FREQUENTLY ASKED QUESTIONS (FAQs)
ON DEVELOPMENT IMPACT FEES
1. What are Development Impact Fees?
Development Impact Fees are one-time fees collected from new development projects to mitigate their impact on public infrastructure.
2. Who must pay Development Impact Fees?
All new development and redevelopment (e.g., single family residential, multi- family residential, commercial, office and industrial) that adds new square footage would be subject to paying the Development Impact Fees because they would impose additional burdens on City infrastructure.
3. What are other cities doing regarding Development Impact Fees? It is common for cities to adopt or update Development Impact Fee programs as a mechanism to provide infrastructure to accommodate additional development.
4. Can you charge Development Impact Fees on Accessory Dwelling Units (“ADUs”)?
Depending on the size of the units, Development Impact Fees can be charged on Accessory Dwelling Units. Assembly Bill No. 881 approved in October 2019 amended section 65852 of the Government Code and prohibits collection of Development Impact Fees on ADUs smaller than 750 square feet. For ADUs larger than 750 square feet, the City is authorized to collect development impact fees proportionally to the primary dwelling unit.
5. Can Development Impact Fees be used to pay for existing infrastructure deficiencies?
No.
6. Can these Development Impact Fees be used to pay for sidewalk repair or resurfacing?
No, Development Impact Fees cannot be used to fund sidewalk repairs or resurfacing as these are classified as existing deficiencies and per Government Code 66001(g), Development Impact Fees cannot be utilized to rectify existing deficiencies.