Planning & Community Development
Fee Study For Potential Fee Reductions
For Accessory Dwelling Units (ADUs)
Economic Development & Technology Committee
September 17, 2024
Planning & Community Development Department
Introduction
2 • Accessory Dwelling Unit (ADU) Ordinance:
> Recently updated to comply with state law.
> Staff received numerous requests to consider reducing fees applicable to ADUs, specifically related to plan check/permit fees and Residential Impact Fees (RIFs).
> The City’s 2021-2029 Housing Element includes Program #9, which discusses removing constraints (including evaluating housing fees) and Program #11, which discusses alternative housing opportunities (including strategies to facilitate the construction of ADUs).
• Recommendation:
> Receive the report and provide direction to staff regarding potential fee reductions for Accessory Dwelling Units (ADUs).
Planning & Community Development Department
ADU Construction
3 ADU Size # of ADUs % of ADUs
Up to 600 SF 262
77.7%601 to 749 SF 114
750 to 800 SF 50 10.3%
801 to 1,000 SF 34 7.0%
Greater than 1,000 SF 24 5.0%
Total 484 100.0%
• Demand to construct ADUs has been high:
> From 2020 through 2023, a total of 484 permits were issued for ADUs in Pasadena.
> The average house size in the City is approximately 1,600 SF, while the average ADU size is approximately 600 SF.
Planning & Community Development Department
ADUs in Pasadena
4 • Since 2017: 1241 applications have been received for ADUs > 697 ADU permits have been issued
> 411 ADUs have been constructed
> 86 ADUs have applied to obtain a reduced RIF by committing to renting the ADU to a family member
> 3 ADUs have applied to obtain a reduced RIF by committing to renting the ADU to a Section 8 tenant
> The average ADU size is 600 square feet
Planning & Community Development Department
Background on Plan Check Fees
5 • Plan check and permit fees cover City staff costs related to reviewing, processing, inspecting, and maintaining records for construction projects.
• State law does not mandate any reductions to plan checks and permit fees for ADUs.
• Pasadena currently applies the same fees to ADUs for plan check and permit fees as other residential construction.
Planning & Community Development Department
Background on RIFs
• Pasadena’s RIF has existed since 1988:
> Funding for parks, open space and recreational facilities. > Applies to new housing units; per residential unit based on the number of bedrooms.
> Per California law, new developments only pay for their fair share; cannot be used to address existing deficiencies. • Current RIF rates were last updated in 2020 (based on population projections):
> By 2040, the City’s population is projected to increase by 5%, with 62,400 households and 150,700 people.
> New residents will require new parks and recreation facilities.
One means of meeting these needs is to improve and upgrade existing parks and facilities in the City.
6 Planning & Community Development Department
Background on RIFs
7 • Pasadena’s RIF fees:
• Existing RIF Reductions:
> Reduction of 35% for non-affordable units when affordable housing is built on-site.
> Reduced fee of $1,158 for units with an Affordability Covenant or Landlord Agreement (for low/moderate-income families or qualified family members; minimum period of 7 years).
Number of Bedrooms Fee
Studio $ 22,362
1 $ 23,599
2 $ 26,209
3 $ 30,140
4 $ 36,621
5 or more $ 41,393
Planning & Community Development Department
RIFs Applicable to ADUs
8 • Per state law, RIFs can only apply to ADUs 750 SF or larger:
> RIFs shall not exceed an amount proportionate in relation to the square footage of the primary dwelling.
> For example, if the primary dwelling unit is 2,000 SF and the ADU is 1,000 SF, the RIF shall not exceed 50% of what would otherwise be charged.
• RIFs from 2000 to 2023:
> Only 22.3% of ADUs were subject to the RIF.
> $420,000 collected from ADUs (or $105,000 annually), which is
5.6% of all RIFs collected.
Planning & Community Development Department
Fee Survey Findings
9 14 cities surveyed (including Pasadena):
City
ADU Plan Check & Permit Fees
Small ADU
(800 SF)
Medium ADU
(1,000 SF)
Large ADU
(1,200 SF)
Pasadena $ 14,300 $ 16,900 $ 22,100
Santa Monica $ 10,700 $ 12,000 $ 13,800
El Monte $ 8,500 $ 9,300 $ 9,600
La Cañada-Flintridge $ 7,700 $ 9,900 $ 11,400 Sierra Madre $ 7,600 $ 9,000 $ 9,800
Alhambra $ 7,100 $ 9,000 $ 10,200
San Marino $ 7,000 $ 9,000 $ 13,100
West Covina $ 6,700 N/A $ 9,800
Burbank $ 6,800 $ 9,100 $ 9,600
Pomona $ 6,400 $ 7,300 $ 7,600
West Hollywood $ 5,500 $ 6,400 $ 7,200
Temple City $ 4,800 $ 6,000 $ 6,700
Arcadia $ 3,900 N/A $ 5,800
South Pasadena $ 3,900 N/A $ 5,400
Average $ 7,200 $ 9,400 $ 10,200
Planning & Community Development Department
Permit Fees for 591 SF ADU
10 *
***
*
*
*
**
*
*
Legend
Fees other cities may
charge separately
Fees specific to
Pasadena
Planning & Community Development Department
Plan Review Fees: 591 SF ADU
11 *
*
Legend
Fees other cities may
charge separately
Fees specific to
Pasadena
**
**
Planning & Community Development Department
Plan Check Fee Reductions
12 • Option 1 – Tiered Reductions:
> Tiered reductions for plan check and permit fees for small and medium ADU’s, with smaller ADUs receiving greater reductions, as they typically take less time to review.
> Staff does not recommend reductions for ADUs greater than 1,000 SF, as they typically require a greater level of staff review. • Option 2 – Affordable Unit Reductions:
> Reductions limited to small and medium sized ADUs that include an Affordability Covenant or Landlord Agreement. > Would further the goal of incentivizing ADUs as affordable housing.
Planning & Community Development Department
• Proposed Reductions for ADUs:
• Examples of Reductions (rounded to nearest hundredth):
*Small is 800 SF, medium is 1,000 SF and large is 1,200 SF 13 *ADU Size Option 1 (all ADUs) Option 2 (Affordable ADUs only) Small ADU 50% reduction 50% reduction
Medium ADU 25% reduction 25% reduction
Large ADU No reduction No reduction
*ADU Size Current Fees Proposed Reductions Proposed Fees Small ADU $ 14,300 -50% $ 7,200
Medium ADU $ 16,900 -25% $ 12,700
Large ADU $ 22,100 N/A No reduction
Plan Check Fee Reductions
Planning & Community Development Department
RIF Reductions
14 • Maintain Existing Reductions:
> The City currently provides a very considerable RIF reduction for ADUs with an Affordability Covenant or Landlord Agreement, to a flat rate of $1,158.
> Further, state law currently exempts ADUs less than 750 SF from RIFs (regardless of affordability).
• Option 1 – Exempt all ADUs up to 800 SF:
> Option would go beyond state law and exempt all ADUs up to 800 SF from the RIF (affordable and market rate).
> Option represents only a 50 SF increase.
> Majority of ADUs (88%) will benefit from the proposed reduction. > RIF collected from ADUs would be reduced by 35% (from $105,000 to $68,000 annually).
e
Planning & Community Development Department
Next Steps
• If directed to pursue fee reductions staff
will return to EdTech with a formal
recommendation for the City Council to
adopt a fee resolution.
15 Planning & Community Development
Fee Study For Potential Fee Reductions
For Accessory Dwelling Units (ADUs)
Economic Development & Technology Committee
September 17, 2024
Planning & Community Development Department
Locations of ADUs (2019-2021)
17 Planning & Community Development Department
ADU Permits Issued (2020-2023)
18 1
3 5
2 4
76 Total: 484 ADUs
Council
District
%of ADU
Permits Issued
CD 1 21%
CD 2 26%
CD 3 8%
CD 4 17%
CD 5 9%
CD 6 11%
CD 7 8%
Planning & Community Development Department
Permitting Trends of ADUs
19 ADU Application Submittals in Pasadena
Year 2017 2018 2019 2020 2021 2022 2023 2024 Total
Submittals 4 18 53 89 299 338 255 185 1,241
* Through September 15, 2024
0%
5%
10%
15%
20%
25%
30%
35%
Complete Expired Finaled Hold In Review Issued
6%
18%
30%
0%
19%
26%
ADU Application Status 2020-2024
Planning & Community Development Department
Single-family Sites: ADU Scenarios
20 Street
Attached ADU
Front Front
Detached
ADU
Attached
ADU
Existing or Proposed
Primary Dwelling
Junior
ADU
Attached ADU
New construction:
• Max. 850 sf.
for a studio or
1-bedroom.
• Max 1,000 sf.
for more than
1-bedroom.
• Max. 50% of the
existing dwelling.
Conversion:
• No size limit.
Junior ADU
• Must be attached &
within the existing
primary dwelling.
• Max. 500 sf.
Existing or Proposed
Primary Dwelling
Junior
ADU
Detached ADU
New construction:
• Max. 1,200 sf.
(1,000 sf. in HODs).
Conversion:
• No size limit.
Junior ADU
• Must be attached
& within the
existing primary
dwelling.
• Max. 500 sf.
Planning & Community Development Department
21 Street
Attached ADU
Front
Junior
ADU
Detached ADUs
Conversions
Maximum of 2 total
for conversions
and/or new
construction.
Attached ADUs
Conversions only
• Shall be non-
habitable space
up to 25% of the
number of units in
each multi-family
structure, with a
minimum of 1.
• Numbers shall be
rounded down.
Detached ADUs
New Construction
Maximum of 2 total
for conversions
and/or new
construction.
Existing
Multi-family
Structure
e.g., 6 existing
units = 1 ADU
Existing Multi-family Structure
e.g. 12 existing units = 3 ADUs
Existing Detached Structure
Detached
ADU
Multi-family Sites: ADU Scenarios