South Gate cannot charge any impact fees on ADUs under 750 sq ft, per Gov. Code §65852.2(f)(3)(A). ADUs 750 sq ft and larger may be charged impact fees only proportional to the primary dwelling's square footage. Standard building permit and plan check fees still apply.
Under Gov. Code §65852.2(f)(3), South Gate is prohibited from imposing impact fees, development fees, school facilities fees, or capacity charges on ADUs under 750 sq ft. For ADUs 750 sq ft or larger, impact fees must be charged proportionally to the square footage of the primary dwelling (e.g., if the main house is 2,000 sq ft and pays a $10,000 impact fee, a 1,000 sq ft ADU pays $5,000). South Gate may still charge: standard building permit and plan check fees based on construction cost; connection fees for new utility services proportional to the ADU; and school district fees only on ADUs 500 sq ft or larger under Ed. Code §17620. Utility connections: a separate water/sewer connection cannot be required for an ADU within an existing dwelling or accessory structure (Gov. Code §65852.2(f)(1)). South Gate's water and sewer services are provided by city Public Works; sanitation/refuse is contracted regionally in LA County.
Cities that charge prohibited impact fees on small ADUs are subject to California HCD enforcement and refund obligations. Applicants can challenge improper fees through South Gate's permit appeal process (SGMC Title 11) and via a complaint to HCD's ADU enforcement unit.
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See how other cities in Los Angeles County handle adu impact fees.
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