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Affordable housing impact fee

This fee applies to projects where there are new residences or added residential floor area.

When it's required

This fee applies to:

  • New single residential units with more than 2,000 square feet of Conditioned Floor Area
  • Additions and teardowns/rebuilds of single residential units that result in over 500 square feet of added space where the new total Conditioned Floor Area is greater than 2,000 square feet.

Conditioned Floor Area is defined as the floor area (in square feet) of enclosed conditioned space on all floors of a building, as measured at the floor level of the exterior surfaces of the exterior walls enclosing the conditioned space.

For projects with an addition: If there have been building permits issued for small residential additions (≤ 500 square feet) on the property within the past two years from the date of the current application, the floor area of the previous permit(s) is added to the floor area of the current application.

Fee calculation

Generally, the total Conditioned Floor Area for the project determines the fee rate per square foot. The fee rate is then applied to the amount of floor area that exceeds 2,000 square feet.

Payment of the Affordable Housing Impact Fee is required prior to issuance of a Building Permit.

FY 2025-26 Affordable Housing Impact Fee
Conditioned Floor Area Fee per square foot If new ADU, JADU or Ag Worker Unit proposed concurrent to project
≥ 3,000 $19.28 $9.64
> 2,000 and < 3,000 $9.64 $0.00
≤ 2,000 $0.00 $0.00

Exceptions and Reductions

  1. Deed-restricted units that are affordable to low- and moderate-income households are not subject to the Affordable Housing Impact Fee.
  2. Square footage designated for an Accessory Dwelling Unit (ADU) or dedicated as Agricultural Worker Housing is not subject to the Affordable Housing Impact Fee.
  3. Depending on the size of the single residential unit, the development of an ADU or Agricultural Worker unit concurrent with the home construction can qualify the project for a 50% reduction or waiver of this fee (see table above).

Example scenarios

(SF = square feet)

Scenario: An owner of an existing 2,900 SF single residential unit proposes to add 800 SF.

  1. The total conditioned floor area of the single residential unit is 2,900 SF + 800 SF = 3,700 SF.
  2. Because the additions would result in a new total floor area greater than 3,000 SF, the project will be assessed at a fee rate in the “≥ 3,000” tier.
  3. In Fiscal Year 2025-26, the fee rate for the “≥ 3,000” tier is $19.28/SF.
  4. To calculate the fee: Since the 800 SF addition would be subject to a fee rate of $19.28/SF, the Affordable Housing Impact Fee for this project is 800 SF x $19.28/SF = $15,424.

(SF = square feet)

Scenario: An owner of a vacant property or an existing structure being demolished proposes to build a 2,500 SF single residential unit and a 600 SF Accessory Dwelling Unit (ADU).

  1. The total conditioned floor area is 2,500 SF + 600 SF = 3,100 SF.
  2. Because the development would result in a new total floor area greater than 3,000 SF, the fee rate will be assessed in the “≥ 3,000” tier.
  3. However, because an ADU unit is proposed concurrent to the project, the fee rate for the “≥ 3,000” tier is $9.64/SF in Fiscal Year 2023-24.
  4. To calculate the fee: The first 2,000 SF is deducted from the single residential unit to yield 500 SF, and the 600 SF ADU is not subject to a fee. The Affordable Housing Impact Fee for this project is 500 SF x $9.64/SF = $4,820.

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Page last updated on July 23, 2025.