Turning your garage into a living space can be a great way to make some extra money, house family members, or just have more room for yourself. But one of the trickiest parts? Those city fees.
ADU rules and fees are changing quickly. Just this past year, I’ve chatted with city planners in over 30 places. Many cities are starting to have more ADU-friendly fees. For example, Los Angeles and San Jose now offer fee waivers for some ADUs, and other cities are looking into tiered fees based on how big the unit is.
In this guide, I’ll break down what city fees will average when converting a garage into an ADU, share some new laws affecting these fees, and give you tips on how to handle this part of your project.
Before we jump into details, remember that fees can vary a lot depending on if you’re converting an attached or detached garage. Detached garages usually have extra fees for things like utility connections and zoning. In my experience, these extra fees can add 10-15% more compared to converting an attached garage.
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Types of City Fees
From what I’ve seen and the data I’ve gathered, city fees for garage conversion ADUs usually fall into a few main categories. Knowing these can help you budget better and avoid surprises.
1. Permit Fees
Building Permits
Building permits are the backbone of any ADU project. They ensure your project meets local building codes. I’ve seen these fees range from $500 to $5,000, depending on the city and project size.
Electrical Permits
Electrical permits cover all the new wiring and lighting. These fees usually ranged from $150 to $500. The cost depends on how much electrical work is needed and the local fees.
For instance, in San Francisco, we had to upgrade the electrical panel for a new ADU. This pushed our electrical permit fee from the base $200 up to $450 because of the extra inspections.
Plumbing Permits
Plumbing permits are needed for adding or changing plumbing systems. These fees generally run between $100 and $400. However, some cities bundle plumbing permits with building permits for ADU projects, which can save money.
Mechanical Permits
Mechanical permits cover HVAC systems, which are key for making your ADU comfortable. These fees typically range from $100 to $300. But some cities offer discounts for energy-efficient systems.
For example, in Los Angeles, we got a 20% discount on our mechanical permit fee by installing a high-efficiency heat pump system.
2. Plan Review Fees
Before you start building, cities need to review your ADU plans to catch any issues early and make sure everything follows zoning laws and building codes.
In my 20 years of working on ADUs, I’ve seen plan review fees usually fall between 65% and 80% of the building permit fee. So, if your building permit costs $1,000, you’re looking at an extra $650 to $800 for the plan review.
Some cities now offer expedited plan reviews for an extra fee. For a recent project in San Diego, we paid an extra $1,000 for a faster review, cutting the wait time from 8 weeks to just 2. My client wanted to start renting out the ADU quickly, so the extra cost was worth it.
One big tip: always budget for at least one round of revisions.
3. Impact Fees
Impact fees are charges that cities impose to help cover the cost of additional strain on public infrastructure and services due to new development. I’ve seen these fees change a lot. Impact fees can range from $2,000 to $20,000, depending on the city and the type of fee. However, many cities are rethinking their approach to impact fees for ADUs, seeing them as a way to help with housing shortages.
School Impact Fees
These fees contribute to the local school district, especially if the ADU could house school-aged kids. Typically, school impact fees for ADUs range from $1 to $5 per square foot.
For example, in Los Angeles, school impact fees for ADUs have been waived completely to encourage ADU development.
Transportation Impact Fees
These fees improve local roads, public transportation, and other infrastructure affected by the new ADU. From my projects in various cities, transportation impact fees range from $1,000 to $5,000 for an ADU.
Parks and Recreation Fees
Some cities charge fees to support parks and recreational facilities. Typically, these range from $500 to $2,000 for an ADU.
Emerging Trends in Impact Fees
In recent years, I’ve seen a growing trend of cities reducing or waiving impact fees for ADUs. For example, in San Jose, all impact fees were waived for ADUs under 750 square feet to help with housing shortages.
Some cities are also using sliding scale fees based on ADU size. This method recognizes that smaller units have less impact on infrastructure and services.
Another trend is deferring impact fee payments. In Sacramento, we were able to spread out impact fee payments over 10 years, which made upfront costs much easier for my client.
Impact fee structures can change quickly. I always tell my clients to check with the local planning department for the latest information, as fees from last year might be quite different now.
4. Utility Fees
Utility fees can really add up when you’re converting a garage into an ADU. Often overlooked in early budgets, these fees are essential for connecting your ADU to necessary services. Let’s break them down.
Water Connection Fees
Water connection fees cover the cost of hooking up your ADU to the city’s water supply. Typically, these fees range from $1,000 to $5,000.
In San Diego, for a recent project, we initially faced a $4,500 water connection fee. However, we reduced this to $3,000 by using water-efficient fixtures. Many cities now offer discounts for water-saving designs.
Fees can vary based on whether you’re using an existing water line or need a new connection. For example, in Sacremento, we saved nearly $2,000 by tapping into the main house’s existing water line.
Sewer Connection Fees
Sewer connection fees are for linking your ADU to the municipal sewer system. These generally range from $1,500 to $7,000.
One big factor here is the capacity of the existing sewer system. In San Jose, we initially faced a $6,000 fee due to capacity concerns. But after a flow test showed the system could handle the load, we negotiated it down to $3,500.
Some cities now combine water and sewer connection fees for ADUs, which can save you money. In Sacramento, this combined fee structure saved my client about 20%.
Electrical Connection Fees
Electrical connection fees cover the cost of extending electrical services to the ADU. These typically range from $500 to $2,000.
The cost can vary depending on the capacity of the existing electrical panel. In Los Angeles, we avoided a $1,500 fee for new electrical service by upgrading the main house’s panel for $800 instead.
I’ve also seen cities becoming more accepting of solar panels and battery storage systems.
Gas Connection Fees
If your ADU needs a gas connection for heating or cooking, expect fees from $500 to $2,000. But many places are moving toward all-electric ADUs. In Los Angeles, we skipped gas connection fees altogether by using electric appliances and a heat pump for heating and cooling. This not only saved money but also aligned with the city’s climate goals, speeding up permit approval.
Utility Fee Strategies
One strategy I’ve used successfully is to time ADU construction with planned utility upgrades for the main house. In San Francisco, we coordinated ADU development with a main house remodel, upgrading the property’s utility connections at the same time. This saved nearly $3,000 in combined utility fees.
Another tip: check if your city offers fee deferrals for ADUs. In San Jose, we deferred utility connection fees for five years, which significantly reduced upfront costs for my client.
Always remember to check with your local planning department for the latest information on fees and potential savings strategies. Fees can change, and staying informed can save you a lot of money.
5. Inspection Fees
Inspections are crucial for making sure your ADU meets building codes and safety standards. Here are the common types of inspections you’ll need:
- Foundation Inspection: This is the first check, done after the foundation is poured but before backfilling.
- Framing Inspection: Happens after the roof, wall, and floor framing are complete, but before insulation or drywall.
- Electrical Rough-In Inspection: Conducted after installing electrical wiring but before closing up the walls.
- Plumbing Rough-In Inspection: Similar to electrical, done before walls are closed.
- Mechanical Rough-In Inspection: Checks HVAC system installation before closing up the walls.
- Insulation Inspection: Performed after installing insulation but before drywall.
- Drywall Inspection: Done after hanging drywall but before taping and mudding.
- Final Inspection: The last, comprehensive inspection before you can move in.
Costs Associated with Each Inspection
Inspection fees can range from $100 to $500 each, depending on the city and project complexity. Tthe average total cost for all inspections on a garage conversion ADU is between $1,000 and $2,500.
For example, in San Francisco, each inspection cost $300, adding up to $2,400.
Strategies to Minimize Inspection Costs
- Bundled Inspections: Some cities let you combine certain inspections.
- Pre-Inspection Consultations: Paying for a pre-inspection consultation can save money long-term. In Los Angeles, we paid $200 for a consultation that helped us avoid costly re-inspection fees.
- Virtual Inspections: Due to the pandemic, some cities offer virtual inspections for certain stages.
- Inspection Scheduling Efficiency: Schedule strategically. In Los Angeles, we lined up multiple elements for inspection on the same day, reducing separate inspection fees.
Common Inspection Pitfalls to Avoid
Here are some common issues that can lead to failed inspections and extra fees:
- Insufficient Documentation: Always have approved plans and permits on-site and accessible.
- Premature Inspection Calls: Make sure all work is complete before calling for an inspection. In San Jose, a premature framing inspection call resulted in a $150 re-inspection fee.
- Deviations from Approved Plans: Get approval for any changes before the inspection. In Sacramento, unapproved electrical changes caused a failed inspection and a week’s delay.
- Overlooking Minor Details: Small issues like missing GFI outlets or smoke detectors can lead to failed inspections. A pre-inspection checklist can catch these.
- Accessibility Issues: Ensure inspectors have easy access to all areas. In one project, we had to pay for a re-inspection because the attic access was blocked.
By being thorough in preparation and strategic in scheduling, you can minimize the cost and stress of inspections in your garage conversion ADU project.
6. Other Potential Fees
After two decades of working on ADU projects, I’ve encountered several additional fees that can sneak up on you. Knowing about these costs upfront can help you budget better and avoid surprises.
Zoning Fees
If your ADU project needs a zoning variance or special permit, zoning fees can range from $500 to $5,000.
For example, in one project we needed a setback variance for an ADU, which cost $2,500. But some cities are becoming more ADU-friendly.
Environmental Fees
Environmental fees might be charged to assess the impact of your ADU on the local environment, including fees for environmental impact studies or mitigation measures. These are more common in environmentally sensitive areas or cities with strict sustainability rules.
In coastal San Diego, a garage conversion project required a $1,500 fee for a stormwater management plan review. On the bright side, cities are starting to offer incentives for green building designs.
Historic Preservation Fees
If your property is in a historic district or has historic significance, you may face historic preservation review fees, which can range from $500 to $3,000.
In West Hollywood, we had a $2,500 fee for a historic preservation review during a garage conversion. We managed to cut this fee in half by showing that our design kept key historical features intact.
Parkland Dedication Fees
Some cities charge parkland dedication fees for new dwelling units, including ADUs. These fees help offset the impact of more people using local parks and open spaces. Typically, these fees range from $1,000 to $5,000.
Technology Fees
Some cities are now charging technology fees to cover the costs of digital plan review systems and online permit processes. These fees are usually small, ranging from $50 to $200.
In San Jose, we paid a $100 technology fee, but the streamlined online system saved us time and reduced other costs.
Street Use Permits
If your project needs to use public streets for construction equipment or materials, you might need a street use permit. These fees vary widely based on the duration and extent of use.
In Santa Monica, we paid $500 for a two-week street use permit for a dumpster and material deliveries. By carefully planning our construction schedule, we minimized the street use duration, saving on additional fees.
Strategies for Managing Additional Fees
Early Research
Always research potential fees early in the planning process. Many cities now offer online fee estimators that can be very helpful.
Pre-Application Meetings
Scheduling a pre-application meeting with the city planning department can provide valuable insights into potential fees and ways to minimize them.
Explore Fee Waivers
Some cities offer fee waivers or reductions for certain types of ADUs, such as affordable housing or senior living. In Los Angeles, we secured a 50% fee reduction by designating the ADU as an affordable rental unit.
Bundle Permits
Try to bundle permits to reduce overall fees. In Portland, we saved about $500 by submitting building, electrical, and plumbing permits together.
Consider Timing
Fees are often adjusted annually. By timing permit applications just before fee increases, we’ve saved clients significant amounts.
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Conclusion
Figuring out city fees for garage conversion ADUs can be tricky, but with the right planning and knowledge, it’s totally doable.
Keep in mind that while these fees can be a big upfront cost, they ensure your ADU is safe, legal, and adds long-term value to your property. Always include these costs in your overall budget and return on investment calculations.
For a detailed cost breakdown tailored to your location and project, talk to local ADU specialists and city planning departments. The rules and fees for ADUs are always changing, often making the process easier and cheaper for homeowners.
By staying informed and being strategic, you can handle the fee landscape effectively and successfully complete your garage conversion ADU project.
