Lexington-Fayette does not levy a general municipal impact fee on residential development; Kentucky law (KRS 65.7625 etc.) gives local governments narrow impact-fee authority that LFUCG has not expanded for ADUs. ADUs pay standard building permit fees under LFUCG Code Section 5-29 ($0.10 per square foot, $150 minimum), plus Lexington-Fayette Urban County Water and Sewer connection fees, electrical permit fees, and any HVAC permit fees. No transportation, parks, or school impact fee applies.
ADU fees in Lexington are limited compared to many western and California jurisdictions. The fee stack: (1) Building permit fee under LFUCG Code Section 5-29: $0.10 per square foot of project with a minimum of $150 - so a 700 sq ft ADU pays approximately $150 minimum but typically $300-$500 once electrical, plumbing, and mechanical sub-permits are included; (2) Sewer connection fee, currently around $1,500-$3,000 depending on lot location, under LFUCG sanitary sewer ordinance; (3) Water connection fee through Kentucky-American Water (the regulated utility serving Lexington), typically $1,500-$3,000 for a separate 5/8-inch service, zero if sharing the main house meter; (4) Storm water fee tied to impervious cover. There is no general transportation, parks, library, fire, or schools impact fee in Fayette County. Kentucky Revised Statutes 65.7621-65.7649 authorize impact fees only with extensive procedural requirements, and Fayette has not adopted them for general residential. Fayette County Public Schools does not assess impact fees. The 2023 ADU ZOTA did not waive any of the standard charges. Pre-approved plans are not yet available through the Division of Planning but were referenced as a possible future incentive in the CivicLex ADU policy work.
Permits will not issue until all fees are paid in full. Construction without payment is a violation under LFUCG Code Section 5-29 with civil penalties typically $150-$500 per day plus the doubled after-the-fact permit fee. Unpaid utility connection fees can result in service refusal or termination by Kentucky-American Water (a regulated utility) and the LFUCG Sewer Division.
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See how Lexington's adu impact fees rules stack up against other locations.
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