On April 27, 2021, the City Council adopted the Childcare Impact Fee (CIF) as outlined in Santa Cruz Municipal Code (SCMC) Chapters 18.48. These fees became effective on June 26, 2021. A Childcare Impact Fee is assessed in connection with the issuance of certain development permits in the City designated by City Council Resolution NS-29,812. The City’s General Plan calls for accessible, high-quality childcare facilities and services and includes objectives and policies to encourage an adequate and diverse supply of childcare facilities and services citywide and includes a Childcare Impact fee on new residential and nonresidential development due to its impacts on childcare needs.

Current Fees 

• Residential Use - Single-Family: $0.613 per sq. ft., with a max of 614 sq. ft. at $376 per bedroom 
• Residential Use - Multi-Family: $0.460 per sq. ft. 
• Commercial Use - Retail: $1.674 per sq. ft. 
• Commercial Use - Office: $1.947 per sq. ft. 
• Commercial Use - Industrial: $0.777 per sq. ft. 
• Commercial Use - Hotel: $0.591 per sq. ft. 

Upcoming City Council Discussions

The City Council will consider updates to the Childcare Impact Fees at the February 25, 2025 meeting. The proposed development impact fee updates are related to charges on new residential and non-residential development to support the expanded needs of childcare and childcare facilities that new development creates.

The proposed updated resolution is included here: Draft Child Care Impact Fee Resolution for City Council 2-25-25 (Posted February 6, 2025). For more information, please visit the City Council meetings page for posted staff report and analysis. 

Annual Reporting Requirements

As mandated by California Government Code Section 66006, the City is required to submit annual reports on development impact fees within 180 days of the fiscal year's end. The City is making the report available to the public:

• Public Counters: The report is accessible at the public counters of the Departments of Planning and Community Development from November until January, annually.
• Notification: Individuals who have requested notification will receive a notice about the report and the upcoming City Council meeting at least 15 days prior to the meeting.

The Development Impact Fee Annual Reports for the CIF, as well as the Public Safety Impact Fees (PSIF) coordinated by the Police and Fire Departments, are available below: 

• FY 2024 CIF Annual Report | FY 2024 PSIF Annual Report
• FY 2023 CIF & PSIF Annual Report | Staff Report
• FY 2022 CIF & PSIF Annual Report | Staff Report

For more information on CIF, please contact the Viviane Pearson at vpearson@santacruzca.gov.