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Development Standards

Development Impact Fees

Development Standards

Development Impact Fees

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Development impact fees are set by the Department of Utilities to help fund utilities infrastructure for new development in the city of Sacramento.

Because California law prevents utility rates from being used for new construction infrastructure, development impact fees are needed to help fund new utilities infrastructure for development in the city.

Development impact fees are important because they distribute the costs related to water, stormwater and wastewater infrastructure to all potential developments -- rather than any one project having to pay for their own private utilities systems.

Without development impact fees, individual developers would pay disproportionate out-of-pocket costs for City utilities infrastructure in a new development.

How development impact fees are calculated

Fee schedules are used to calculate the impact fees for development projects and final amounts are calculated by a DOU plan reviewer prior to building permit approval.

DOU impact fees are added to the building permit invoice and collected by the City's Community Development Department when the permit is issued.

Developers can get a fee estimate by emailing DOUDevelopmentReview@cityofsacramento.org with as much project specific information as possible, such as types of use, square footage for each use, and amount of increased stormwater imperviousness.

Fall 2023 adjustments

Adjustments to development impact fees were adopted by City Council in fall 2023. The fee adjustments will be phased in over four years and will be in full effect Jan. 22, 2027.

Exemptions

Exemptions to the fee adjustments were developed to reduce the impacts on projects that were in the City’s development process at the time of adoption.

The exemptions include:

PERMIT APPLICATIONS ACCEPTED FOR PROCESSING

Projects with a building permit application that has been accepted for processing by the City and that have paid application fees prior to Jan. 22, 2024 are not subject to the fee adjustments, provided this exemption does not apply to building permits that have expired;

SB 330 APPLICATIONS

Housing development projects that are covered by valid SB 330 applications submitted prior to Jan. 22, 2024 are not subject to the adjusted fee for five years after Jan. 22, 2024, and;

GRADING PERMIT OR SUBDIVISION IMPROVEMENT PLAN APPLICATIONS

Projects with submitted grading permit applications or subdivision improvement plan applications that have been accepted for processing by the City and that have paid application fees prior to Jan. 22, 2024, or grading permit applications or subdivision improvement plans approved prior to Jan. 22, 2024, are not subject to fee adjustments for five years after Jan. 22, 2024.

This exemption does not apply to projects with grading permits or subdivision improvement plans that are inactive as of Jan. 22, 2024. A grading permit or subdivision improvement plan is inactive if there have been no inspections conducted, or permits applied for, reviewed or issued by the City within the project area for one year.
For the purposes of this exemption, a project area is defined as the parcels in the grading permit or subdivision improvement plan that include rough or final grading detail, excluding stockpile grading

Commercial fee schedule

Residential fee schedule

Nexus Study

Contact us

For questions or more information about development impact fees, call 916-808-7890 or email DOUDevelopmentReview@cityofsacramento.org.

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