Chapter 4.19 — TRAFFIC REDUCTION AND TRANSPORTATION IMPROVEMENT FEE

This chapter may be designated and cited as "the traffic reduction and transportation improvement fee ordinance."

(Ord. 7076 § 2 (part), 2006: Ord. 5517 § 1 (part), 1981)

A.

"New industrial use" means any net new industrial construction, including but not limited to additions, expansions, or enlargements of industrial structures, and the conversion of a preexisting structure to an industrial use.

B.

"New office use" means any net new office/commercial construction, including but not limited to additions, expansions, or enlargements of office/commercial structures, and the conversion of a preexisting structure to an office/commercial use.

C.

"New retail use" means any net new retail construction, including but not limited to additions, expansions, or enlargements of retail structures, and the conversion of a preexisting structure to a retail use.

D.

"New residential use" means any new construction of residential units, including but not limited to the addition of new unit(s), and the conversion of a preexisting nonresidential structure to residential use.

E.

"New medical office use" means any net new medical office construction, including but not limited to additions, expansions, or enlargements of medical office structures, and the conversion of a preexisting structure to a medical office use.

F.

"New hospital use" means any net new hospital construction, including but not limited to additions, expansions, or enlargements of hospital structures, and the conversion of a preexisting structure to a hotel/motel use.

G.

"New lodging use" means any net new hotel/motel construction, including but not limited to additions, expansions, or enlargements of hotel/motel structures, and the conversion of a preexisting structure to a hotel/motel use.

H.

"New research and development use" means any net new research and development construction, including but not limited to additions, expansions, or enlargements of research and development structures, and the conversion of a preexisting structure to a research and development use.

(Ord. No. 7458, § 2, 11-3-2025; Ord. 7076, § 2, 2006)

There is created a special fund to be known as the "traffic reduction and transportation improvement fund" to account for fees paid pursuant to this chapter.

(Ord. 7076 § 2 (part), 2006: Ord. 5517 § 1 (part), 1981)

A.

Except as specifically excepted in this chapter, all new development shall pay into the traffic reduction and transportation improvement fund a fee in an amount as set forth below. The fee shall be paid upon the issuance of a certificate of occupancy or the final inspection, whichever occurs last.

New industrial use: $1.15 per square foot.

New office Use $7.57 per square foot.

New retail use: $11.89 per square foot.

New single family residential use: $5,202 to $5,722 per new unit.

i.

No fees shall be paid for new accessory dwelling units (ADUs) that are 900 square feet or less. ADUs over 900 square feet shall pay a fee proportional to the size of the main dwelling structure.

New multi-family residential use: $2,158 to $2,352 per new unit.

i.

No fees shall be paid for new ADUs that are 900 square feet or less. ADUs over 900 square feet shall pay a fee proportional to the size of the main dwelling structure.

New medical office use: $20.66 per square foot.

New hospital use: $1.62 per square foot.

New lodging use: $1,437 per inhabitable room.

New research and development use: $5.15 per square foot.

B.

The building and code enforcement administrator shall not issue a certificate of occupancy or the final inspection for new development until the fee required by this chapter has been paid.

C.

Fee Schedule Escalation. The traffic reduction and transportation improvement fee may annually escalate by the same percentage as the Construction Cost Index (CCI). Such escalation, if any, shall be presented annually prior to July 1st of the first year after the effective date of the ordinance enacting this chapter, and each year thereafter for approval by the council.

(Ord. No. 7458, § 3, 11-3-2025; Ord. No. 7403, § 1, 10-3-2022; Ord. No. 7309, § 2, 9-25-2017; Ord. 7076, § 2, 2006; Ord. 6241, § 1, 1988; Ord. 5517, § 1, 1981)

The following new developments are excepted from payment of the fee required by this chapter:

A.

The reconstruction of any building destroyed or damaged by fire, explosion, natural catastrophe or Act of God to the extent that the reconstruction does not add to the floor area of the structure prior to its being damaged or destroyed;

B.

Parking structures, facilities and areas;

C.

ADUs 900 square feet or less; and

D.

Affordable Housing Incentives.

The traffic reduction and transportation improvement fee is waived for all for-sale or rental affordable housing units built on- site. Affordable housing units built off-site shall receive a 50 percent discount on the traffic reduction and transportation improvement fee.

For-sale or rental workforce housing units shall receive a 50 percent discount on the traffic reduction and transportation improvement fee when at least 15 percent of a development is within the price range of 121 to 150 percent of Average Median Income (AMI) for Los Angeles County.

For-sale or rental workforce housing units shall receive a 35 percent discount on the traffic reduction and transportation improvement fee when at least 15 percent of a development is within the price range of 151 to 180 percent of Average Median Income (AMI) for Los Angeles County.

The traffic reduction and transportation improvement fee is waived for all hotels or motels converted to residences which are rented or sold to persons and families of low or moderate income (as defined in Health and Safety Code Section 50093)

pursuant to a Hotel Conversion Permit.

The traffic reduction and transportation improvement fee is waived for all ADUs and Junior Accessory Dwelling Units (JADUs) that are entered into an affordability covenant or landlord agreement for ADUs in accordance with the city's Inclusionary Housing Regulations and in a form approved by the city attorney.

(Ord. No. 7458, § 4, 11-3-2025; Ord. No. 7403, § 1, 10-3-2022; Ord. No. 7333, § 6, 10-15-2018; Ord. No. 7309, § 2, 9-25- 2017; Ord. No. 7254, § 2, 1-12-2015; Ord. No. 7236, § 2, 12-16-2013; Ord. 7098, § 2, 2007; Ord. 7076, § 2, 2006; Ord. 5517, § 1, 1981)

The council shall disburse the funds collected under this chapter to implement or construct the transportation improvements listed Appendix A of The City of Pasadena Transportation Impact Fee Update - Nexus Study dated June 2025.

A copy of said Appendix A is on file with the City Clerk and is incorporated by this reference.

(Ord. No. 7458, § 5, 11-3-2025; Ord. No. 7309, § 4, 9-25-2017; Ord. 7076 § 2, 2006)

A.

Fees paid into the traffic reduction and transportation improvement fund which are not appropriated within 5 years of payment shall be returned to the payer, with all interest actually earned, if written request for return is filed with the director of finance during the fifth year after payment. The request for return shall be verified, and shall state the date of the payment, the amount paid, and that the party requesting return of the fee is the payer of the fee or the payor's assignee or successor.

B.

In the case of subdivisions, such fees shall be committed within 5 years after payment of such fees or the issuance of building permits on one-half of the lots created by the subdivision, whichever occurs later. If the fees are not committed, they shall be distributed and paid without any deductions to the then record owners of the subdivisions in the same proportion as the total number of lots in the subdivision.

C.

The right of a return of fees may be assigned in writing. No assignment shall be valid unless the assignment is acknowledged before a notary public in the same manner as is required for recording with the county recorder documents affecting title to land.

D.

If a request for return is not made within one year of the date of request for return may first be filed, then the right to have fees returned shall terminate, and the fees and all interest earned shall revert to the traffic reduction and transportation improvement fund.

(Ord. 7076 § 2 (part), 2006: Ord. 5517 § 1 (part), 1981)

All interest earned by the traffic reduction and transportation improvement fund shall be part of the fund. There shall be at all times reserved in the fund sufficient amounts of earned interest to enable the city to pay all potential obligations for the refund of interest earned on fees which may be eligible for refunds pursuant to Section 4.19.070 of this chapter. Any amounts of interest earned by the fund which exceed the necessary reserve amount may be appropriated and disbursed for any of the improvements identified in Section 4.19.060 of this chapter.

(Ord. 7076 § 2 (part), 2006: Ord. 6282 § 1, 1988: Ord. 5517 § 1 (part), 1981)

The director of finance shall maintain records specifically identifying the origin of the funds used for any project or improvement funded, in whole or in part, by the traffic reduction and transportation improvement fund. Such records shall enable the director to trace the fees from new development to specific projects funded by each development. Any interest accruing on account of time deposit of the fund, or otherwise, shall be deposited to the credit of the fund.

(Ord. 7076 § 2 (part), 2006: Ord. 5517 § 1 (part), 1981)