from approval of their projects to the start of construction.

In the words of Councilman Chas Kelly:

"What we are trying to do is promote economic stimulus, not only in our city but in the entire region." 

Read the full Riverside Press-Enterprise article

Online Magazine Highlights Riverside's RED TEAM

Ever wonder what your BIA is doing for you? Look no further than this article in for answers. is an online magazine for California city managers, county administrators, public executives and elected officials, and an article posted yesterday describes the Riverside Economic Development RED TEAM's efforts to identify ways to minimize the economic downturn and transition to recovery through increased job opportunities in the construction industry.

In the article, Scott Mann, a Menifee City Councilman, describes how development impact fee reductions helped stimulated economic activity in his city "without a doubt."

A sample of the quotes from our own CEO, Mark Knorringa:

"This isn't to build homes so much as create jobs," Knorringa said. "We're just trying to get some people back to work and turn this thing around."

Read the full article

Banning Mayor: Cutting builders' fees was the right call

Banning Mayor Bob Botts has an excellent editorial in today's Riverside Press-Enterprise in which he explains that "reducing development impact fees is a top priority, as it stimulates our local economy."  Great read! This is a critical time in our region's economic turnaround, and it's vital that all cities in the Inland Empire and Coachella Valley take the steps necessary to spur investment in their communities!

Read the editorial

La Quinta Rejects DIF Increase

We are pleased to report some news from our Desert Region. Yesterday afternoon the La Quinta City Council voted 5-0 to NOT impose a $3,238 (SFD) DIF increase. The increase had been approved back in October 2008 but not implemented. La Quinta will continue collecting its residential DIF at the current rate until January 1, 2011. The Council clearly felt that a fee increase in the current economic environment was not appropriate.

Read the Desert Sun article 

$3,280/DU FEE INCREASE AVOIDED-Rancho California Water District

This morning the Board of Directors of the Rancho California Water District approved a 2010-2011 Budget that DID NOT include the proposed $3,280/DU New Water Demand Offset Fee.  The NWDO fee was included in staff’s recommended proposed budget but Director Drake proposed the removal of the fee seconded by Director Corona and that motion carried 5-2 (Hoagland and Daly opposed).