Montgomery does not impose a general residential impact fee on accessory dwelling units. Alabama law does not broadly authorize municipal residential impact fees outside specific statutory grants. ADU costs consist of standard building, electrical, plumbing, and mechanical permit fees through the Inspections Department, plus connection fees from the Montgomery Water Works & Sanitary Sewer Board and Alabama Power if a new service is required.
Alabama Code Title 11 does not grant municipalities general authority to impose residential impact fees comparable to the California Mitigation Fee Act (Gov. Code §66000). The City of Montgomery does not charge a general ADU impact fee, school impact fee, transportation impact fee, or parks impact fee. ADU costs consist of: (1) Building permit fees set by the Montgomery Inspections Department, calculated on construction valuation per the fee schedule in Code of Ordinances Chapter 5 (Buildings); (2) Separate electrical, plumbing, and mechanical/gas permit fees; (3) Plan-review fees; (4) Zoning compliance review through the Community Development Department's Land Use Division. Utility connection costs are charged separately: the Montgomery Water Works & Sanitary Sewer Board sets water and sewer tap fees, Alabama Power sets electric service charges, and Spire Energy handles natural-gas service. ADUs that share an existing service with the principal dwelling typically avoid new connection fees. Montgomery County does not impose school impact fees. Stormwater and street-cut fees may apply if the ADU triggers added impervious surface or a utility cut in the public right-of-way. Property tax on the new improvement is reassessed by the Montgomery County Revenue Commissioner at the next assessment cycle.
Failure to pay required permit fees prevents permit issuance. Unpaid Water Works or Alabama Power connection fees prevent service activation. Building without permits triggers after-the-fact fees and stop-work orders from the Inspections Department, plus accruing daily fines under the city's general penalty provisions in the Code of Ordinances.
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See how Montgomery's adu impact fees rules stack up against other locations.
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