New housing developers in San Rafael will start paying park impact fees in fall 2026 after the City Council gave final approval Monday, July 20, to a three-year phase-in schedule that balances park funding with the city's push to build more homes.

The council adopted Ordinance 2065 on its consent calendar at the regular meeting at City Hall, 1400 Fifth Ave. The fees take effect 60 days after adoption, which would place the start date around mid-September.

Under the phased plan, developers will pay 50% of the maximum fee beginning in 2026, 75% starting July 1, 2027, and the full amount starting July 1, 2028. At the top rate, a single-family home in a subdivision would carry a fee of $12,596, while each apartment or condo unit would cost $11,282.

The ordinance caps out at $9.98 per square foot for houses outside subdivisions and $18.50 per square foot for apartments and condos. Accessory dwelling units larger than 750 square feet face a maximum of $2.50 per square foot. Projects that are 100% affordable housing receive a 75% discount.

How it got here

The council voted unanimously on June 15 to adopt the phased approach over city staff's recommendation to impose the maximum fees immediately. City analyst Sullina Smith told the council at that June hearing that the update would "improve transparency by clearly identifying the cost associated with growth and establishing a fee structure that is supported by a legally defensible nexus study."

Jenny Silva, executive director of the nonprofit Call Marin Home, urged the council at the same June 15 hearing to choose the lower starting point.

"The decision tonight is not what the study justifies, but what fees best serve San Rafael's goals of both raising revenue and promoting the building of housing, especially affordable housing," Silva said.

Councilmember Maribeth Bushey framed the compromise as practical. She called the fees a "cost recovery mechanism" and said the phase-in would "give our developers a chance to adjust."

What it means for parks

The city's parks and recreation master plan identified more than $113 million in needed improvements, according to a staff-commissioned nexus study. That study attributed $69 million of the total to new housing development. At the maximum rate, staff estimated the fees would generate about $63.3 million over roughly 15 years.

Smith estimated that at the 50% rate, using a hypothetical scenario of a 45-townhome project and a 200-unit apartment complex, the city would forgo about $1.9 million compared to the full fee. At 75%, the gap narrows to just under $1 million.

San Rafael is required to facilitate 3,220 new residences under the state's eight-year housing cycle ending in 2031.

The council also gave final approval July 20 to Ordinance 2066, a new transportation mitigation fee expected to collect $54 million over 14 years.

Fees collected under the park ordinance will go into a dedicated Park and Recreation Facilities Fee Fund for park creation, acquisition, and improvement tied to new development.