CA SB937

Limits utility service fees exception to fees related to connections only, capping them at actual costs incurred by the utility provider for connection activities.

Extends affordable housing exemption from early fee payment to any housing developer (previously limited to nonprofit developers) for developments with at least 49 percent of units reserved for lower income households.

Creates new "designated residential development projects" category (including projects with 10 or fewer units, density bonus projects, and affordable housing projects) that cannot require fee payment until first certificate of occupancy is issued.

Allows developers of designated projects to post performance bonds or letters of credit to guarantee fee payment, or permits local agencies to collect unpaid fees as a lien and include them in property tax collection.

Requires local agencies to authorize staff to approve fee payment contracts and post model contract forms on their websites before requiring property owners to execute such contracts.