Fee Deferral & Fee Waiver Policies

On March 10, 2026, the City Council of the City of Santa Cruz approved the following two policies related to fee waivers and deferrals to streamline the approval process for project development: 

• Development Review Fee Deferral Policy for 100% Affordable Housing Developments, NS-30,634:(PDF, 2MB) Under this policy, development review fees for 100 percent affordable housing planning applications may be deferred for a maximum of five years, unless a substantially complete building permit application is submitted, in which case fee deferrals may continue until a certificate of occupancy is issued or for a typical duration of up to five years following issuance of a certificate of occupancy, pursuant to an agreed upon payment plan, as approved by staff. The determination of eligibility for fee deferrals shall be made by the Director of Community Development or their designee, and any payment plan shall be approved by the Director of Finance or their designee. For fee deferrals extending beyond the certificate of occupancy, interest will accrue at a rate determined annually by the Finance Director.
• Development Review Fee Waiver Policy for Projects on City-owned Land, NS-30,635(PDF, 1MB): This fee waiver policy will establish a consistent process for determining and administering fee waivers for specified projects on City-owned land or buildings. Stemming from Council direction following the decision to waive land use application and building permit fees for the Museum of Natural History improvement project in 2025, this policy seeks to facilitate the development of public-serving development in Santa Cruz and enable investment in City-owned property and buildings. Projects will be reviewed on a discretionary basis by staff to determine eligibility for fee waivers or reductions, based on consistency with the policy.