Development Impact, Administrative and Housing In-Lieu Fee Adjustment

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In Fall 2024, City Council unanimously adopted the City’s proposed fee adjustment for development impact fees, administrative fees and inclusionary housing in-lieu fees – which weren’t updated since the early 2000s – to bring them in line with current City needs. The fee adjustment will help ensure that future development in San Marcos continues to support the quality of life expected in our community.

Timeline of fee adjustment

The fee adjustment will take effect on March 3, 2025. Development impact and inclusionary housing in-lieu fees are largely paid by developers. Any project application submitted after March 3, 2025, will be subject to the new development impact fees and updated inclusionary housing in-lieu fees. Current active project applications will remain subject to current fees until March 2027.

Administrative fees are largely paid by developers and only affect residents if they are seeking a permit to build or rebuild a home. Developers and residents who’ve paid their project administrative fees before March 3, 2025, will not be subject to the fee adjustment.

New fee amounts

Development impact fees will be:

$6.70 per square foot for a single-family home
$7.64 per square foot for multi-family
$10.52 per square foot for office
$10.93 per square foot for commercial
$6.73 per square foot for industrial

Inclusionary housing in-lieu fees will be $15 per square foot for residential space. Approximately 186 administrative fees will see an increase across applications that are associated with permitting, inspections, entitlements and other building related regulations. New administrative fee schedules will be posted to the City website in advance of the effective date currently anticipated early in the new year.

What are these fees?

Development impact fees: Largely paid by developers, these fees support the cost of public facilities and improvements like transportation facilities, parks, recreation and trail facilities, fire and EMS facilities, habitat conservation, storm drainage facilities, etc.

Inclusionary housing in-lieu fees: Largely paid by developers, these fees support the development of future affordable housing by collecting fees from developers, in-lieu of developing affordable housing on site, to meet state guidelines for regional housing needs.

Administrative fees: These fees are largely paid by developers and only affect residents if they are seeking a permit to build or rebuild a home. The fees support the development of future affordable housing by collecting fees from developers, in-lieu of developing affordable housing on site, to meet state guidelines for regional housing needs.

If you have questions about the new fees, please email communications@san-marcos.net. To receive updates about the fee adjustment, sign up for e-news alerts.