What Is Temecula's New Kangaroo Rat Habitat Fee?

You may be looking at Temecula land, planning a custom home, or calculating the costs of a larger development. Temecula has adopted a revised Stephens’ Kangaroo Rat Habitat Conservation Plan mitigation fee, and the main rate for covered development will be $900 per gross acre once the ordinance takes effect 60 days after adoption.

A qualifying single-family home on one legally created lot remains subject to a $250 fee. Certain agricultural development is charged $500 per gross acre. The rules apply only within the plan area and only when the environmental review process determines that on-site mitigation cannot satisfy the mitigation requirements.

This is general information and not legal advice. Before relying on a rate or exemption, confirm the parcel and permit details with the City of Temecula Planning Division.

What did Temecula change?

Temecula changed the mitigation fee for most covered development from $500 to $900 per gross acre while leaving the qualifying single-home fee at $250.

The posted City Council agenda for October 27, 2026 identifies the measure as Ordinance No. 2026-08, which amends Chapter 8.24, Habitat Conservation, of the Temecula Municipal Code. The ordinance had been introduced at the October 13 meeting for its first reading. The posted ordinance is dated adopted October 27, 2026. Its vote lines are blank, so the documents do not establish a vote count.

Ordinance No. 2026-08 says it takes effect 60 days after adoption.

Beginning July 1, 2027, the fee will be adjusted annually using the Consumer Price Index for All Urban Consumers for the Los Angeles-Riverside-Orange County region, or a successor index.

Who has to pay the fee?

Applicants for development permits in the plan area must pay when they cannot meet mitigation requirements through on-site mitigation, as determined through environmental review.

This is not described as a charge on every Temecula buyer, existing homeowner, or resale. The trigger is a development permit under the ordinance. If you’re considering vacant land, start with the parcel work covered in the guide to buying land in Temecula.

The ordinance defines the plan area as property within the city and within boundaries described by Riverside County Ordinance No. 663, as amended. The posted documents do not identify which individual Temecula parcels fall inside those boundaries. Ask the City of Temecula Planning Division whether a parcel is in the plan area.

We were discussing a Temecula building project when the new kangaroo rat habitat fee appeared in the cost estimate. The owner thought it was a general annual tax on every home in the city. We reviewed what activity triggered the fee and when it was collected before adding it to the project budget.

How much could a project owe?

A covered project generally owes $900 per gross acre, while two narrower categories use different rates.

A single-family residence pays $250 when it is on one legally created lot, the building permit is issued to an individual property owner, and the project is not part of a subdivision, tract development, or coordinated multi-unit residential development. The nexus study’s table note says this category may include one accessory dwelling unit built with the primary residence. The ordinance itself does not mention accessory dwelling units, so compare the project with the current ADU rules and confirm the fee treatment with the city.

Agricultural development requiring a development permit pays $500 per gross acre, excluding construction of single-family residences connected with that agricultural development.

The Riverside County Habitat Conservation Agency’s worked examples show how gross acreage is used. Its 30-acre tract example produces a $27,000 fee. A five-acre apartment complex produces a $4,500 fee. A qualifying single-family house on a two-acre plot pays $250, while a three-acre winery out-building produces a $1,500 agricultural fee. The manual calls the use of net acreage instead of gross acreage a common error.

When is the fee paid?

The fee is paid when the first of three events occurs: issuance of a grading permit, issuance of a certificate of occupancy, or final inspection.

A grading-permit applicant may choose to defer payment until the first building permit is issued for the parcels proposed for development. If payment is deferred, an instrument must be recorded with the County Recorder. That instrument gives notice that the entire mitigation fee must be paid before the first building permit is issued.

The amount applicable to a development permit is the fee in effect at the time of payment. Annual Consumer Price Index adjustments begin July 1, 2027.

The City Council may also adjust the fee by resolution under the cited state fee provisions. A substantive increase beyond the annual inflation adjustment requires findings and a nexus study, and it cannot become effective earlier than 60 days after adoption.

Which projects are exempt?

The ordinance exempts several types of work unless the development voluntarily participates in the plan.

Listed exemptions include reconstruction of a structure damaged or destroyed by fire or other natural causes. Rehabilitation or remodeling of an existing structure is exempt, as are additions to an existing structure. Governmental uses by local, state, or federal entities, including public works and schools, are also listed.

A parcel for which the mitigation fee has already been paid is generally exempt, but that exemption has a recalculation rule. If the earlier single-family fee covered a development where every lot exceeded one half gross acre, a later request for greater residential density or a change to non-residential use can trigger recalculation. A change from a use that paid the agricultural fee to residential, commercial, or industrial use can do the same. The applicant pays the difference for the new density or use.

These provisions do not say existing homeowners owe a new fee merely because the ordinance was adopted. They also do not assign the fee to resale buyers.

What should land buyers and developers verify?

Land buyers and developers should verify the plan-area boundary, project classification, gross acreage, payment date, prior fee history, and any habitat reserve issue with the city.

The ordinance says that approval of projects in areas identified as potential habitat reserve sites could jeopardize the species’ survival and therefore be inconsistent with a Habitat Conservation Plan even if the fee is paid. Paying the fee does not establish that a project can be approved.

If a lot might later get more units or density, ask what fee category and recalculation rule would apply. The ordinance has a recalculation rule when density rises after the single-family fee was paid. For further reading on what two-unit rules allow, see Temecula’s SB 9 two-unit rules. Larger residential projects also need project-specific cost review. The source documents do not say builders pass this fee to buyers, and they do not provide a per-home tract cost.

As of November 6, 2026, the ordinance is adopted and takes effect 60 days after October 27, 2026; the posted copy does not show a vote count. Check the city’s news page, council materials, and Planning Division guidance for implementation updates and the fee in effect when payment will occur.

What supports the new rate?

The $900 rate comes from the annual funding need and forecast development described in the 2026 nexus study.

The study identifies an annual need of approximately $1.9 million in 2025 dollars, with about $1.6 million to come from the mitigation fee.

Forecast average development across the plan area is about 1,770 acres per year. Spreading the stated net annual need across that acreage produces the $900 per-acre rate. The Riverside County Habitat Conservation Agency board adopted the 2026 nexus study on July 9, 2026.

Collected money goes into a special account established by Temecula’s Director of Finance. It may be spent solely on developing, preparing, and implementing a Stephens’ Kangaroo Rat Habitat Conservation Plan, including acquiring habitat reserve sites.

The short version

Temecula adopted a $900-per-gross-acre fee for most covered development in the plan area, effective 60 days after its October 27, 2026 adoption. A qualifying single-family home remains at $250, while qualifying agricultural development is $500 per gross acre.

Listed exemptions and recalculation rules may affect the amount due. Paying the fee does not guarantee approval on a potential habitat reserve site, so confirm the parcel, project classification, gross acreage, and payment timing with the Planning Division.

For a separate estimate of an existing property’s market position, use the home value tool.