Monterey, CA Accessory Structures: ADU Impact Fees (2026)

Section 38-112.6(E)(4) tracks the state ADU impact-fee framework by barring the City from imposing any impact fee on an accessory dwelling unit under 750 square feet. The section defines 'impact fees' for this purpose as the fees specified in California Government Code Sections 66000 and 66477, the general development-fee and park-fee statutes, but the exemption does not reach utility connection fees or capacity charges, which are addressed separately.

Once an ADU's floor area reaches 750 square feet or more, impact fees are no longer waived, but they are not charged at the same flat rate as a full new dwelling either: the City charges them proportionately, scaled to the ADU's square footage measured against the square footage of the primary single-family or multifamily dwelling on the parcel. That proportional approach means a 900-square-foot ADU attached to a much larger house pays a fraction of what a full-size new unit would owe, rather than the complete fee schedule.

Utility connection fees sit outside this impact-fee exemption. A new or separate utility connection, including a separate sewer lateral, generally is required for an ADU unless a licensed plumber's inspection confirms the existing lateral already meets City standards, and a connection fee or capacity charge proportional to the ADU's size or drainage fixture unit value can still apply. Junior ADUs and ADUs converted from existing space within a single-family home or accessory structure are exempt from that separate utility-connection requirement altogether, unless the ADU is built as part of a brand-new single-family dwelling.