(a) Except as otherwise provided in subdivision (b), when a local agency imposes a fee on a housing development pursuant to Section 66001 for the purpose of mitigating vehicular traffic impacts, if that housing development satisfies all of the following characteristics, the fee, or the portion thereof relating to vehicular traffic impacts, shall be set at a rate that reflects a lower rate of automobile trip generation associated with such housing developments in comparison with housing developments without all of these characteristics:

1. (1) The housing development is located within a transit priority area and the major transit stop, if planned, is programmed to be completed before or within one year from the scheduled completion and occupancy of the housing development.

2. (2) The housing development is located within one-half mile from three or more of the following:

   1. (A) A supermarket or grocery store.
   2. (B) A public park.
   3. (C) A community center.
   4. (D) A pharmacy or drugstore.
   5. (E) A medical clinic or hospital.
   6. (F) A public library.
   7. (G) A school that maintains a kindergarten or any of grades 1 to 12, inclusive.
   8. (H) A licensed childcare facility.
   9. (I) A restaurant. For purposes of this paragraph, a “restaurant” means a retail food establishment that prepares, serves, and vends food directly to the consumer.
3. (3) The housing development provides no more than one onsite parking space for zero- to two-bedroom units, and two onsite parking spaces for three or more bedroom units.

(c)

1. (1) A local agency shall not impose a land dedication requirement on a housing development pursuant to Section 66001 to widen a roadway if the land dedication requirement is for the purpose of mitigating vehicular traffic impacts, achieving an adopted traffic level of service related to vehicular traffic, or achieving a desired roadway width.

2. (2) Notwithstanding paragraph (1), a local agency may do any of the following:

   1. (A) Impose a land dedication requirement on a housing development if both of the following conditions are met:

      1. (i) The housing development is not located in a transit priority area.
      2. (ii) The housing development has a linear street frontage of 500 feet or more.
   2. (B) Discretionarily impose a land dedication requirement as a condition of approval of a specific housing development project for traffic safety features if the local agency makes a finding, specific to the housing development project and supported by substantial evidence, that the land dedication requirement is necessary to preserve the health, safety, and welfare of the public, including pedestrians, cyclists, and children.
   3. (C) Impose a land dedication requirement to construct public improvements, including, but not limited to, sidewalk and sewer improvements.

(d) For purposes of this section:

1. (1) “Housing development” means a development project with common ownership and financing consisting of residential use or mixed use where not less than 50 percent of the floorspace is for residential use.
2. (2) “Land dedication” means a physical exaction of property for public use without compensation, whether imposed on an ad hoc or legislative basis, that is charged by a local agency to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project.
3. (3) “Major transit stop” has the meaning as the term is defined in Section 21064.3 of the Public Resources Code, except that, for purposes of this section, it also includes major transit stops that are included in the applicable regional transportation plan. “Major transit stop” includes planned major transit stops otherwise meeting this definition whose construction is programmed to be completed before or within one year from the scheduled completion and occupancy of the housing development.
4. (4) “Roadway” means the same as defined in Section 530 of the Vehicle Code.
5. (5) “Transit priority area” means the same as defined in paragraph (7) of subdivision (a) of Section 21099 of the Public Resources Code.