In an effort to encourage residents to add accessory dwelling units to help lower rents, the city of Pasadena has slashed fees for permitting and plan approval.
The fee reductions for single-family properties are effective immediately and aim to lower out-of-pocket expenses for homeowners to build additional units that serve both the local real estate market and the city’s affordable housing needs, officials said.
Homeowners who use the city’s preapproved ADU Standard Plans or sign affordability agreements with the Housing Department are now eligible for a 50% reduction in plan check fees.
Permit costs such as the General Plan Maintenance Fee and Technology Fee are completely waived for ADUs that use standard plans or affordability agreements, according to the city. ADUs up to 900 square feet get a 25% reduction in permitting fees, and the Construction & Demolition Performance Deposit is now a flat, refundable $1,000 for all ADUs.
Officials expected additional fee reductions that require the City Council to approve an ordinance are expected to go into effect in July. The Residential Impact Fee exemption will expanded to apply to ADUs up to 900 square feet, and dwellings of all sizes with a housing agreement.
The Construction Tax, a fee charged upon permit issuance, will be waived for ADUs that use preapproved plans or have affordability agreements. The fee will drop by 25% for ADUs 900 square feet or smaller.
“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 the city’s announcement. “These efforts reflect Pasadena’s ongoing commitment to increasing housing supply, promoting affordability, and supporting sustainable, community-focused development.”
Information on applying for ADU permits or accessing preapproved plans is at CityofPasadena.net/planning/planning-division/community-planning/accessory-dwelling-units.
