Under Cal. Gov. Code §65852.2(f)(3)(A), ADUs under 750 sq ft are statutorily exempt from impact fees (city, special-district, school, and water-corporation). ADUs at 750 sq ft and larger pay impact fees proportional to the ratio of ADU floor area to the primary dwelling. Chico's 2022–2030 Housing Element documents the City Council's 50% reduction of locally-controlled ADU impact fees on top of the state exemption — a direct post-Camp-Fire housing response.
Cal. Gov. Code §65852.2(f)(3)(A) provides: any ADU less than 750 sq ft of livable floor area shall not be charged impact fees by any local agency, special district, or water corporation. CMC §19.76.130 incorporates the state fee cap. For ADUs ≥750 sq ft, fees must be charged proportionate to the square footage of the primary unit (§65852.2(f)(3)(B)). Chico's 2022 Housing Element (Program 3) further reduces locally-controlled development impact fees by 50% for ADUs to stimulate production. School-district impact fees are separately controlled by CUSD under Cal. Ed. Code §17620 and apply only to ADUs >500 sq ft of assessable space. Sewer/water connection fees are capped by state law for ADUs ≤750 sq ft.
Charging impact fees on an ADU <750 sq ft is unlawful under Cal. Gov. Code §65852.2(f)(3)(A) — applicants may request refund and HCD review. For larger ADUs, disputes over proportionality go through the standard Mitigation Fee Act protest process (Cal. Gov. Code §66020).
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