ADU Fees Slashed To Boost Housing Development

The City of Pasadena has approved significant reductions in permitting and plan check fees for Accessory Dwelling Units (ADUs) on single-family properties to encourage construction and promote affordable housing options. The initiative, effective immediately, aims to lower out-of-pocket expenses for property owners seeking to build additional units on their properties.

“These fee adjustments mean that the majority of ADUs in Pasadena will benefit from an approximately 25% reduction in overall permitting and plan check costs, while those that utilize the City’s Standard Plans or enter into a Housing Agreement can see savings of over 50% compared to the current fee structure,” according to a city statement.

Under the new policy, applicants using the city’s pre-reviewed ADU Standard Plans or entering into affordability agreements with the Housing Department will receive a 50% reduction in plan check fees.

The city has also fully waived General Plan Maintenance and Technology fees for these qualifying ADUs, while units up to 900 square feet will receive a 25% reduction in these fees.

Additionally, the Construction & Demolition Performance Deposit has been simplified to a flat, refundable $1,000 for all ADUs regardless of size or type.

The city has implemented these changes in a phased approach. The first phase is effective immediately, while further fee reductions requiring ordinance changes are expected to take effect in July.

In the second phase, the Residential Impact Fee exemption will expand to cover ADUs up to 900 square feet. ADUs with Housing Agreements will be completely exempt from this fee regardless of size. The Construction Tax charged upon permit issuance will be waived for ADUs using Standard Plans or with affordability agreements, and reduced by 25% for units up to 900 square feet.

Property owners interested in building ADUs can find more information, including how to apply for permits or access the Standard Plans, on the city’s website at: www.cityofpasadena.net/planning/planning-division/community-planning/accessory-dwelling-units/.