Chapter 3.40 — DEVELOPMENT IMPACT FEES PROGRAM

The fees established by this chapter shall be calculated, adopted, and may be adjusted by implementing resolutions. In the future, the City Council may establish new public facility categories and fee categories by amending this chapter and adopting subsequent implementing resolutions. For each public facility category established by this chapter, the Finance Director shall create in the City treasury a separate and distinct "fee fund," subject to the accounting requirements of the Mitigation Fee Act. [3 ]

• A. Development Impact Fees Program.

  1. Public safety facilities.

  2. Parks facilities.

  3. General government facilities.

  4. Storm drain.

  5. Transportation.

  6. Water capacity.

  7. Commercial linkage fee for affordable housing.

• B. To maintain the program's financial sustainability and relevance, the City will apply an annual adjustment to the Development Impact Fees Program, reflecting changes in construction costs. Annual adjustments will be based on the Consumer Price Index for All Urban Consumers (CPI-U), Los Angeles-Long Beach-Anaheim; published by the U.S. Bureau of Labor Statistics.

• (Ord. 1212, 2/24/2026)

• A. Each applicant for City approval of a development project (including applications for a change of use) shall pay impact fees to the City, as allowed by law, in accordance with the amounts set forth in implementing resolutions, unless the applicant establishes, to the satisfaction of the Director, entitlement to a fee credit, a fee adjustment, or a fee exemption or exception. The commercial linkage fee is only applicable to nonresidential development projects.

• B. The obligation to pay impact fees pursuant to this chapter shall not replace an applicant's obligation to mitigate development project impacts in accordance with state or local law.

• C. Fees paid are refundable in accordance with the Mitigation Fee Act. (Ord. 1212, 2/24/2026)

3. Editor's Note: See Government Code §§ 66000 through 66025.

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City of Paramount, CA § 3.40.030

REVENUE AND FINANCE

§ 3.40.060

• A. Except as otherwise set forth in this chapter, the fee to be paid for each development project based on square footage within a development project shall be the amount of the fee in effect, pursuant to the implementation resolution, at the time that full payment is due to the City.

• B. In the event that a previous partial fee payment is made for any development project, the full fee to be paid for that project shall be the amount of the fee in effect, pursuant to the implementing resolution, at the time that full payment is made to the City, minus the amount of the previous partial payment.

• C. The applicant shall have the burden of providing the amount of any fee previously paid, the date on which the payment was made, and the development project for which the payment was made.

• (Ord. 1212, 2/24/2026)

• A. The fee for each development project based on square footage within a development project shall be paid in full prior to either the final inspection or issuance of certificate of occupancy required for that development project, unless otherwise authorized by the Mitigation Fee Act.

• B. No City official or agency may certify final inspection or issue a certificate of occupancy for a development project, or otherwise allow occupancy of a development project, until the fees required by this chapter with respect to such unit are paid in accordance with this section.

• (Ord. 1212, 2/24/2026)

The following development projects are exempt from the requirement to pay fees, as set forth below:

• A. Reconstruction of, or residential additions to, single-family dwellings.

• B. Accessory dwelling units (ADUs) of less than 750 square feet.

• C. A development project shall be exempt from the requirements of this chapter if the applicant provides documentation, to the satisfaction of the Planning and Building Director, of federal, state, or local law (including a duly adopted resolution of the City Council) which establishes entitlement to the exemption.

• (Ord. 1212, 2/24/2026)

• A. An applicant for a development project may apply to the Planning and Building Director for a modification of that fee based on the absence of a reasonable relationship between the impact on public facilities of that development project and either the amount of the fee or the type of public facilities to be financed. The application for a fee modification shall be submitted a minimum of 14 days prior to payment.

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City of Paramount, CA

PARAMOUNT CODE

§ 3.40.060

§ 3.40.060

• B. The fee categories shall be considered individually; thus, may occur that a fee adjustment or waiver is made in one category and not another.

• C. The applicant bears the burden of proof in presenting substantial evidence to support a request for modification for a fee adjustment or waiver of a fee.

• (Ord. 1212, 2/24/2026)

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City of Paramount, CA