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Assembly committee backs prorated ADU impact fees to remove fee "cliff"
Summary
SB1117 would prorate impact fees so local governments charge only for the square footage of an ADU above 750 sq ft; supporters said the change removes a $12,000–$28,000 penalty that stalls projects, while special districts warned about lost infrastructure revenue.
Author of SB1117 told the committee the bill clarifies existing accessory dwelling unit (ADU) law so local governments assess impact fees only on the portion of an ADU that exceeds 750 square feet rather than on the entire unit once it crosses the threshold. The sponsor said the change would reduce unnecessary cost burdens that can halt projects.
Stephanie Gutierrez, an ADU strategist with ADU West Coast, said homeowners building ADUs often face financing limits and that crossing the 750-square-foot threshold can add between $12,000 and $14,000 per unit in impact fees, citing a specific Orange County family whose two ADUs were stalled by $28,000 in fees. “This small but meaningful change improves efficiency, it boosts accountability and it gives local governments and families a clear path to delivering homes,” she said.
Opponents — including the California Special Districts Association, the League of California Cities, and park and recreation districts — argued impact fees fund infrastructure and services; they warned that reductions will shift costs to entities that have limited revenue pathways to backfill lost fee revenue. Several committee members pushed for guardrails that allow special districts to demonstrate capacity or nexus concerns and for clarifications on how the bill interacts with per-connection or set fees.
Outcome: The committee passed SB1117 out of the housing committee by roll call (transcript records a 10–0 vote with two not voting), directing the bill to the Assembly Committee on Local Government.
