Council restores ADU impact fee collection with phased waivers starting July 1

Sierra Madre — The City Council on June 9 adopted a resolution to resume charging public facility fees for accessory dwelling units (ADUs) larger than 750 square feet, and established a phased waiver schedule to reduce the immediate burden on homeowners.

Director Lynn Wolf told the council the resolution would take effect July 1, 2026 and apply to applications submitted on or after that date. "This resolution would take effect on July 1st, 2026 and be enforceable on any new applications received on or after that date," Wolf said.

Under the adopted schedule, the first qualifying ADU receives a 75% waiver of the applicable public facility fee, a second ADU on the same property receives a 25% waiver, and the third and any additional ADUs receive no waiver. The fee calculation will be proportional to ADU size relative to the primary unit, per state law.

Councilors debated whether junior ADUs (JADUs — typically up to 500 sq ft and often inside an existing dwelling) should count toward the waiver schedule. Supporters of excluding JADUs said many JADUs are conversions of existing space and that including them could penalize homeowners who had previously added a JADU. Opponents said treating JADUs differently may invite complexity. The council voted to adopt the resolution with the highlighted JADU language removed so that JADUs do not count toward the waiver tally.

Staff provided statistics to inform the council: 61% of ADU applications over the past six years have been 750 sq ft or less and therefore would not be subject to the fee; the median single‑family dwelling size citywide is about 1,833 sq ft and the average ADU applied for was 1,792 sq ft in the recent application set, with a proportional average ADU‑to‑primary dwelling size ratio reported at about 33.7%.

What happens next: The resolution becomes effective July 1; applicants submitting ADU permit applications on or after that date will be charged the proportional fee (if their ADU exceeds 750 sq ft) with the waiver schedule applied at final fee assessment.