Planning & Community Development
Economic Development & Technology Committee
March 18, 2025
Proposed Fee Reductions for
Accessory Dwelling Units
(ADUs)
Planning & Community Development
ADU Ordinance Update
2 Background
ADU FEE REDUCTIONS
Planning & Community Development
Background
• ADU Ordinance Update:
> A study of Accessory Dwelling Unit (ADU) fees was requested when Pasadena’s ADU Ordinance was updated in 2024.
> Staff was directed to research the subject and present recommendations to the Economic Development and Technology Committee (EdTech).
• EdTech:
> On September 17, 2024, Planning & Community Development Department staff presented information on fees for ADUs and how they compared to other cities in the region.
> Pasadena’s plan check and permit fees are higher than the other cities surveyed, although this can be misleading since many fees are charged separately by other cities.
3 Planning & Community Development
Background
City
ADU Plan Check & Permit Fees
Small ADU (800 SF) Medium (1,000 SF) Large (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
4 > Pasadena’s plan check
and permit fees are higher
than the other cities
surveyed.
> Survey is misleading since
many cities charge fees
separately. Examples:
> Construction and
Demolition (C&D)
security deposit
> Fire Department review
> School Fees that are
collected on behalf of
PUSD.
Table 1 – Survey of ADU Plan Check & Permit Fees
Planning & Community Development
Background
5 > Pasadena’s RIF for
ADUs is higher than
other cities.
> Pasadena has higher
RIFs for single-family
and multi-family.
Table 2 – Survey of RIFs for ADUs (for a 1,000 SF, 2-bedroom ADU and a 2,000 SF primary dwelling; rounded up to the
nearest hundred)
City RIF Amounts RIF
Categories Thresholds
Pasadena $ 12,200 Parks Number of bedrooms and
proportion of main dwelling
Burbank $ 11,600
Parks
Proportion of main dwelling
Pomona $ 9,300
South Pasadena $ 5,300
Arcadia $ 5,000
El Monte $ 4,000 Parks and
traffic
Alhambra $ 2,000 Traffic
Amount reflects reduced
flat rate RIFs for ADUsSanta Monica $ 2,000 Water
Temple City $ 500 Parks
San Marino, West
Covina, La
Cañada-Flintridge,
West Hollywood &
Sierra Madre
$ 0 No RIF
charged
West Covina has no RIF for
ADUs. Other cities have no
RIFs for residential projects.
Planning & Community Development
Background
• EdTech directed staff to evaluate:
> Reductions to plan check and permit fees
> If the C&D deposit could be reduced
> Exempting ADUs up to 900 square feet from RIFs
> Reductions for affordable AUDs.
6 Planning & Community Development
ADU Ordinance Upda
7 Analysis
ADU FEE REDUCTIONS
Planning & Community Development
Analysis
• Permitting trends in Pasadena show that since 2021:
> A total of 559 ADUs are either under construction or completed > The average size for an ADU is 600 square feet.
> The vast majority of ADUs (90%) are under 900 square feet. > The average house size in Pasadena is 1,600 square feet (per the last census data).
• Recommended Categories of ADU Fee Reductions/ Exemptions:
> Plan Check Fees
> Permit Fees
> Residential Impact Fees (RIFs)
8 Planning & Community Development
Plan Check Fees
• Pasadena’s Plan Check Fees:
> Are paid when construction drawings are submitted to the Pasadena Permit Center.
> Cover staff time needed for various City departments to review the plans for compliance with local codes and standards.
> Vary by department but are all based on the building permit valuation (BPV).
> Are centralized, meaning that fees for the various reviewing departments are charged collectively.
• Other Cities’ Plan Check Fees:
> May separate plan check fees by department. For example, cities that contract with Los Angeles County for fire services are invoiced separately by the LA County Fire Department.
9 Planning & Community Development
Recommended Reductions
10 1. Reduce plan check fees by
50% for ADU Standard Plans
2. Reduce plan check fees by
50% for Covenanted
Affordable ADUs, Section 8
ADUs and ADUs for family
members
This would reduce plan check
costs by over $1,400 (from
$2,831 to $1,416).
Table 3 – Sample Plan Check Fees for a 600 SF ADU
(rounded up to the nearest dollar)
Plan Check Fees Existing Fees
50% Reductions
Standard Plans and
ADUs for Affordable,
Section 8 & Family
Members
Building Division $ 1,952 $ 976
Design & Historic
Preservation Section $ 72 $ 36
Zoning Section $ 167 $ 84
Fire Department $ 400 $ 200
Public Works Department $ 240 $ 120
Total $ 2,831 $ 1,416
Planning & Community Development
Permit Fees
• Pasadena’s Permit Fees:
> Are paid when the construction drawings are approved by the City and a building permit is being issued. The building permit gives the applicant permission to begin construction.
• Permit Fee Categories:
1. City building permit fees – No reductions proposed (18.2% of permit fees)
2. Other City fees – Reductions recommended (63.2% of permit fees)
1. Construction Tax
2. General Plan Maintenance Fee
3. Technology Fee
4. Construction & Demolition Performance Security Deposit
3. Non-City fees – No reductions. (14.5% of permit fees) 11 Planning & Community Development
Recommended Reductions
12 Table 4 – Sample Building Permit Fees
Fee Type
Existing Fees
*based on a
600 sf ADU
Reductions for
Standard Plans
and ADUs for
Affordable,
Section 8 &
Family
Members
Reductions
for ADUs
less than
900 SF
Fee
Proposals
Building Permit Fees:
Building Permit $ 1,433 $ 1,433 $ 1,433
City Fees:
No reductions
proposed
Records Mgt. Surcharge $ 131 $ 131 $ 131 Building Processing $ 72 $ 72 $ 72 Fire Processing $ 35 $ 35 $ 35 Construction Notice Sign $ 15 $ 15 $ 15 Other City Fees:
Construction Tax $ 1,900 $ 0
$ 1,425 City Fees:
Waivers or
reductions
proposed
General Plan Fee $ 495 $ 0 $ 371 Technology Fee $ 495 $ 0 $ 371 C&D Deposit (refundable) $ 2,968 $ 1,000 $ 1,000 C&D Admin Review Fee
(nonrefundable) $ 390 $ 390 $ 390 City Fee:
Flat rate
Non-City Fees:
School District Impact
Fees $ 1,324 $ 1,324 $ 1,324 Non-City
Fees:
No authority
to reduce
fees
CA Building Standards
Fee $ 4 $ 4 $ 4
SMIP Residential $ 13 $ 13 $ 13 Total $ 9,275 $ 4,417 $ 6,213
1. Waive the Construction Tax,
General Plan Maintenance
Fee and Technology fee for all
ADUs utilizing the City’s
Standard Plans Program,
Covenanted Affordable ADUs,
Section 8 ADUs and ADUs for
family members.
2. Reduce the Construction Tax,
General Plan Fee and
Technology fee by 25% for all
other ADUs that are 900
square feet or less.
3. Reduce the C&D Performance
Deposit to a $1,000 flat rate
for all ADUs.
Planning & Community Development
Residential Impact Fees
• Pasadena’s Residential Impact Fees for ADUs:
> Are charged by the Public Works Department and are applicable when new ADUs are built. Fees are paid separately from permit fees and are collected prior to issuance of the Certificate of Occupancy.
> Are charged proportionately in relation to the square footage of the primary dwelling unit. Therefore, if the ADU is half the size of the primary dwelling, impact fees cannot exceed 50% of what would otherwise be charged. > Are not charged for ADUs that are less than 750 square feet in size, per Senate Bill 13.
> Are reduced to $1,193 for covenanted affordable ADUs, Section 8 ADUs or ADUs for family members (for a minimum commitment of 7-years by the property owner).
> Are not charged for the majority of ADUs since only 22% are 750 square feet or greater.
13 Planning & Community Development
Recommended Reductions
14 Table 5 – Current RIFs for ADUs
1. Expand the RIF exemption threshold
for ADUs to 900 square feet.
2. Waive the RIF for Covenanted
Affordable ADUs, Section 8 ADUs and
ADUs for family members. This
reduction would apply regardless of
size.
ADU Size Primary
Dwelling
Existing RIF Proposed
RIF
800 SF 1,600 SF $ 12,196 $ 0
900 SF 2,000 SF $ 10,977 $ 0
1,000 SF (2 BD) 2,000 SF $ 13,545 $ 13,545
1,200 SF (3 BD) 2,000 SF $ 18,692 $ 18,692
ADUs for Affordable,
Section 8
& Family Members
800 SF to 1,200 SF Various SF $ 1,193 $ 0 Planning & Community Development
ADU Ordinance Upda
15 Recommendation &
Conclusion
ADU FEE REDUCTIONS
Planning & Community Development
Fiscal Impact
16 > It should be recognized that a reduction in plan check and permit fees would result in a loss of revenue to the City’s Building Fund with the City subsidizing staff costs related to reviewing, processing, inspecting and maintaining records for ADUs.
> With regards to RIFs, staff estimates the RIF collected annually for ADUs would be reduced by approximately 50% (from $105,000 to $52,000). > This would directly impact funds available to the Parks and Recreation Department funds for parks, open space and recreational facilities in the City.
Planning & Community Development
Conclusion and Recommendation
17 > Over the past several years, the City has implemented several programs to encourage ADU production, including the adoption of revised regulations, offering complimentary ADU virtual consultations, and the availability of standard ADU plans.
> The City Council also directed staff to look at potential fee reductions.
Incorporating the proposed fee reductions provides a balanced approach that provides substantial reductions for market rate ADUs that are 900 square feet or smaller and represent the overwhelming majority (90%) of ADUs built in the City.
> Deeper reductions are proposed for ADUs utilizing the City’s standard plans and Affordable ADUs, Section 8 ADUs and ADUs for family members.
> Overall, staff finds this could aid in the construction of ADUs and increase housing options in the City.
Planning & Community Development
Economic Development & Technology Committee
March 18, 2025
Proposed Fee Reductions for
Accessory Dwelling Units
(ADUs)
Planning & Community Development
ADU Construction by Council District
19 1
3 5
2 4
76 Total: 414 ADUs
83 109
35 69
36 49
33 1 2 3 4 5 6 7
ADUs Finaled 2020-2025
by Council District
Planning & Community Development
Locations of ADUs (2019-2021)
20 Planning & Community Development
Permitting Trends of ADUs
21 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
22 ADU Permits by Year
195
217
172
252
50 0
50 100
150
200
250
300
20212022202320242025
Permit Number
Year
ADU Permits by Year*
*Includes ADUs that are:
• in plan check, or
• permits issued, or
• finaled.
Planning & Community Development
Environmental Analysis
• Find that the recommended actions are exempt from the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines per Section 15061(b)(3). The reduction of plan check and permitting fees for ADUs is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to the provisions of CEQA.
23