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Hotel developers in unincorporated Napa County could soon face fees more than 10 times higher than what they pay now — part of the first major overhaul of the county’s affordable housing impact fees in over a decade.

For residents, the stakes go beyond what developers pay. The higher fees are designed to help fund affordable housing for local workers, discourage sprawl onto farmland, and curb the spread of luxury homes and resort-style projects that reshape the valley. County officials say the changes will help determine who can afford to live in Napa and what the region looks like in the years ahead.

The Napa County Board of Supervisors this week reviewed a proposal that would more than double most existing fees, with the steepest increases aimed at hotels and large homes.

The fees — paid by developers of commercial and residential projects — are meant to help fund affordable housing construction while discouraging growth that threatens farmland. A staff report says the updated schedule would incentivize smaller homes and agriculture, while charging more for large residences, hotels, restaurants, retail projects and other businesses that drive housing demand.

“This is not a tax,” said Jennifer Palmer, the county’s housing and homeless services director. “It is a way that we recover the cost of something that we are obligated to build.”

The proposed fees

Commercial fees, last updated in 2014, would rise sharply:

• Hotels: $101.25 per square foot, up from $9. (Supervisors signaled support for raising this closer to $150.)
• Retail and restaurants: $58.40 per square foot, up from $7.50.
• Offices: $14.68 per square foot, up from $5.25.
• Warehouses/storage: $7.50 per square foot, up from $3.60.
• Industrial space: $7.70 per square foot, up from $4.50.

Residential fees, last updated in 2010, would also jump:

• Homes 1,200-2,000 square feet: $21.50 per square foot, up from $9.
• Homes 2,001-3,000 square feet: $43, up from $10.75.
• Homes larger than 3,000 square feet: $86, up from $12.25.
• Accessory dwelling units under 751 square feet would be exempt.
• Larger ADUs would be charged on the same scale as houses.
• No fees would apply to homes smaller than 1,200 square feet or multifamily rental units.

County staff also recommend indexing the fees to annual construction costs, keeping them closer to market values.

Housing requirements

Napa County must plan for 106 new affordable homes through 2031 as part of its state housing mandate — a fraction of the 3,844 units required countywide, most of which fall to cities. Of those 106, 45 must serve “very low” income residents, defined as households making 50% or less of the county’s median income. For a single person, that’s $102,700.

Howard Siegel, a member of the Napa Housing Coalition and former county housing director, said the county’s current fees are “woefully inadequate to address the housing need.”

Chuck Shinnamon, also of the coalition, noted that commercial projects, especially hotels, often create demand for affordable housing by adding low-wage jobs.

“The fees that have been getting charged are, for all intents and purposes, almost a rounding error in the cost of building a new hotel,” he said.

Most supervisors expressed support for raising the fees, saying the changes would both fund housing and help preserve agriculture.

Board chair Anne Cottrell pointed to the creation of the county’s Agricultural Preserve in 1968, when leaders decided most housing should be directed into cities and towns. The suggested fees support that idea, she said.

Supervisor Amber Manfree said she’s seen a shift in rural areas toward multi-million-dollar vacation homes that sit empty much of the year.

“We’re paving our best ag land, and I just don’t want that point to get lost,” Manfree said. High fees on large homes, she added, help curb that trend.

Supervisor Joelle Gallagher urged the county to push hotel fees even higher.

“We don’t want hotels in the unincorporated area,” she said.

Manfree agreed.

But Supervisor Liz Alessio dissented, arguing that hotels near cities can generate significant tax revenue. Supervisor Belia Ramos floated creating a separate, reduced fee structure for hotel expansions, which Palmer suggested could be set at half the new-hotel rate.

The new fees would reshape where and how development happens in Napa County, raising costs for large-scale projects while steering growth into smaller homes and multifamily housing. They also represent the county’s latest effort to balance agricultural preservation with the state’s housing mandates.

Supervisors will take a final vote Oct. 21. If adopted, the new fees take effect Jan. 2.

Who pays what under Napa’s new housing fees

Who pays more

Hotels: $9 → $101.25 per square foot (may rise closer to $150)
Retail & restaurants: $7.50 → $58.40 per square foot
Offices: $5.25 → $14.68 per square foot
Large homes (over 3,000 square feet): $12.25 → $86 per square foot

Who pays less / nothing

Accessory dwelling units under 751 square feet: fee eliminated
Small homes (under 1,200 square feet): no fee
Multifamily rental units: no fee

Why it matters

Raises money for affordable housing
Pushes growth into smaller homes and cities
Aims to protect Napa’s farmland from being paved over

Next steps

Supervisors vote Oct. 21. If approved, new fees take effect Jan. 2.

Originally Published: September 25, 2025 at 4:12 PM PDT