Durham does not impose municipal impact fees on ADUs, but a new ADU connecting to public water or sewer is subject to a system development fee (SDF) calculated under NCGS 162A-205 to 162A-213. Water/sewer SDFs are administered by Durham Department of Water Management for city customers and by Durham County Utilities for county customers. Standard building, electrical, plumbing, and mechanical permit fees from the City-County Development Services fee schedule also apply. No transportation, parks, or school impact fees apply to ADUs in Durham.
North Carolina HB 436 (2017), codified at NCGS 162A-205 through 162A-213, authorizes local water and sewer providers to charge a one-time system development fee on new connections following a written analysis by a licensed engineer or financial expert. The City of Durham Department of Water Management collects water and sewer SDFs for parcels inside the city service area, and Durham County Utilities (also referred to as Capital Recovery Fees in the County Sewer Use Ordinance) collects them in the unincorporated service area. SDFs are charged per gallon-per-day equivalent based on meter size or number of fixture units. A small ADU sharing the primary dwelling's existing water/sewer service may not trigger an SDF; a new tap or a meter upsize will. Standard plan review, building, and trade permit fees in the Development Services Fee Schedule (effective July 2025) also apply. Durham does not levy transportation impact fees or parks impact fees, and there are no separate school impact fees in Durham County. ADUs in flood hazard areas are prohibited under UDO 5.4.2 and cannot receive permits.
Failure to pay SDFs or permit fees blocks permit issuance and final inspection. Unpaid utility connection charges become a lien on the property under NCGS 160A-314. SDF disputes are addressed under the appeal provisions in NCGS 162A-209. Confirm current fee amounts with the Durham Development Services Center at 919-560-1500 or Durham County Utilities at 919-560-7900.
Durham, NC
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Durham, NC
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Durham, NC
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Durham, NC
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Durham, NC
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Durham, NC
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See how Durham's adu impact fees rules stack up against other locations.
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