Los Angeles ADU City Fees and School Fees: A Complete Guide

Accessory 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.

What Are ADU Impact 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.

How Impact Fees Are Calculated

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 ADU City Fees

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:

1. Building Permit Fees: These are fees for processing the necessary permits for your ADU project. These typically cover plan checks, inspections, and administrative costs.
2. Park Impact Fees: This fee helps fund local parks and recreational facilities. It is considered an impact fee and may not apply to ADUs under 750 square feet.
3. Affordable Housing Impact Fees: Los Angeles charges this fee to support the development of affordable housing. Like park fees, it is waived for ADUs under 750 square feet but may apply to larger ADUs.
4. Utility Connection Fees: If your ADU requires a new connection to water, sewer, or electricity, you may be charged a connection fee. ADUs that are connected to the primary dwelling’s utilities may avoid this fee.

How to Avoid or Reduce City Fees

While Los Angeles imposes several fees on ADUs, there are ways to reduce or even avoid some of these costs:

• Build an ADU Under 750 Square Feet: ADUs that are smaller than 750 square feet are exempt from many impact fees, making this a cost-effective option for homeowners.
• Combine with a Junior ADU (JADU): If you're planning to build an ADU larger than 750 square feet, consider building a 749-square-foot ADU and pairing it with a Junior ADU (JADU). This allows you to maximize your space without triggering larger impact fees.

Los Angeles Unified School District (LAUSD) Developer Fees

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.

How School Fees Work for 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:

1. ADUs Under 500 Square Feet: ADUs that are 500 square feet or smaller are exempt from school fees. This exemption makes smaller ADUs a more affordable option for homeowners concerned about additional costs.
2. ADUs Over 500 Square Feet: For ADUs larger than 500 square feet, the LAUSD charges school fees based on the square footage of the assessable space. In 2024, the maximum residential developer fee rate for school facilities was set at $4.79 per square foot​. The actual rate may vary slightly based on your specific project and location.

Example Calculation for School Fees

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:

• 1,000 square feet × $4.79 per square foot = $4,790 in school fees.

Exemptions and Reductions

There are a few key exemptions and ways to reduce or avoid paying school fees for ADUs:

• ADUs Under 500 Square Feet: As mentioned earlier, ADUs smaller than 500 square feet are fully exempt from school fees.
• Exempt Uses: If your ADU is designated as affordable housing, senior housing, or for other specific uses, you may qualify for a reduced fee rate or an exemption. Make sure to consult with the LAUSD Developer Fee Program Office to confirm your eligibility.

How to Estimate Your Fees

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:

1. Consult the LA City Fee Schedule: Reach out to the Los Angeles Department of Building and Safety to get an estimate of city impact fees, building permit fees, and utility connection fees. Be sure to mention whether your ADU is under or over 750 square feet to get an accurate estimate.
2. Contact LAUSD: If your ADU is larger than 500 square feet, contact the LAUSD Developer Fee Program Office to calculate your school fees. Be prepared with the square footage of your ADU to get the most accurate estimate possible.
3. Legal Consultation: If you feel that you're being charged excessive or incorrect fees, consider consulting a lawyer to explore your legal options. You may be able to challenge certain fees, especially if they don’t align with state legislation regarding ADUs.

Conclusion

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.