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Budget analysts recommend pilot fee waivers for ADUs; mayor signals wider fee elimination
Summary
The Budget & Legislative Analyst presented follow‑up to the Civil Grand Jury report, suggesting fee waivers could reduce accessory dwelling unit (ADU) costs and modestly increase authorizations; Mayor Breed separately announced intent to propose eliminating certain DBI permitting fees for ADUs and 100% affordable projects.
Budget and Legislative Analyst staff summarized a follow‑up to the Civil Grand Jury’s report on accessory dwelling units and modular housing. Severn Campbell and Linden Berry reviewed case studies (Portland and Seattle) and found reductions in permitting fees and increased outreach often preceded upticks in ADU applications. BLA staff estimated permitting and related city fees account for roughly 8 percent of ADU project costs and that waiving a subset of fees could lower owner costs while costing the city an estimated $2.0–$2.5 million per year at current permit volumes.
The report outlined policy choices: a time‑limited waiver, a pilot targeted to single‑family lots, or selective fee waivers that exclude certain impact fees (for example, school impact fees). BLA recommended a pilot and further study of fiscal impacts and department workflows before wider adoption. During public comment contractors, civil grand jury members and DBI commissioners generally supported fee relief and pilot programs.
Supervisor Valley Brown said she intends to introduce related legislation and the Mayor announced a separate proposal to eliminate DBI permitting fees for ADUs and 100 percent affordable housing projects; the committee continued the item to April 4 to allow fuller review and coordination with the Mayor’s pending language.
