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Chico, CA Accessory Structures: ADU Impact Fees (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

ADU fee reduction
50% of base impact fees
Condition
shares primary residence's sewer lateral
Fee types covered
transportation, drainage, park, building
Set by
city council resolution, Chapter 3.85

Summary

Chico cuts development impact fees in half for an ADU that shares its sewer lateral with the main house, under Chico Municipal Code § 3.85.135.

Where a single-family residential unit includes an Accessory Dwelling Unit (ADU), the ADU shall be assessed fifty percent (50%) of the development impact fees, so long as the ADU utilizes the same sewer lateral as the primary residence of the property; and

C.   In acknowledgement that the number of bedrooms in a new residence correlates to household size, and therefore to impacts on City infrastructure and facilities, and, similarly, that the number of bathrooms in a residence directly correlates to the number of drainage fixtures, which corresponds to impacts on the City's sanitary sewer infrastructure, the following fee reductions and increases are applied:

1.   Single Family Dwelling Units:

i.   Units that have two (2) or less bedrooms and two (2) or less bathrooms will receive a thirty percent (30%) reduction in the base impact fee

ii.   Units with four (4) or more bedrooms and three (3) or more bathrooms will pay a thirty percent (30%) increase from the base impact fee

2.   Multi-Family Dwelling Units:

i.   Units that have one (1) or less bedrooms and one and half (1.5) or less bathrooms will receive a thirty percent (30%) reduction in the base impact fee

ii.   Units with four (4) bedrooms and bathrooms that range between two (2) and four (4), will pay a thirty percent (30%) increase from the base impact fee

iii.   Units with five (5) or more bedrooms that also have more than

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Supplement contains local legislation current through: Codified Resolution No. 53-26, adopted 7-14-26 and Ordinance No. 2622, adopted 6-2-26).

Full Breakdown

When a single-family lot adds an Accessory Dwelling Unit, Chico assesses the ADU at fifty percent of the base development impact fees, covering transportation, storm drainage, park, and building/equipment fees, but only if the ADU uses the same sewer lateral as the primary residence. An ADU on its own separate lateral does not qualify for the discount and is billed at the standard rate applied to new residential construction. State ADU law (Gov. Code §§ 66310-66342) caps what cities can charge ADUs outright in some cases, but where it doesn't preempt, this local 50% reduction is the operative city rule.

Violations & Fines

Not a violation-based provision: it sets the impact fee rate applied at building permit issuance; the fee amount is set by city council resolution under Chico Municipal Code Chapter 3.85.

Frequently Asked Questions

Does every Chico ADU get the 50% impact fee discount?
No: only if the ADU uses the same sewer lateral as the primary residence; a separately connected ADU pays the standard rate.
Can Chico charge full impact fees on a small ADU?
State law limits fees on ADUs under 750 sq ft to zero and prorates larger ones, which can override this local 50% rule where they conflict.

Sources & Official References

Other rules in Chico

All Chico rules

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