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San Jose's secondary unit program may have gotten off to a slow start, but it could come to a grinding halt once applicants discover they will have to pay an additional fee of $5,000 to $15,000 as part of the Parkland Dedication and Park Impact ordinances.
The ordinances require residential developers to pay a fee or dedicate a certain amount of land for park use to help offset the effect of increased development on parks. The fee is based on property values and the number of residential units being built. To the city staff's surprise, the fee is applicable to residents who want to erect a second unit, or granny quarters, on their property through the city's secondary unit program.
"At first our attorneys advised us that the fee didn't apply to secondary units, but now they're advising us that it does," senior planner John Davidson said.
The fee is retroactive, making it applicable to homeowners who have already gone through the application process, he added.
Davidson said the planning department is looking into the situation, so it might just be a matter of time before the fees no longer apply.
The program to issue 100 permits for secondary units started as a pilot program on Jan. 2 and will run through Dec. 31. Only one permit has been issued, for a unit in the Willow Glen neighborhood. Seven other formal applications have been filed from three residents in Willow Glen, one in West San Jose, one in Berryessa, one in Evergreen, and one in North San Jose.
The idea behind the program was that it would be an affordable way to house senior citizens or their caretakers.
To obtain an application for a secondary unit, call 408.535.3555.
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