Local code · Santa Monica

Santa Monica — Development Impact Fees

Q: What is the Area 3 overlay transportation-fee rule in Santa Monica?

A housing development in the Area 3 overlay may qualify for a $2,600 per multi-unit dwelling-unit transportation fee. It must be within one-half mile of a transit station by a direct barrier-free walking route, have qualifying convenience retail within one-half mile , and meet the listed parking condition. § 9.66.040(A)(6) The supplied materials do not identify the overlay boundary, so verify the parcel with the jurisdiction.

The Santa Monica Development Impact Fees, explained in plain English with the controlling citations.

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Quick answer

In Santa Monica, qualifying development may owe transportation, parks, and commercial linkage impact fees; transportation rates include $2,600–$3,300 per multi-unit dwelling unit and $21–$30.10 per sq. ft. for retail depending on area. § 9.66.040(A) Transportation and parks fees are generally due at the later of final inspection or certificate of occupancy. § 9.66.040(B)(2); § 9.67.040

Last reviewed: September 21, 2026 · AI-generated analysis · General information, not legal advice · details

Compiled from Santa Monica's adopted code with AI research tools and grounded in the sources cited below. Verify with Santa Monica planning staff before relying on it.

Overview

Santa Monica’s development impact fee framework in Chapters 9.66–9.68 addresses three separate impacts of new development: transportation, parks and recreation, and the affordable housing commercial linkage fee. The chapters apply to qualifying new projects and specified changes of use, while allowing the City Council to revise fee schedules by resolution.

The fee shown in the code is not necessarily the fee due at permit closeout: applicants generally pay under the fee schedule in effect when payment is made, unless vested rights set a different result. § 9.66.040(B)(1)

These fees are separate from project-specific conditions that may arise through Santa Monica Land Use, Santa Monica Subdivisions & Land Divisions, or other approvals. Transportation and parks fees are expressly supplemental to those potential conditions. § 9.66.010(C); § 9.67.010(C)

Fee Structure and Applicability

Transportation Impact Fee — Chapter 9.66

The Transportation Impact Fee implements Santa Monica’s objective of no net new automobile p.m. peak-hour trips from new development. It is intended to fund capital improvements to the City’s surface transportation system in proportion to development’s burden. § 9.66.010(A)–(B)

It applies to new projects whose development application was deemed complete, or whose application for a change in existing use was made, on or after the chapter’s effective date. § 9.66.020(A) A project subject to Chapter 9.66 is not also required to comply with Municipal Code Chapter 6.80. § 9.67.020(A)

Development category	Area 1 fee	Area 2 fee	Other rule	Code Reference
Single-unit residential adding a dwelling unit	$7,600 per unit	$7,800 per unit	The supplied text labels the fee “per multi-unit dwelling unit,” despite identifying this as single-unit residential; verify the City’s current fee schedule and application interpretation.	§ 9.66.040(A)(1)
Multi-unit residential adding a dwelling unit	$2,600 per unit	$3,300 per unit	Area 3 overlay qualifying housing: $2,600 per unit.	§ 9.66.040(A)(2), (A)(6)
Retail	$21/sq. ft.	$30.10/sq. ft.	Based on proposed project square footage.	§ 9.66.040(A)(3)(a)
Office	$9.70/sq. ft.	$10.80/sq. ft.	Includes creative, financial, and general office.	§ 9.66.040(A)(3)(b), (A)(4)(d)
Medical office	$28.10/sq. ft.	$29.80/sq. ft.	Includes medical clinics and medical-professional offices.	§ 9.66.040(A)(3)(c), (A)(4)(e)
Hospital	Not applicable	$14.70/sq. ft.	Full-service hospitals only.	§ 9.66.040(A)(3)(d), (A)(4)(f)
Lodging	$3.60/sq. ft.	$3.60/sq. ft.	Hotels, motels, and other overnight accommodations.	§ 9.66.040(A)(3)(e), (A)(4)(g)
Industrial / auto sales and display	$1.20/sq. ft.	$1.30/sq. ft.	Industrial includes warehouses, utilities, manufacturing, self-storage, and specified vehicle-storage uses.	§ 9.66.040(A)(3)(f)–(g), (A)(4)(h)

The stated rates are subject to automatic annual adjustment on July 1 of each fiscal year using the applicable Engineering News Record Construction Cost Index for the preceding 12 months. § 9.66.080 The City Council may also periodically review and revise both the fee amount and adjustment formula by resolution. § 9.66.100

Area 1

Area 1 is a transportation-fee geography used to calculate rates for residential and listed nonresidential development. It carries, for example, a $7,600 per-unit stated rate for qualifying single-unit residential additions and a $2,600 per-unit rate for qualifying multi-unit residential additions. § 9.66.040(A)(1)–(2)

The source materials do not identify Area 1’s boundaries, applicable zoning districts, permitted uses, dimensional standards, or location. Verify with the jurisdiction and consult Santa Monica zoning & planning overview for the separate zoning framework.

Area 2

Area 2 is the other standard transportation-fee geography listed in the chapter. It carries higher stated fees for several categories, including $7,800 per qualifying single-unit residential unit, $3,300 per multi-unit residential unit, and $30.10 per sq. ft. for retail. § 9.66.040(A)(1)–(3)

The source materials do not establish Area 2 boundaries, district purposes, typical permitted uses, or dimensional standards. Land-use entitlement, Santa Monica Development Standards, and related Santa Monica Parking requirements remain separate questions.

Area 3 Overlay

The Area 3 overlay is relevant only to a qualifying housing development’s transportation fee under the supplied provisions. A project may use the $2,600 per multi-unit dwelling-unit fee if it meets all three listed characteristics: location within one-half mile of a transit station by a direct, barrier-free walkable route no longer than one-half mile; convenience retail including food sales within one-half mile; and qualifying on-site parking. § 9.66.040(A)(6)

For the parking element, the project must provide either the municipal-code minimum or no more than one space for zero- to two-bedroom units and two spaces for units with three or more bedrooms, whichever is less. § 9.66.040(A)(6)(c) The source materials do not establish the overlay’s mapped boundary, underlying districts, general permitted uses, or dimensional standards; consult Santa Monica Overlay Districts and verify with the jurisdiction.

Parks and Recreation Development Impact Fee — Chapter 9.67

The Parks and Recreation Development Impact Fee is intended to address new development’s demand on Santa Monica parks and recreation facilities and to help fund related capital improvements. § 9.67.010(A)–(B)

It applies to qualifying new projects and changes in existing uses made on or after the chapter’s effective date. § 9.67.020(A) The amount and annual adjustment formula may be periodically revised by City Council resolution. § 9.67.100

No parks-fee rate, area map, district-specific standard, or formula is provided in the source materials. The fee must be paid in full at the later of certificate of occupancy or final inspection. § 9.67.040

Affordable Housing Commercial Linkage Fee — Chapter 9.68

The affordable housing commercial linkage fee applies to the commercial portion of a qualifying new project or change in existing use. § 9.68.020(A) It is a commercial-square-footage impact fee, not a stated residential fee under the supplied material.

If space initially exempt from this fee later converts to commercial development subject to the chapter, the converted space is treated as net new commercial square footage and the housing impact fee is due before final approval of a building permit. § 9.68.020(B) The City Council may periodically revise the fee amount and automatic annual-adjustment formula by resolution. § 9.68.100

No fee rate, land-use category schedule, payment timing for ordinary new commercial projects, or district mapping is found in source materials. Projects seeking housing incentives or Santa Monica Density Bonus treatment should confirm how separate approval pathways affect their fee analysis.

Exemptions, Credits, and Mixed-Use Projects

The following categories are exempt from the transportation fee and parks fee as described in their respective applicability sections:

Places of worship, City projects, day care centers, and private K–12 schools. § 9.66.020(B)(1)–(4); § 9.67.020(B)(1)–(4)
Certain publicly assisted nonprofit affordable multifamily rental projects, provided the project meets the applicable affordability requirements and is secured by a regulatory agreement, memorandum, or recorded covenant for at least 55 years. § 9.66.020(B)(5); § 9.67.020(B)(5)
Re-occupancy of existing square footage with no change of use. § 9.66.020(B)(6); § 9.67.020(B)(6)
Outdoor-dining square footage in the public right-of-way. § 9.66.020(B)(7); § 9.67.020(B)(7)
Deed-restricted affordable units specified in each chapter’s exemption provision. § 9.66.020(B)(8); § 9.67.020(B)(8)

For Chapter 9.68, the equivalent exemption list applies to the commercial portion of qualifying projects, except that the supplied section does not list an affordable-unit exemption because the fee is directed to commercial portions. § 9.68.020(B)

For transportation fees, legally permitted square footage demolished from an existing building or structure is credited against the fee calculation. The same credit concept covers removed outdoor sales, display, and inventory-storage area associated with a service station or auto dealer, subject to the stated limitations. § 9.66.040(A)(7)

A mixed residential/nonresidential project pays the sum of the applicable residential and nonresidential transportation-fee components. § 9.66.040(A)(5) Do not assume a zoning, Santa Monica Use Classifications, Santa Monica ADUs, or design-review determination answers the fee question; the fee chapters use their own applicability and land-use categories.

Payment and Administration

Transportation fees are due in full upon the later of a certificate of occupancy or final inspection. § 9.66.040(B)(2) Parks and recreation fees follow the same later-of-certificate-of-occupancy-or-final-inspection timing. § 9.67.040

A Chapter 9.67-exempt project that later converts to a use subject to that chapter must pay the parks and recreation fee before final building-permit approval, or—where state law requires—before final inspection or certificate of occupancy, whichever occurs first. § 9.67.020(B) A Chapter 9.68-exempt project later converted to covered commercial development must pay before final building-permit approval. § 9.68.020(B)

The Director of Planning and Community Development, or designee, may adopt written administrative regulations or guidelines consistent with Chapter 9.66. § 9.66.110 The provided materials do not establish comparable administrative-regulation authority for Chapters 9.67 or 9.68.

Information Gaps

The source materials do not establish:

The mapped boundaries of Area 1, Area 2, or the Area 3 overlay.
Any zoning-district-by-zoning-district fee schedule, purpose, permitted-use list, setbacks, height, FAR, lot coverage, or other dimensional standards.
Current City Council resolution rates after annual adjustments for transportation, parks, or commercial linkage fees.
Parks and recreation fee amounts or calculation methodology.
Affordable housing commercial linkage fee amounts, ordinary-project payment timing, or calculation methodology.
Whether a particular parcel, Santa Monica Design Review approval, or development type is subject to an exemption. Verify with the jurisdiction.

Checklist

Identify whether the proposal is a new project or a change in existing use under § 9.66.020(A), § 9.67.020(A), and § 9.68.020(A).
Separate residential, nonresidential, and commercial portions of a mixed-use proposal for the applicable fee analysis. § 9.66.040(A)(5); § 9.68.020(A)
Confirm whether the project falls in Area 1, Area 2, or the Area 3 overlay; the supplied materials do not map these areas.
Classify nonresidential square footage using the Chapter 9.66 land-use definitions. § 9.66.040(A)(4)
Test every claimed exemption, including the 55-year affordability-security requirement for qualifying nonprofit affordable rental housing. § 9.66.020(B)(5); § 9.67.020(B)(5); § 9.68.020(B)(5)
Document legally permitted demolition square footage for a possible transportation-fee credit. § 9.66.040(A)(7)
For an Area 3 overlay housing project, document transit access, nearby convenience retail, and qualifying parking. § 9.66.040(A)(6)
Obtain the current Council-adopted fee schedule because rates may be adjusted or revised after the code’s stated amounts. § 9.66.080; § 9.66.100; § 9.67.100; § 9.68.100
Plan to pay transportation and parks fees at the later of final inspection or certificate of occupancy. § 9.66.040(B)(2); § 9.67.040

Risks & Ambiguities

Issue	Why it matters	What to verify
Area designation	Transportation rates vary materially by Area 1, Area 2, and the qualifying Area 3 overlay rule.	Parcel mapping and whether an overlay applies. § 9.66.040(A)(1)–(3), (A)(6)
Current fee schedule	Transportation rates adjust annually, and all three fee programs may be revised by Council resolution.	The rate effective on the actual payment date and any vested-rights protection. § 9.66.040(B)(1); § 9.66.080; § 9.66.100; § 9.67.100; § 9.68.100
Use classification	Retail, office, medical office, lodging, industrial, and hospital uses carry different transportation rates.	The City’s classification of each tenant space and proposed use. § 9.66.040(A)(3)–(4)
Existing-space treatment	Re-occupancy without a use change is exempt, while certain conversions can create a new fee obligation.	Whether the proposal changes use and how converted square footage is measured. § 9.66.020(B)(6); § 9.67.020(B); § 9.68.020(B)
Demolition credit	Creditable legally permitted square footage may reduce the transportation fee.	Permitted existing area, demolition scope, and excluded gas-station outdoor areas. § 9.66.040(A)(7)
Affordable-project exemption	The exemption depends on nonprofit/public assistance, qualifying affordability, and at least 55 years of recorded or contractual security.	The project’s documents and the City’s determination. § 9.66.020(B)(5); § 9.67.020(B)(5); § 9.68.020(B)(5)

Plain-English Summary

In Santa Monica, a project can owe separate fees for traffic impacts, parks demand, and new commercial space’s affordable-housing impact. The biggest practical step is to confirm the project’s fee area, use category, exemption status, and current City fee schedule before budgeting—because the code’s stated transportation numbers can be adjusted and the supplied materials do not provide current parks or commercial-linkage rates.

Source References

§ 9.66.010 — Transportation impact fee findings, purpose, nexus, and supplemental nature.
§ 9.66.020 — Transportation fee applicability and exemptions.
§ 9.66.040 — Transportation fee rates, land-use definitions, Area 3 overlay standard, credits, and timing.
§ 9.66.080 — Annual transportation-fee adjustment.
§ 9.66.100 — Transportation fee revision by resolution.
§ 9.66.110 — Transportation-fee administrative regulations.
§ 9.67.010 — Parks and recreation fee findings and purpose.
§ 9.67.020 — Parks and recreation fee applicability, exemptions, and later conversion rule.
§ 9.67.040 — Parks and recreation fee payment timing.
§ 9.67.100 — Parks and recreation fee revision by resolution.
§ 9.68.020 — Commercial linkage fee applicability, exemptions, and conversion rule.
§ 9.68.100 — Commercial linkage fee revision by resolution.
§ 9.01.060 — Separate application fees for concurrently processed zoning applications.

Sources

Source passages

Santa Monica Zoning Code § 9.01.060 Medium relevance
Santa Monica Zoning Code § 9.67.020 Medium relevance
Santa Monica Zoning Code § 9.66.100 Medium relevance
Santa Monica Zoning Code § 9.66.110 Medium relevance
Santa Monica Zoning Code (§ 9.68.100) Medium relevance
Santa Monica Zoning Code § 9.66.040 Medium relevance
Santa Monica Zoning Code § 9.66.020 Medium relevance
Santa Monica Zoning Code § 9.66.010 Medium relevance
Santa Monica Zoning Code § 9.67.100 Medium relevance
Santa Monica Zoning Code § 9.66.080 Medium relevance
Santa Monica Zoning Code § 9.67.010 Medium relevance
Santa Monica Zoning Code § 9.68.020 Medium relevance
Santa Monica Zoning Code § 9.67.040 Medium relevance

Cited sections

Official Santa Monica code library

Frequently asked questions

What is the transportation impact fee for a new home in Santa Monica?

For a qualifying single-unit residential project that adds a dwelling unit, the stated transportation fee is $7,600 per unit in Area 1 and $7,800 per unit in Area 2. § 9.66.040(A)(1) The current amount can differ because Santa Monica adjusts transportation fees annually and may revise them by resolution; verify the current schedule with the jurisdiction. § 9.66.080; § 9.66.100

How much is Santa Monica’s transportation impact fee for an apartment project?

For qualifying multi-unit residential development adding dwelling units, the stated rate is $2,600 per unit in Area 1 and $3,300 per unit in Area 2. § 9.66.040(A)(2) A qualifying housing development in the Area 3 overlay pays $2,600 per unit if it satisfies the transit, nearby-retail, and parking conditions. § 9.66.040(A)(6)

What is the Area 3 overlay transportation-fee rule in Santa Monica?

A housing development in the Area 3 overlay may qualify for a $2,600 per multi-unit dwelling-unit transportation fee. It must be within one-half mile of a transit station by a direct barrier-free walking route, have qualifying convenience retail within one-half mile, and meet the listed parking condition. § 9.66.040(A)(6) The supplied materials do not identify the overlay boundary, so verify the parcel with the jurisdiction.

When are Santa Monica transportation and parks impact fees due?

The transportation impact fee and parks and recreation development impact fee are each due in full at the later of final inspection or issuance of a certificate of occupancy. § 9.66.040(B)(2); § 9.67.040 A fee schedule in effect when payment is made generally controls transportation fees, except where vested rights apply. § 9.66.040(B)(1)

Are nonprofit affordable housing projects exempt from Santa Monica impact fees?

Certain nonprofit multifamily rental housing projects can be exempt if the developer receives public-agency financial assistance, the project meets the applicable affordable-housing requirements, and the obligation is secured for at least 55 years by a regulatory agreement, memorandum, or recorded covenant. § 9.66.020(B)(5); § 9.67.020(B)(5) The commercial portion of a qualifying project has a similar Chapter 9.68 exemption. § 9.68.020(B)(5)

Does Santa Monica charge an impact fee when an existing building is reoccupied?

Re-occupancy of existing building square footage without a change of use is exempt from the transportation and parks and recreation fee requirements. § 9.66.020(B)(6); § 9.67.020(B)(6) Re-occupancy of commercial square footage without a change of use is also exempt from the commercial linkage fee. § 9.68.020(B)(6)

Can demolition reduce a Santa Monica transportation impact fee?

Yes. Legally permitted square footage demolished from an existing building or structure can be credited in calculating the transportation impact fee. § 9.66.040(A)(7) Special rules apply to service-station and auto-dealer outdoor areas, and gas-station setbacks, landscaping, parking, and circulation pavement are excluded from that outdoor-area credit. § 9.66.040(A)(7)

Does Santa Monica charge a commercial linkage fee for new commercial space?

Yes, Chapter 9.68 applies the affordable housing commercial linkage fee to the commercial portion of a qualifying new project or qualifying change in existing use. § 9.68.020(A) The source materials do not state the current rate or ordinary payment timing, so verify the current Council fee schedule with the jurisdiction. § 9.68.100

General information, not legal advice.

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