Pasadena ADU Construction Fees Reduced

The Pasadena City Council approved a proposal on Monday to significantly reduce or waive several fees associated with building Accessory Dwelling Units (ADUs), as part of a broader push to encourage affordable housing and multigenerational living in the city.

Under the proposed resolution, the city would amend its Fiscal Year 2025 General Fee Schedule to reduce plan check and permit fees for many ADU projects and direct the city attorney to draft an ordinance—within 60 days—that would exempt qualifying ADUs from construction taxes and Residential Impact Fees (RIFs).

According to a City staff report, the changes are aimed at addressing high permitting and impact fees that currently exceed regional averages. Pasadena charges $16,900 for a 1,000-square-foot ADU—well above the regional average of $9,400.

Plan check fees would be reduced by 50% for ADUs that use the city’s pre-approved standard plans or that are governed by affordability covenants, such as those rented to Section 8 tenants or family members.

Permit fees for smaller ADUs (under 900 square feet) would receive a 25% discount on construction taxes, general plan maintenance fees, and technology fees. Those same fees would be fully waived for standard-plan ADUs and affordable units.

Residential impact fees would be waived entirely for ADUs governed by a Housing Agreement, and the exemption threshold would be expanded from 750 to 900 square feet, benefiting the majority of ADUs built in Pasadena.

Refundable construction and demolition (C&D) deposits would be reduced to a $1,000 flat rate, decreasing upfront costs for homeowners.

The proposed reductions follow a March 18 recommendation by the Economic Development and Technology Committee, which urged the Council to adopt a more accessible and affordable ADU permitting framework. Councilmembers and community members had previously requested that staff examine fee structures and report back with options for lowering financial barriers to ADU construction.

Staff analysis shows that since 2021, Pasadena has approved or completed 559 ADUs, with an average size of 600 square feet. About 90% of ADUs built in the city are under 900 square feet, meaning most projects would benefit from the new fee structure.

If approved, the resolution would take effect immediately. The city attorney’s forthcoming ordinance to amend Title 4 of the Pasadena Municipal Code—formalizing the construction tax and RIF exemptions—is expected to return for Council review within two months.