Advisor Commission Calls Special Meeting for Monday to Review Lower Impact Fees for Most New Development

Pasadena’s Transportation Advisory Commission will review proposed updates to development impact fees that could significantly reduce costs for new housing projects during a special meeting Monday.

The Commission will consider modifications to the Traffic Reduction and Transportation Improvement Fee (TR/TIF) program, which funds transportation infrastructure needs generated by new development. The proposed changes would reduce fees for most development categories, particularly for residential projects.

“Overall, fees were reduced amongst most categories,” according to a report prepared by Transportation Director Joaquin Seguis for the Commission.

Single-family home development fees would drop substantially from the current rate of $11,141.89 per dwelling unit to between $4,216 and $5,392, depending on the home’s size. Similarly, multi-family residential fees would decrease from $4,314.10 to between $1,607 and $2,217 per unit.

The proposal also creates separate fee categories for lodging, medical offices, hospitals, and research and development facilities, which were previously grouped under broader classifications like “retail” or “office.”

“Adding the land use categories broadens the applicability and realigns the fee closely to typical development experienced in the City,” said the report. “These additions help to right-size the fees for specific land uses.”

The revised fee structure aims to comply with recent state legislation, including AB 602 and SB 13, which require residential impact fees to be proportional to unit size.

The proposed fees were developed following a comprehensive nexus study conducted by consultant Fehr & Peers. The study compared Pasadena’s fees with neighboring jurisdictions and determined appropriate rates based on anticipated growth through 2035.

Before reaching the Transportation Advisory Commission, city staff presented the proposal to stakeholder groups, including the Pasadena Foothill Association of Realtors and the South Lake Business Association.

The special meeting begins at 4 p.m. Monday in the City Hall Basement Grand Conference Room at 100 North Garfield Avenue.

If approved, the recommendations will advance to the Municipal Services Committee and the City Council for final review. The revised fees would take effect three months after council approval.