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Park and impact fees for new homes in Palo Alto

Palo Alto's own rules on park and impact fees for new homes, with the code text for every value.

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Each rule below links to the section of the Palo Alto Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Palo Alto's code says

Palo Alto code What Palo Alto's code adds
Exemptions
  • Accessory dwelling units under 750 square feet are exempt.
    Applies: ADUs of 750 square feet or more pay fees in proportion to the main home's size.
    § 16.58.030 · code text
    (g) Accessory dwelling units (ADU) less than 750 square feet in size.
  • Junior accessory dwelling units are exempt.
    § 16.58.030 · code text
    (h) Junior accessory dwelling units (JADU);
  • Residential subdivisions that dedicate land or pay in-lieu fees are exempt.
    Applies: Only from the park development fee.
    § 16.58.030 · code text
    Any residential subdivision for which land dedication or fees in lieu thereof are required pursuant to Chapter 21.50 of the Palo Alto Municipal Code.
How the park fee is set
  • The fee is park acres per new home, times the number of new homes, times the land value per acre.
    Applies: Residential subdivisions paying a fee instead of dedicating land.
    § 21.50.080 · code text
    A x B x C = F
  • Land value for the fee is $5.7 million per acre, adjusted each year for inflation.
    § 21.50.070 · code text
    The fair market value per acre of land for the purposes of the calculation in § 21.50.080 is $5.7 million per acre.
  • Each new single-family home needs .0122 acre of park land (2.44 people per home).
    Applies: Residential subdivisions; used for both land dedication and the in-lieu fee.
    § 21.50.050 · code text
    | Single Family | 2.44 | .0122 |
  • Each new multi-family home needs .0084 acre of park land (1.68 people per home).
    Applies: Residential subdivisions; used for both land dedication and the in-lieu fee.
    § 21.50.050 · code text
    | Multi Family | 1.68 | .0084 |

Who this affects

HomeownersContractorsDesigners

Frequently asked questions

What park or impact fees apply to a new home in Palo Alto?

Palo Alto's code: The fee is park acres per new home, times the number of new homes, times the land value per acre. (Residential subdivisions paying a fee instead of dedicating land.) (§ 21.50.080); Land value for the fee is $5.7 million per acre, adjusted each year for inflation. (§ 21.50.070).

General information, not legal advice.

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