CA AB2722

Prohibits noncompliant local agencies from requiring payment of development fees or charges on qualified developments until 20 years from the date of final inspection or certificate of occupancy, whichever occurs first.

Allows noncompliant local agencies to require property owners or lessees to execute a promissory note secured by a deed of trust as a condition of building permit issuance if fees remain unpaid.

Deferred fees may accrue interest at the applicable federal rate published by the Internal Revenue Service on the date the contract is entered into.

Applies only to fees for public improvements or facilities construction, excluding code enforcement, inspection services, and ordinance enforcement fees.

Defines "noncompliant local agency" as one that failed to meet regional housing needs in the prior assessment cycle and either has not submitted its latest production report or reported issuing fewer low- or moderate-income housing building permits than required.