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Part IV — ADMINISTRATION

Chapter 13 — FEE ON COMMERCIAL DEVELOPMENT FOR AFFORDABLE HOUSING

Walnut Creek Zoning Code · 2026-06 edition · updated 2026-07-07 · Walnut Creek

10-13.101 Purpose.

The purpose of this chapter is to facilitate the development and availability of housing affordable to a broad range of households with varying income levels within the City. It is intended in part to implement state policy that declares that local governments have a responsibility to exercise their powers to facilitate the development of housing to adequately provide for the housing needs of all economic segments of the community. It is also intended to implement the program in the Housing Element of the General Plan that calls for continued use of commercial linkage fee revenues to pay for the City's affordable housing programs and requires the City to update the nexus study supporting the commercial development housing impact fee and consider updating the fee. The goal of this chapter is to impose a fee on new commercial development that partially funds the need for

affordable housing created by the workforce of this new development. (§3, Ord. 2040, eff. 4/1/05; §3, Ord. 2177, eff. 1/5/18)

10-13.102 Definitions.

A. Commercial Development Project. A project consisting of the construction of new floor area for any use classification defined under Section 10-2.1.403(B), Commercial Use Classifications, those uses defined as research development industry under Section 10-2.1.403(C), those uses defined as hospital and acute medical care, residential care facilities, and skilled nursing facilities under Section 10-2.1.403(E), and any use determined to be a commercial use by the Zoning Administrator pursuant to Section 10-2.1.401.

B. Gross Floor Area. "Floor Area, Gross" as defined in Section 10-2.1.303.

C. Commercial Gross Floor Area. Gross floor area devoted to the uses listed in subsection (A) of this section.

D. Residential Gross Floor Area. Gross floor area devoted to uses which are subject to the provisions of Title 10, Chapter 2, Part III, Article 9 (Inclusionary Housing). (§3, Ord. 2040, eff. 4/1/05; §3, Ord. 2177, eff. 1/5/18)

10-13.103 Commercial Development Project Housing Impact Fee.

A. Requirement. A housing impact fee is hereby imposed on all commercial development projects. No application for a building permit for a commercial development project shall be approved, nor shall any such commercial development project be constructed, without compliance with this chapter. The fee imposed by this chapter shall be collected at the time of the issuance of a building permit. The collection of fees may be delayed until the certificate of occupancy is issued, if approved by the Community and Economic Development Director. No certificate of occupancy shall be issued for a commercial development project that has not paid a fee required under this chapter.

B. Exemptions. Notwithstanding subsection (A) of this section, this chapter shall not apply to the following:

  1. Reconstruction of any commercial gross floor area that was destroyed by fire, flood, earthquake or other act of nature, so long as the floor area does not exceed the floor area before the loss.

  2. Any project for which an application for Design Review Commission approval was deemed complete prior to the date of adoption of Ordinance No. 2040.

  3. Replacement for commercial use gross floor area previously on the site but demolished within one year prior to the filing of a complete application for the new construction.

  4. Replacement of any commercial gross floor area demolished as part of the development project.

  5. Parking lots or parking structures.

  6. Fifty percent (50%) of the net new commercial gross floor area of not-for-profit hospitals.

C. Calculation of the fee. The housing impact fee shall be charged on a square foot basis for all new commercial gross floor area, except as provided in subsection (B) of this section. The amount of the fee shall be established by resolution of the City Council. (§3, Ord. 2040, eff. 4/1/05; §3, Ord. 2177, eff. 1/5/18)

10-13.104 Adjustments.

A. The requirements of this chapter may be adjusted or waived if the developer demonstrates that an insufficient nexus exists between the proposed use and the housing impact fee. The developer shall submit documentation demonstrating this with a request for an adjustment or waiver in writing to the Community and Economic Development Director no later than the date it files its initial development application with the City. The developer shall provide such additional information as may be required by the Community and Economic Development Director to make a determination on the request. The determination of the Community and Economic Development Director may be appealed to the City Council as provided in Section 1-4.01 et seq.

B. The requirements of this chapter may be adjusted or waived if the developer demonstrates that applying this chapter would take property in violation of the United States and/or California Constitutions. The developer shall submit a request for an adjustment or waiver in writing to the Community and Economic Development Director no later than the date it files its initial development application with the City. The developer shall provide such additional information as may be required by the Community and Economic Development Director to make a determination on the request. The determination of the Community and Economic Development Director may be appealed to the City Council as provided in Section 1-4.01 et seq. (§3, Ord. 2040, eff. 4/1/05; §3, Ord. 2177, eff. 1/5/18)

10-13.105 Mixed Use Projects.

A. If the commercial development project also includes housing, and more than sixty-five percent (65%) of the gross floor area is devoted to residential uses which are subject to the provisions of Title 10, Chapter 2, Part III, Article 9 (Inclusionary Housing), then the project shall be exempt from this chapter.

B. In any other mixed-use project, the calculation of commercial gross floor area shall be reduced by thirty percent (30%) of the residential gross floor area. (§3, Ord. 2040, eff. 4/1/05; §3, Ord. 2177, eff. 1/5/18)

10-13.106 Conversions.

If a development is exempt from the fee at initial construction, but later converts to a commercial development project, the converted gross floor area will be deemed new commercial gross floor area and the housing impact fee shall be paid be a condition of the building permit or certificate of occupancy. (§3, Ord. 2040, eff. 4/1/05; §3, Ord. 2177, eff. 1/5/18)

10-13.107 Use of Funds.

All funds derived from this chapter shall be placed in a separate fund earmarked for the City's affordable housing program. (§3, Ord. 2177, eff. 1/5/18)

10-13.108 Alternative to Payment of a Housing Impact Fee.

As an alternative to payment of the housing impact fee, a developer of a nonresidential development project may submit a request to mitigate the impacts of such development through the construction of residential units, the dedication of land for affordable housing, or provision of other resources. Such requests may be granted in the sole discretion of the City Council, if the City Council determines that such alternative will further affordable housing opportunities in the City to an equal or greater extent than payment of the housing impact fee. (§3, Ord. 2040, eff. 4/1/05; §3, Ord. 2177, eff. 1/5/18)

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The Walnut Creek Municipal Code is current through Ordinance 2251, passed August 16, 2025.

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Contents — Walnut Creek Zoning Code
Walnut Creek Zoning Code
  1. 10-1.101 Citation and Authority.
  2. 10-1.102 Purpose.
  3. 10-1.103 Conformity to General Plan, Specific Plans and Zoning…
  4. 10-1.104 Application.
  5. 10-1.105 Modification of Requirements.
  6. 10-1.201 Definitions.
  7. 10-1.202 Responsibilities.
  8. 10-1.301 General.
  9. 10-1.302 Division of Land—Five or More Parcels.
  10. 10-1.303 Division of Land—Four or Fewer Parcels. (Minor Subdiv…
  11. 10-1.304 Plat Maps.
  12. 10-1.305 Fees and Deposits.
  13. 10-1.402 Tentative Maps.
  14. 10-1.403 Final Maps.
  15. 10-1.501 Tentative Parcel Map.
  16. 10-1.502 Parcel Maps.
  17. 10-1.503 Waiver of Parcel Map Requirements.
  18. 10-1.601 Dedication of Streets, Alleys and Other Public Rights…
  19. 10-1.602 Park Land Dedication.
  20. 10-1.603 School Site Dedication.
  21. 10-1.604 Reservations.
  22. 10-1.605 Claims of Excessive Dedications.
  23. 10-1.701 Purpose.
  24. 10-1.702 Requirements and Procedures.
  25. 10-1.703 Physical Standards for Condominium Conversions.
  26. 10-1.704 Tenant Provisions.
  27. 10-1.705 Effect of Proposed Conversion on the City's Low- and …
  28. 10-1.706 Findings.
  29. 10-1.801 General.
  30. 10-1.802 Improvements Required.
  31. 10-1.803 Deferred Improvement Agreements.
  32. 10-1.804 Design.
  33. 10-1.805 Access.
  34. 10-1.806 Improvement Plans.
  35. 10-1.807 Improvement Agreement.
  36. 10-1.808 Improvement Security.
  37. 10-1.809 Construction.
  38. 10-1.810 Construction Inspection.
  39. 10-1.811 Completion of Improvements.
  40. 10-1.812 Acceptance of Improvements.
  41. 10-1.813 Supplemental Improvement Capacity.
  42. 10-1.901 General.
  43. 10-1.902 Initiation of Proceedings.
  44. 10-1.903 Contents of Petition.
  45. 10-1.904 Submittal of Petition to City Engineer.
  46. 10-1.905 City Council Approval.
  47. 10-1.906 Filing with County Recorder.
  48. 10-1.1001 Mergers not Required.
  49. 10-1.1002 Mergers Required.
  50. 10-1.1003 Notice of Intention to Determine Status.
  51. 10-1.1004 Hearing on Determination of Status.
  52. 10-1.1005 Determination of Merger.
  53. 10-1.1006 Determination When No Hearing is Requested.
  54. 10-1.1007 Request to Merge by Property Owner.
  55. 10-1.1008 Unmerged Parcels.
  56. 10-1.1009 Request for Determination by Owner.
  57. 10-1.1010 Fee for Mergers and Unmergers.
  58. 10-1.1101 Requirements.
  59. 10-1.1102 Form and Contents.
  60. 10-1.1103 Submittal and Approval by the City Engineer.
  61. 10-1.1104 Filing with the County Recorder.
  62. 10-1.1105 Fee.
  63. 10-1.1201 Citation and Authority.
  64. 10-1.1202 Purpose and Intent.
  65. 10-1.1203 Consistency.
  66. 10-1.1204 Definitions.
  67. 10-1.1205 Application.
  68. 10-1.1206 Filing and Processing.
  69. 10-1.1207 Expiration.
  70. 10-1.1208 Vesting on Approval of Vesting Tentative Map.
  71. 10-1.1209 Development Inconsistent with Zoning—Conditional App…
  72. 10-1.1210 Applications Inconsistent with Current Policies.
  73. 10-1.1211 Failure to Obtain Design Review Approval.
  74. 10-1.1301 Prohibition.
  75. 10-1.1302 Remedies.
  76. 10-1.1303 Certificate of Compliance.
  77. 10-1.1304 Notice of Violation.
  78. 10-1.1305 Penalties.
  79. 10-1.1306 Judicial Action.
  80. 10-1.1401 Purpose.
  81. 10-1.1402 Applicability—Ministerial Approval.
  82. 10-1.1403 Exceptions.
  83. 10-1.1404 Definitions.
  84. 10-1.1405 Urban Lot Split Requirements.
  85. Chapter 2
  86. Part I — GENERAL PROVISIONS
  87. Part II — BASE DISTRICT REGULATIONS
  88. Part III — REGULATIONS APPLYING IN ALL OR SEVERAL DISTRICTS Re…
  89. Part IV — ADMINISTRATION

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