Denver's Affordable Housing Impact Fee (DRMC Sec. 27-150) and Transportation Impact Fee (DRMC Sec. 56-2) are waived for ADUs under 1,000 sq ft in many districts under Council Bill 23-0739 and Mayor's Executive Order to support ADU production. Standard SDDP plan-review fees, building-permit fees, and Denver Wastewater and Water Department connection charges still apply.
Per the 2024 ADU rezone package and accompanying fee adjustments, Denver does not impose a separate ADU impact fee for affordable housing or transportation on units 1,000 sq ft or smaller. Larger ADUs pay impact fees proportional to additional GFA above 1,000 sq ft. Building-permit fees scale with valuation per DBC 109 and Table 1A β a typical $200K ADU pays approximately $3,500-$5,500 in plan-review and permit fees combined. Denver Wastewater System Development Fee (SDF) and Denver Water connection charges are calculated on meter size and equivalent residential units (ERUs); ADUs sharing a service with the principal dwelling pay a reduced ERU. Stormwater development fees through Public Works also apply if new impervious area is added. The 2024 rezone explicitly directs CPD and Public Works to streamline ADU fees and the Sustainable Denver Affordable Housing Fund covers eligible affordability-restricted ADUs.
Failure to pay required permit and connection fees blocks issuance of the certificate of occupancy. Unpaid wastewater SDF becomes a lien on the property under DRMC 56-114. Misstating ADU square footage to dodge proportional impact fees is a permit-fraud violation under DBC 110.5 β penalty up to $999 per occurrence plus investigation fees.
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See how Denver's adu impact fees rules stack up against other locations.
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