How does the 30-day deadline work in practice?

The 30-day clock starts when a developer submits a preliminary application for a housing development project and requests fee estimates. Cities have 30 business days (not calendar days) to provide the preliminary estimate. After final project approval, a second 30-business-day period begins for providing final itemized estimates. Developers should document submission dates, send estimate requests via email or certified mail with tracking, and follow up if deadlines approach without response. While the law doesn't specify explicit penalties for late responses, documented requests establish the developer's statutory right to timely disclosure.

What happens if San Diego fails to provide estimates within 30 days?

AB 1820 establishes the requirement but doesn't specify direct penalties for cities that miss the 30-day deadline. However, developers have several remedies: send formal follow-up correspondence citing Government Code Section 65941.5 (AB 1820's codified provision); escalate to city council members or the city manager's office; file public records act requests for fee schedule documentation; coordinate with housing advocacy organizations that championed the legislation; and document non-compliance as potential leverage in fee negotiations or administrative appeals. Maintaining professional but persistent communication typically produces results, as cities implement new procedures to comply with the 2026 law.

How can investors use AB 1820 estimates for feasibility analysis?

Investors should request AB 1820 estimates concurrent with preliminary applications for multiple scenarios (different unit counts, configurations) to identify optimal project sizing. Use the itemized estimates to build precise pro forma financial models showing land cost + construction cost + government fees + soft costs versus projected revenue. Calculate per-unit economics and overall project IRR with government-verified fee numbers rather than estimates. Compare fee structures across neighborhoods to identify where government costs enhance vs. erode returns. Include AB 1820 documentation in lender packages to demonstrate thorough due diligence and reduce lender risk perception. Development feasibility studies cost $6,000-$50,000, but AB 1820 provides critical fee data free within 30 days.

What documentation should developers request under AB 1820?

Request a comprehensive, itemized estimate showing: each fee category separately (DIF by asset type, school fees, water, sewer, parks, traffic, etc.); the calculation method for each fee (per unit, per sq ft, per EDU); applicable neighborhood or zone-specific rates; total estimated amount for each category; grand total of all fees; payment timing requirements (which fees due at permit issuance vs. final inspection); any available waivers or reductions the project may qualify for; and the effective date of fee schedules used for estimates. Also request information about how fees might change if project timelines extend beyond initial estimates, and whether estimates can be locked in through the SB 330 preliminary application vesting process.

AB 1820 San Diego: How 30-Day Development Fee Disclosure Gives Cash Buyers a Competitive Edge in 2026

Q: What specific fees must San Diego disclose under AB 1820?

AB 1820 requires disclosure of all fees and exactions imposed on housing developments, including: development impact fees for mobility, parks, libraries, and fire ($3,182-$3,987 per unit for multifamily); school impact fees ($5.17 per square foot over 500 sq ft); water and sewer capacity charges (approximately $4,124 per EDU for sewer); traffic mitigation fees; parkland dedication or in-lieu fees; art fees; construction excise taxes; Community Facilities District special taxes; affordable housing linkage fees; and building permit/plan review fees. The estimate must be itemized to show each fee category separately.

January 28, 2026 • 12 min read • By San Diego Fast Cash Home Buyer

TL;DR: AB 1820 Transforms Development Cost Transparency in San Diego

Starting January 1, 2026, AB 1820 requires San Diego to provide itemized development fee estimates within 30 business days of request. With fees ranging from $7,743 in La Jolla to $17,538 in Mid-City per unit before adding school fees, water/sewer charges, and other assessments, this transparency eliminates surprise costs that derail projects. Cash buyers who master AB 1820's disclosure requirements gain competitive advantages in acquisition pricing, feasibility analysis, and project risk reduction—turning fee transparency into profit.

San Diego development fees and AB 1820 transparency for real estate investors

Starting January 1, 2026, a new California law fundamentally changes how real estate investors and cash buyers approach development projects in San Diego. Assembly Bill 1820, signed by Governor Newsom on September 22, 2024, mandates that cities provide itemized, good-faith estimates of all development fees and exactions within 30 business days of request—bringing unprecedented transparency to a process that has historically left developers guessing about total project costs until deep into the approval process.

For cash buyers and real estate investors evaluating San Diego properties, this represents a game-changing advantage. No longer will surprise fees derail projects mid-development or force last-minute financing adjustments. With AB 1820's mandatory disclosure requirements, investors can now calculate accurate pro forma projections from day one, make competitive acquisition offers based on real data, and move faster than competitors still operating with incomplete cost information.

The stakes are substantial: development fees in California average $21,703 per multifamily unit—nearly triple the national average of $8,034. In San Diego specifically, development impact fees can range from $7,743 in La Jolla to $17,538 in Mid-City neighborhoods, with additional charges for schools, water, sewer, parks, and traffic mitigation adding tens of thousands more per unit. AB 1820's 30-day disclosure requirement transforms this complex fee landscape from a liability into an actionable intelligence advantage for savvy cash buyers.

What AB 1820 Requires: Breaking Down the 30-Day Mandate

AB 1820 establishes clear timelines and requirements for fee disclosure at two critical stages of the development process. Understanding these requirements enables investors to strategically time their requests for maximum advantage.

Key Disclosure Stages:

Preliminary Application Stage: When developers submit a preliminary application for a housing development project under SB 330, they can simultaneously request a preliminary fee and exaction estimate. Cities must provide this estimate within 30 business days of submission.
Final Approval Stage: Within 30 business days following approval of a housing project, cities must provide an itemized list and good-faith estimate of the total sum of all fees and exactions that will apply.
Special District Fees: Upon request, school districts and special districts must also provide good-faith estimates of their fees following final project approval.

It's important to note that while these estimates are required for informational purposes, they are not binding. However, they provide developers with documented projections that can inform negotiations and planning, and cities face accountability if actual fees deviate significantly from provided estimates.

Comprehensive Fee Categories AB 1820 Must Disclose

AB 1820 covers an extensive range of fees and exactions that California cities impose on housing developments. The law specifically defines "fees" as charges described in the Mitigation Fee Act, while "exactions" include construction excise taxes, art in-lieu payments, park in-lieu fees, and Community Facilities District Special Taxes.

Development Impact Fees (DIF)

San Diego's FY 2026 fee schedule shows citywide DIF rates for mobility ranging from $3,182 to $3,987 per multifamily unit depending on unit size. The city now assesses impact fees on a citywide basis for parks, mobility, fire, and libraries. In special areas like Otay Mesa, senior housing and multifamily units face an additional $13,916 per unit for local mobility needs.

School Impact Fees

Charged at $5.17 per square foot for units over 500 square feet, school fees can add $5,000 to $10,000 per unit for typical multifamily construction. Units under 500 square feet receive complete waivers under current state law.

Water and Sewer Capacity Charges

San Diego's sewer capacity charge is approximately $4,124 per Equivalent Dwelling Unit (EDU), while water capacity fees vary by meter size. ADUs receive reduced rates at 0.5 EDU, translating to roughly $1,524 for water and $2,577 for sewer—plus San Diego County Water Authority meter fees starting at $5,859 for meters less than 1 inch.

Other Fee Categories

Park and Recreation Fees: Park impact fees vary significantly by neighborhood, with some communities requiring $4,819 while others charge substantially more as part of their DIF assessment.
Traffic Mitigation Fees: For projects in designated Mobility Zones, Active Transportation in Lieu Fees (ATILF) apply to residential and non-residential developments.
Art and Cultural Fees: Art in-lieu payments allow developers to contribute to the city's public art fund rather than commissioning site-specific installations.
Affordable Housing Linkage Fees: Beginning January 1, 2026, AB 2663 adds transparency requirements for inclusionary housing in-lieu fees.

San Diego development fee analysis and cost breakdown for investors

San Diego Fee Landscape: Neighborhood-by-Neighborhood Cost Analysis

Development fees in San Diego vary dramatically by location, making AB 1820's transparency requirement particularly valuable for investors comparing opportunities across neighborhoods. The City's FY 2026 fee schedule reveals significant disparities that directly impact investment returns.

San Diego DIF Comparison by Neighborhood:

Mid-City: $17,538 in development impact fees (highest)
Encanto Neighborhoods: $12,972 total fees
North Park: $9,381 in combined DIF charges
La Jolla: $7,743 in development fees
Mission Beach: $4,819 in assessed fees (lowest)

These neighborhood-specific fee structures mean that a 10-unit multifamily project in Mid-City could face $175,380 in DIF charges alone, compared to just $77,430 for the same project in La Jolla—a difference of nearly $100,000 that directly impacts acquisition price, feasibility, and investor returns.

California's broader fee landscape provides important context: multifamily development fees across the state range from $12,000 per unit in Los Angeles to $75,000-$86,000 per unit in Fremont. San Diego's fees fall in the mid-range of California cities, but AB 1820's transparency requirement gives local investors an advantage in understanding and planning for these costs.

How Cash Buyers Leverage AB 1820 for Competitive Advantage

The 30-day disclosure requirement creates multiple strategic advantages for cash buyers and investors who understand how to use this tool effectively in their acquisition and development strategies.

Accurate Acquisition Pricing

With comprehensive fee estimates in hand, cash buyers can make competitive offers based on real numbers rather than conservative estimates. When competing for development-ready properties, the investor who knows actual fees can bid higher with confidence, securing deals that competitors pass on due to uncertainty.

Accelerated Feasibility Analysis

Development feasibility studies in California typically cost $6,000 to $15,000 for single residential or commercial projects, with larger projects costing $20,000 to $50,000 or more. AB 1820 reduces this analysis timeline significantly—rather than waiting months for complete cost clarity, investors receive government-verified fee estimates within 30 business days, allowing faster go/no-go decisions.

Improved Pro Forma Accuracy

Financial models for development projects rely on discounted cash flow (DCF) analysis to determine critical metrics for investors and lenders. AB 1820's itemized estimates eliminate one of the largest sources of pro forma uncertainty, improving lender confidence and potentially reducing required equity contributions.

Reduced Project Risk

Historically, many cities didn't disclose fees until projects were already under construction, forcing developers to absorb large, unexpected costs that could turn profitable deals into losses. AB 1820 eliminates this risk, making development projects more bankable for cash buyers who can confidently commit capital knowing the full cost structure upfront.

Practical Implementation: How to Request AB 1820 Estimates

Successfully leveraging AB 1820 requires understanding the technical process for requesting estimates and maximizing the quality of information received from municipal agencies.

5-Step AB 1820 Request Process:

Prepare Your Preliminary Application: Include parcel identification, proposed unit count and types, approximate square footage, and basic site plans per SB 330 requirements.
Submit Concurrent Fee Estimate Request: When submitting your preliminary application to San Diego Development Services, explicitly request fee and exaction estimates under AB 1820.
Track the 30-Day Timeline: Document submission dates and follow up if the deadline approaches without response. Cities have 30 business days from preliminary application submission.
Request Final Approval Estimates: Upon project approval, request the itemized list and good-faith estimate required within 30 business days of final approval.
Document and Verify: Maintain all fee estimates as part of your project documentation. Use the City's online DIF calculator to verify estimates against published fee schedules.

Best Practices for Maximum Value

Request estimates for multiple scenarios (different unit counts, configurations) to identify optimal project sizing
Ask for neighborhood-specific DIF breakdowns to understand where fees are highest
Inquire about available fee waivers or reductions for affordable units, ADUs under 750 sq ft, or projects in designated zones
Request clarification on fee payment timing—some fees are due at permit issuance, others at final inspection
Ask about potential fee increases if project timelines extend beyond initial estimates

Integration with 2026 Housing Law Ecosystem: AB 130, SB 79, and AB 1007

AB 1820 doesn't operate in isolation—it's part of a comprehensive package of 2026 California housing laws that together create new opportunities for informed investors. Understanding how these laws interact multiplies the strategic advantages available to cash buyers.

AB 130: CEQA Exemptions and VMT Mitigation

Governor Newsom signed AB 130 as part of the 2025-2026 state budget in June 2025, enacting a new CEQA exemption for infill housing on sites up to 20 acres. When combined with AB 1820's fee transparency, investors can accurately calculate total project costs including CEQA mitigation fees, enabling precise feasibility analysis for infill sites that previously faced uncertain environmental review costs.

SB 79: Transit-Oriented Development Density

SB 79 overrides local density limits to allow high-density residential development along established transit corridors, effective July 1, 2026. AB 1820's fee disclosure enables investors to quickly evaluate whether higher-density SB 79 projects pencil out financially—calculating per-unit fees across 50 units versus 100 units on the same site reveals whether density bonuses translate to actual returns.

Combined Strategic Advantage

Together, these laws create an unprecedented environment for informed real estate investment in San Diego. Investors can identify high-density transit-oriented sites (SB 79), calculate exact development fees (AB 1820), leverage CEQA exemptions for faster approvals (AB 130), and move projects through streamlined review processes (AB 1007)—all while maintaining complete cost transparency from acquisition through certificate of occupancy.

Case Study Applications: AB 1820 in Real-World Scenarios

To illustrate AB 1820's practical value, consider how different investor types leverage fee transparency for specific San Diego development scenarios.

Scenario 1: 8-Unit Multifamily Infill Project in North Park

A cash buyer identifies a 10,000 square foot lot in North Park zoned for multifamily development. Using AB 1820, the investor requests fee estimates concurrent with their preliminary application. The 30-day estimate reveals: $75,048 in citywide DIF charges ($9,381 × 8 units), $41,360 in school fees ($5.17 × 8,000 total sq ft), $32,992 in water/sewer capacity ($4,124 × 8 EDU), plus $15,000 in building permit and plan review fees—totaling approximately $164,400 in government fees alone.

With this precise number, the investor calculates an all-in development cost of $3.2 million ($400k land, $2.4M construction, $400k fees/soft costs) and projected sales revenue of $4.8 million (8 units @ $600k each), yielding a $1.6M gross profit and 50% return on cost. Without AB 1820, the investor might have estimated fees at $120,000 based on incomplete information, discovering the additional $44,400 only after purchase—potentially making the deal unprofitable.

Scenario 2: ADU Development for Rental Income

An investor purchases a single-family home in Pacific Beach with plans to add a 650 square foot detached ADU. AB 1820 fee disclosure reveals: $0 in impact fees (waived for ADUs under 750 sq ft per SB 13), $777 in school fees ($5.17 × 150 sq ft over the 500 sq ft exemption), $2,062 in water/sewer capacity (0.5 EDU), plus approximately $8,000 in building permits—totaling $10,839 in fees. This clarity enables accurate rental yield calculations, with the ADU generating $2,400/month in rental income ($28,800 annually) against known development costs of approximately $150,000 total, producing a 19.2% cash-on-cash return.

Scenario 3: Comparing Opportunities Across Neighborhoods

A developer evaluates similar 12-unit multifamily sites in three neighborhoods. AB 1820 estimates reveal drastically different fee structures: La Jolla shows $92,916 in DIF ($7,743 × 12), North Park shows $112,572 ($9,381 × 12), and Mid-City shows $210,456 ($17,538 × 12). Even if land costs are identical, the Mid-City project faces $117,540 more in fees than La Jolla—equivalent to adding an entire unit of value. This transparency allows the investor to either negotiate Mid-City land prices downward to compensate for higher fees, or prioritize La Jolla and North Park opportunities where fee structures enhance returns.

Strategic Implications for San Diego's Cash Buyer Community

AB 1820 fundamentally shifts the competitive dynamics of San Diego's real estate investment market, creating distinct advantages for cash buyers who adapt their strategies to leverage fee transparency.

First-Mover Advantage in Pre-Market Opportunities

With 1,000+ housing units in San Diego's development pipeline under the building exemption policy, early-stage opportunities abound. Cash buyers who systematically request AB 1820 estimates for properties in preliminary stages can evaluate deals while traditional buyers remain unaware. The 30-day turnaround enables rapid feasibility assessments, allowing cash buyers to submit offers during Q1-Q2 2026 before properties reach MLS listings in Q3-Q4 when competition intensifies.

Enhanced Negotiating Position

Fee transparency strengthens negotiations at every stage. When purchasing entitled land from sellers, documented fee estimates justify lower acquisition prices on high-fee properties. When partnering with builders on joint ventures, AB 1820 data enables more precise profit-split negotiations based on actual costs rather than estimates.

Risk Mitigation and Investor Confidence

AB 1820 directly addresses one of development investing's greatest risks: cost overruns from unexpected government fees. For cash buyers deploying significant capital into San Diego projects, fee certainty means better sleep at night and more aggressive deployment of available funds. This risk reduction is particularly valuable in 2026's environment where easing interest rate pressure and improving affordability create favorable conditions for buyers with long-term outlooks.

Frequently Asked Questions

What is AB 1820 and when did it take effect in San Diego?

AB 1820 is a California housing law signed by Governor Newsom on September 22, 2024, that requires cities including San Diego to provide itemized, good-faith estimates of all development fees and exactions within 30 business days of request. The law took effect on January 1, 2026, and applies to all housing development projects submitted after that date.

What specific fees must San Diego disclose under AB 1820?

AB 1820 requires disclosure of all fees including development impact fees ($3,182-$3,987 per unit), school impact fees ($5.17 per sq ft over 500 sq ft), water and sewer capacity charges ($4,124 per EDU for sewer), traffic mitigation fees, parkland fees, art fees, construction excise taxes, and affordable housing linkage fees. The estimate must be itemized to show each fee category separately.

How does AB 1820 help cash buyers and real estate investors?

AB 1820 provides cash buyers with unprecedented fee transparency that enables accurate acquisition pricing, accelerated feasibility analysis (30 days vs. months of uncertainty), improved pro forma accuracy for lender presentations, true apples-to-apples comparison across San Diego neighborhoods, and reduced project risk by eliminating surprise fees during construction.

What are typical development fees in different San Diego neighborhoods?

San Diego's FY 2026 fee schedule shows significant variation: Mid-City charges $17,538 in DIF; Encanto charges $12,972; North Park charges $9,381; La Jolla charges $7,743; and Mission Beach charges $4,819. Total fees including school fees, water/sewer capacity, and building permits can add $25,000-$40,000 per unit.

Does AB 1820 apply to ADU and small-scale projects in San Diego?

Yes, AB 1820 applies to all housing development projects regardless of size, including ADUs. For ADU projects, fee disclosure reveals impact fees are waived for units under 750 sq ft per SB 13, school fees apply at $5.17/sq ft for area over 500 sq ft, and water/sewer capacity charges at reduced 0.5 EDU rates (approximately $2,062 total).

How does AB 1820 interact with AB 130, SB 79, and other 2026 housing laws?

AB 1820's fee transparency complements other 2026 housing reforms. AB 130 provides CEQA exemptions for infill housing—AB 1820 enables investors to calculate total costs including environmental mitigation fees. SB 79 allows high-density development near transit—AB 1820 helps investors evaluate whether higher density translates to better returns. Together, these laws create an unprecedented environment for informed real estate investment.

AB 1820 represents far more than a procedural change in San Diego's development review process—it fundamentally rebalances the information asymmetry that has historically favored municipalities over developers. For cash buyers and real estate investors, the 30-day fee disclosure requirement transforms development cost uncertainty from a deal-killer into an actionable competitive advantage.

The numbers tell the story: with development fees in California averaging $21,703 per multifamily unit and San Diego neighborhood fees ranging from $7,743 to $17,538 per unit before adding school fees, water/sewer charges, and other assessments, the difference between estimated and actual fees often determines whether projects succeed or fail. AB 1820's mandatory disclosure eliminates this risk, enabling investors to calculate precise pro forma projections, make competitive acquisition offers backed by real data, and deploy capital with confidence.

As San Diego's development pipeline expands with 1,000+ units in various stages of approval, and as complementary laws like AB 130's CEQA exemptions and SB 79's transit-oriented density bonuses create new opportunities, AB 1820 ensures that informed investors can move faster and smarter than competitors still operating with incomplete information. The investors who master AB 1820's technical requirements—requesting estimates concurrent with preliminary applications, documenting all disclosures, and building proprietary databases of neighborhood fee patterns—will build durable competitive advantages in San Diego's evolving real estate market.