City of Pasadena Announces Reduced Fees to Support ADU Construction and Affordability

PASADENA, Calif.- In a move to encourage Accessory Dwelling Unit (ADU) production and promote affordability, the City of Pasadena has approved a significant reduction in permitting and plan check fees for Accessory Dwelling Units (ADUs) on single-family sites. These fee reductions are intended to lower out-of-pocket expenses, enabling more homeowners to build additional units that serve both market and affordable housing needs.

Effective immediately, applicants using the City's pre-reviewed ADU Standard Plans or entering into affordability agreements with the Housing Department can now receive a 50% reduction in plan check fees. Permit fees such as the General Plan Maintenance Fee and Technology Fee are fully waived for ADUs using Standard Plans or which have affordability agreements, while ADUs up to 900 square feet receive a 25% reduction in these fees. Additionally, the Construction & Demolition Performance Deposit is now a flat, refundable $1,000 for all ADUs.

Further fee reductions, which require an ordinance, are expected to go into effect in July. The Residential Impact Fee (RIF) exemption will be expanded to apply to ADUs up to 900 square feet, and those with a Housing Agreement are fully exempt from the RIF regardless of size. Further, the Construction Tax, which is a fee charged upon permit issuance, will be waived for ADUs using Standard Plans or which have affordability agreements, and reduced by 25% for ADUs that are up to 900 square feet.

These fee adjustments mean that the majority of ADUs in Pasadena will benefit from an approximately 25% reduction in overall permitting and plan check costs, while those that utilize the City's Standard Plans or enter into a Housing Agreement can see savings of over 50% compared to the current fee structure. These efforts reflect Pasadena's ongoing commitment to increasing housing supply, promoting affordability, and supporting sustainable, community-focused development.

For more information, including how to apply for ADU permits or access the Standard Plans, visit: CityofPasadena.net/planning/planning-division/community-planning/accessory-dwelling-units/