Oakland Municipal Code Art. II Fee Requirements and Procedures

A. The impact fees shall be calculated for each Development Project as follows, pursuant to the impact fee amounts as stated in the Master Fee Schedule in effect at the time of the Effective Date as specified in Section 15.72.040.A:

For construction of a single One-Family Dwelling Residential Facility (except those exempt under Section 15.72.040.C.5):

Impact Fee = Fees Per Square Foot x Additional Residential Square Footage

For projects proposing more than four (4) units on a parcel:

Impact Fee = Fees Per Square Foot x (Additional Residential Square Footage - Residential Square Footage of the four (4) smallest units)

B. The impact fee amount shall automatically be adjusted annually for inflation on July 1st beginning on July 1, 2021, by the City Administrator in accordance with the percentage increase or decrease from January to January in the residential building cost index published by Marshall and Swift, or if such index ceases to be published, by an equivalent index chosen by the City Administrator, with appropriate adjustments for regional and local construction costs as necessary. The adjustment shall be automatically effective whether or not the Master Fee Schedule has been amended to reflect the adjustment.

C. Prior to the effective date of the ordinance which added this paragraph to this Chapter, the impact fee was calculated using a formula based on Additional Housing Units rather than Additional Residential Square Footage. Where the affordable housing impact fees were calculated and assessed prior to this modification, the prior calculation shall remain in effect unless reassessment is required pursuant to Section 15.72.040.A and where no vested rights have been obtained. The City shall not grant any refund requests based on changes incorporated by the ordinance which added this paragraph to this Chapter. An applicant who previously paid the first installment of the fee for a project that meets the exemptions described in Section 15.72.040(C)(4)—(6) shall not be granted a refund but shall be exempt from payment of the second installment of the fee. An in-progress project of more than four (4) units on a parcel for which payment of the first installment of the fee has already been made shall complete payment of the second installment payment as originally assessed but with a reduction equivalent to the fifty percent (50%) second installment assessment for four (4) units based on the rate used at the time of assessment.

(Ord. No. 13853, § 2(Exh. B), 7-15-2025; Ord. No. 13365, § 4, 5-3-2016)

The impact fee amount and On-Site and Off-Site Affordable Housing Options shall be based upon the impact fee zone in which the Development Project is located as contained within the Master Fee Schedule and as set forth in the maps included in Section 15.72.140 of this Chapter.

(Ord. No. 13853, § 2(Exh. B), 7-15-2025; Ord. No. 13365, § 4, 5-3-2016)

Payment of the impact fees shall be due in one (1) installment prior to the issuance of a temporary certificate of occupancy or certificate of occupancy, whichever occurs first, for all or any portion of the Development Project associated with the building permit and shall be in the amount of one hundred percent (100%) of the impact fee.

No temporary certificate of occupancy or certificate of occupancy, whichever occurs first, may be issued for any Development Project subject to this Chapter unless the impact fee is paid to the City. The City shall deposit the impact fee in the Affordable Housing Trust Fund established under Chapter 15.62 of this Code.

As an alternative to payment of the impact fee set forth in this Chapter, an applicant for a Development Project subject to the impact fee may elect to comply with those requirements through the provision of on-site or off-site affordable housing units as permitted under Sections 15.72.100 and 15.72.110 of this Chapter.

(Ord. No. 13853, § 2(Exh. B), 7-15-2025; Ord. No. 13365, § 4, 5-3-2016)

A. Appeals to Seek a Reduction in or Waiver from the Impact Fees. An appeal of the impact fee may be submitted by the applicant of a Development Project for purposes of seeking a reduction in the amount of, or waiver from, the impact fee. Such appeals may be granted by the City Administrator under any one (1) of the following scenarios:

1. The Development Project is rendered infeasible by imposition of all or a portion of the impact fee because there are demonstrated special circumstances unique to the financing or economics of the Development Project and not generally applicable to other projects of similar type and size, and no feasible alternative means of compliance are available which would be more effective in attaining the purposes of this Chapter than the relief requested. For purposes of this paragraph, "infeasible" means incapable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, legal, social and technological factors;

2. The Development Project will not generate any need for affordable housing, or the increase in such need will be limited so as to justify a reduced impact fee;

3. The Development Project is subject to a higher impact fee than what would otherwise apply under normal circumstances solely and exclusively due to unusual delays, beyond the reasonable control of the applicant, related to an appeal, litigation and/or other similar circumstances;

4. The requirements of this Chapter have been incorrectly applied to a Development Project; and/or

5. That application of the requirements of this Chapter to a Development Project is unlawful under and/or conflict with federal, State, or local law and/or regulation, including constituting an unlawful taking of property without just compensation.

B. Applications for Appeals. Application for appeals to reduce or waive the impact fee must be made no later than ninety (90) days from the date of application for the building permit for the Development Project on a form provided by the City, and shall include payment of processing fees as established in the Master Fee Schedule. The burden of establishing by satisfactory factual proof the applicability and elements of this Section shall be on the applicant. The applicant must submit full information in support of their submittal as requested by the City Administrator. Failure to raise each and every issue that is contested in the application and provide appropriate supporting evidence will be grounds to deny the application and will also preclude the applicant from raising such issues in court. Failure to submit such an application shall preclude such person from challenging the impact fees in court. The City Administrator may require, at the expense of the applicant, review of the submitted materials by a third party.

C. The City Administrator shall deliver to the applicant a final, written determination on the appeal. The City Administrator's decision is final and not administratively appealable.

(Ord. No. 13853, § 2(Exh. B), 7-15-2025; Ord. No. 13365, § 4, 5-3-2016)

Editor's note— Ord. No. 13853, § 2(Exh. B), adopted July 15, 2025, amended the title of § 15.72.080 to read as herein set out. The former § 15.72.080 title pertained to reductions, waivers, and appeals.

A. Failure to comply with any of the provisions of this Chapter is declared to be prima facie evidence of an existing major violation and shall be abated by the City Administrator in accordance with the provisions of this Chapter. Any person in violation will be subject to civil penalties, civil action and/or other legal remedies.

B. If the applicant fails to comply with any provisions of this Chapter including failure to timely pay the impact fee, the City may take any of the following actions:

1. Withhold issuance of the building-related permits;

2. Record a special assessment or other lien or liens against the real property which is the subject of the Development Project for the amount of the impact fee;

3. Revoke or suspend the temporary certificate of occupancy and/or certificate of occupancy for the Development Project;

4. Take any other action necessary and appropriate to secure payment, with interest accruing from the date of nonpayment; and/or

5. Assess civil penalties against an applicant and/or associated parcel owner who fails to comply with this Chapter, including failure to pay the impact fees, pursuant to Chapter 1.08 of this Code.

Violations of this Chapter are considered to be "major" pursuant to Subsection 1.08.040.D. of this Code. The daily civil penalties described in Subsection 5. above shall continue until the violations are cured, including payment of the impact fee with accrued interest. Civil penalties established in this Chapter are in addition to any other administrative or legal remedy which may be pursued by the City to address violations identified in this Chapter.

In the event all affordable housing units required under the certification described in Sections 15.72.100 and 15.72.110 are not timely produced as required by this Chapter, the City Administrator may impose a charge on the applicant equal to one hundred fifty percent (150%) of the impact fee which would have been otherwise due and owing, together with interest accrued from the date of the first building permit issuance for the Development Project, and shall so notify the applicant. If this charge is not paid by the applicant within sixty (60) calendar days of the expiration of the applicable time period, the City may record a special assessment lien against the Development Project property in the amount of any charge and interest owed, and the City may revoke or suspend the certificate of occupancy for the Development Project use.

(Ord. No. 13853, § 2(Exh. B), 7-15-2025; Ord. No. 13365, § 4, 5-3-2016)