CA AB678

Prohibits cities and counties from imposing fees and exactions on housing development projects if the total exceeds 12% of the city's or county's median home price, unless approved by the Department of Housing and Community Development.

Requires the Department of Housing and Community Development to develop a waiver application process, establish approval standards, and post median home price analyses for each city and county on its website.

Mandates the department create a nexus study template by January 1, 2023, to help local jurisdictions determine the connection between fees/exactions and housing development impacts.

Establishes requirements for local agencies to adopt nexus studies and make individualized determinations that housing projects will have the same type and amount of impact analyzed in the study before imposing housing impact requirements.

Creates enforcement mechanisms allowing the Attorney General to sue for violations and courts to order refunds and impose escalating monthly fines ($10,000 to $100,000) deposited into the Housing Development Fine and Exaction Cap Account Fund.

Establishes the Housing Cost Reduction Incentive Program to reimburse cities and counties for 50% of development impact fee waivers or reductions provided to qualified rental housing developments.