Zoning Glossary

Impact Fee

Impact fees are charges levied by local governments on new development to help fund the expansion of public infrastructure — such as transportation networks, parks, and water and sewer systems — made necessary by demand from added housing units. They are among the most variable components of ADU permitting costs, differing significantly from city to city. Some states with comprehensive ADU legislation have enacted waivers for smaller ADU types, recognizing that reducing or eliminating impact fees makes ADU construction more financially accessible to individual homeowners.

ADU

In Practice

When budgeting for an ADU project, impact fees are a distinct cost category separate from building permit and plan check fees. In jurisdictions where state law has enacted impact fee waivers for ADUs, the savings can be substantial. In cities where impact fees apply without such a waiver, they can add meaningfully to the total cost of an ADU permit. Always verify the specific impact fee obligations for your city and ADU type early in the planning process — these fees are not always prominently disclosed on general ADU information pages.

Source: How Much Does It Cost to Build an ADU? (By City) · Verified April 5, 2026

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Source: PropertyZoned Zoning Guide — How Much Does It Cost to Build an ADU? (By City). Last verified April 5, 2026.

Last updated: April 5, 2026
Impact Fee — Zoning Term Definition | PropertyZoned