Schedule a free appointment with one of our ADU experts.
Book a callAccessory Dwelling Units (ADUs) have become a popular solution for homeowners in Los Angeles who want to increase their property value and provide additional housing options. However, navigating the various city fees and school fees associated with building an ADU can be complex. In this article, we will break down the key fees you need to consider when constructing an ADU in Los Angeles, with a focus on city impact fees and school fees.
Impact fees are charges imposed by local government agencies to offset the costs of public services and infrastructure that are impacted by new development projects. For ADUs, these fees help fund public amenities such as schools, parks, and transportation improvements that may be affected by the increased density.
In California, ADU impact fees are governed by state legislation, particularly AB 68, which sets out how these fees should be applied. The key takeaway from this legislation is that ADUs under 750 square feet are exempt from impact fees, while ADUs larger than 750 square feet may be subject to reduced fees that are proportional to their size relative to the main dwelling.
For ADUs larger than 750 square feet, impact fees are calculated based on their size in relation to the primary residence. For example, if you build a 1,000-square-foot ADU on a property with a 2,000-square-foot main house, you can expect to pay 50% of the impact fees that would be charged for a single-family home in that area.
Impact fees can be described in various ways across different jurisdictions. For example, some cities might refer to them as "mitigation fees" or "development fees." This makes it important to carefully review your local fee schedule to identify which fees apply to your ADU project.
Los Angeles, like many other cities in California, charges several fees for building ADUs. The Department of Building and Safety and other city departments manage the assessment and collection of these fees. Below are some of the common fees homeowners should be aware of when planning to construct an ADU in Los Angeles:
While Los Angeles imposes several fees on ADUs, there are ways to reduce or even avoid some of these costs:
When constructing an ADU in Los Angeles, school fees are another important consideration. School districts are allowed to levy fees on new residential construction projects to help fund school facilities, and this includes ADUs.
According to the Los Angeles Unified School District (LAUSD) Developer Fee Policy, ADUs greater than 500 square feet are subject to school impact fees. These fees are designed to offset the cost of expanding or maintaining school facilities that may be affected by new residential developments, including ADUs.
Here’s how school fees apply to ADUs in Los Angeles:
Let’s say you plan to build a 1,000-square-foot ADU in Los Angeles. Based on the 2024 LAUSD fee schedule, the school fee would be calculated as follows:
There are a few key exemptions and ways to reduce or avoid paying school fees for ADUs:
Since impact and school fees vary based on location, size, and project specifics, estimating your fees early in the planning process is crucial. Here’s how you can estimate the fees for your Los Angeles ADU:
Building an ADU in Los Angeles can come with various city and school fees, but there are also ways to minimize or avoid these costs. Smaller ADUs, particularly those under 750 square feet, are exempt from many fees, including impact fees. Additionally, ADUs under 500 square feet are exempt from school fees.
By understanding the types of fees you may encounter and working with local authorities to get accurate estimates, you can plan and budget more effectively for your ADU project. Keep in mind that each project is unique, so it’s always a good idea to consult with both the Los Angeles Department of Building and Safety and the LAUSD to get the most accurate and up-to-date information for your specific situation.
Not sure where to start with your ADU project?