ADUs under 750 sq ft in Daly City are fully exempt from impact fees by state mandate (Cal. Gov. Code 65852.2(f)(3)(A)). ADUs of 750 sq ft or larger may be charged impact fees, but only in proportion to the size of the ADU relative to the primary dwelling. School fees under Ed. Code 17620 also do not apply to ADUs under 750 sq ft. Daly City's Master Fee Schedule (per dalycity.org/249/Fee-Schedule) implements these caps. Standard building-permit fees and plan-review fees still apply.
Cal. Gov. Code 65852.2(f)(3)(A) provides: 'A local agency, special district, or water corporation shall not impose any impact fee upon the development of an accessory dwelling unit less than 750 square feet.' For ADUs of 750 sq ft or larger, Gov. Code 65852.2(f)(3)(B) requires that impact fees be charged 'proportionately in relation to the square footage of the primary dwelling unit.' San Mateo County school impact fees under Ed. Code 17620 follow the same exemption for ADUs under 750 sq ft. Daly City's Master Fee Schedule (updated annually and posted at dalycity.org/249/Fee-Schedule) lists current Planning Division, Building Division, sewer connection, and traffic-impact fee amounts. Plan-review fees (65% of building permit fee) and standard building permit fees based on construction valuation still apply to all ADUs regardless of size. Connection fees for water (operated by Daly City Water and Wastewater Resources) and sanitary sewer can also apply for new detached ADUs but are not 'impact fees' under Gov. Code 65852.2(f)(3) and may be charged. The Planning Division (650-991-8033) provides invoices for current fees, since amounts are revised each fiscal year.
Charging impact fees on an ADU under 750 sq ft violates Cal. Gov. Code 65852.2(f)(3)(A) and can be challenged. Property owners who paid such fees in error are entitled to a refund. There is no city-level penalty against owners for fee-related issues - this provision is a state-mandated cap on city fee-collection authority.
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