Chico City Council considers tiny homes project and transportation fee hikes

During the City of Chico's City Council meeting on May 6, 2025, significant discussions centered around housing development and the city's fee schedule, reflecting ongoing concerns about affordable housing and community development.

One of the most notable topics was the proposal for a tiny homes project, which aims to provide 60 homes to address the city's housing shortage. A council member expressed strong support for the initiative, emphasizing its potential to contribute positively to the community. This project aligns with the city's broader efforts to tackle housing demands, particularly as the region faces increasing pressures for affordable living options.

In addition to housing initiatives, the council reviewed proposed amendments to the city's fee schedule, which included substantial increases in development impact fees. A council member raised concerns about a proposed 24% increase in transportation impact fees, which could add approximately $3,000 to the cost of a single-family home and $2,500 for an apartment. This increase has sparked debate among council members and community stakeholders, with some arguing that such fees could disincentivize new housing projects and exacerbate the affordability crisis.

Public comments during the meeting echoed these concerns. Representatives from the Chico Builders Association highlighted the potential negative impact of the fee increases on local development, suggesting that they could price out hundreds of households from the market. They urged the council to delay the vote on the fee increases until a comprehensive nexus study is completed later this year, which would provide a clearer understanding of the implications of these fees.

The council ultimately decided to send the transportation impact fee and storm drainage fee proposals back to the finance committee for further review, reflecting a consensus that a deeper analysis is necessary before implementing such significant changes. This decision underscores the council's commitment to balancing the need for infrastructure funding with the imperative of maintaining affordable housing options.

Additionally, the council addressed the adoption of fire hazard severity zones as mandated by the California Department of Forestry and Fire Protection. The ordinance aims to enhance community safety in wildfire-prone areas, although the city opted not to expand the designated zones due to a lack of specific guidance from the state regarding building codes and defensible space requirements.

In conclusion, the City Council's discussions on May 6 highlighted critical issues surrounding housing affordability and community safety. The decision to revisit the proposed fee increases indicates a proactive approach to ensuring that development policies align with the city's goals of fostering sustainable growth while addressing the pressing needs of its residents. The council's next steps will be closely watched as they navigate these complex challenges.