David Babakaiff
Written by David Babakaiff · Co-Founder, VanPlex | 25+ Years BC Construction Last reviewed: October 2026

Merced | Permits and Fees

Merced, California Permits and Fees: Who Decides, Application Review, Hearings, Appeals, Time Limits, Map Procedures and the Public Facilities Impact Fee

This page covers how a Merced housing project moves from application to approval and what the City charges along the way. A discretionary permit is one where a decision-maker weighs the project and may say no or add conditions; a ministerial permit is checked against written rules only. Merced sets its permit steps in Part 4 of the Zoning Ordinance (Chapters 20.64 to 20.74), its map steps in Title 18, and its impact fee in Chapter 17.62. The department in charge is Development Services, whose planning division handles zoning permits. The City's Planning and Development Application Fee Schedule sits on the City website, which refused this guide's request, so no application fee amount appears here. The Merced overview has the summary.

Merced permits and fees in six facts

Who Decides What

Action Director Site plan review committee Planning Commission City Council
Minor use permit Decision - Appeal Appeal
Site plan review permit Recommend Decision Appeal Appeal
Conditional use permit Recommend - Decision Appeal
Design review permit Recommend - Decision Appeal
Variance Recommend - Decision -
Minor modification Decision - Appeal Appeal
Density bonus Recommend - Recommend Decision
Tentative subdivision map Recommend - Decision Appeal
Final subdivision map Recommend - - Decision
Zoning or General Plan amendment Recommend - Recommend Decision

Source: Merced Municipal Code 20.64.030, Table 20.64-1.

The Director of Development Services may refer any matter to the Planning Commission instead of deciding it. The site plan review committee has three members: "the chief building official, director of development services, and the city engineer or their respective designees." Section 20.64.040(E) says every Planning Commission decision or recommendation "shall require at least four (4) members of the planning commission to vote to approve such an action; otherwise, the action is deemed denied." ADU permits are ministerial building permits under Section 20.42.020, with no Planning Commission role.

Applying and the Completeness Check

  • Pre-application meeting. Section 20.66.020(A) "encourages prospective applicants to request a pre-application conference" with the planning division. What staff says there is not a recommendation for approval or denial.
  • Who may apply. Only the owner or the owner's agent with written authorization.
  • Fees first. "Permit applications shall not be deemed complete until all required application fees have been paid" (Section 20.66.030(B)). Fees follow "the most current City of Merced Planning and Development Application Fee Schedule."
  • Completeness. "Within thirty (30) calendar days of application acceptance," the department must say in writing if the application is incomplete; "If no such written notice is issued, then the application is deemed to be complete."
  • Fee changes. The Director may raise or lower a fee, up to the actual cost of staff time. A higher fee must be noticed within five business days of submittal, and the applicant has 10 business days to pay or withdraw.
  • No response. If an applicant gives no information within six months of a request, "the application shall expire and be deemed withdrawn." Remaining fees are refunded only within one year of submittal.
  • Refunds. "No refund due to denial shall be provided"; a withdrawn application may get a partial refund.

State law sets its own clock. Government Code 65943 says an agency must decide whether an application is complete "Not later than 30 calendar days after any public agency has received an application for a development project." The City counts its 30 days from "application acceptance", and Section 20.66.020(D) lets staff refuse to accept a "substantially incomplete" application. The statute counts from receipt, and it controls. For ADUs, Government Code 66317 shortens the completeness check to 15 business days.

Use Permits, Site Plan Review and Design Review

Conditional use permit. Decided by the Planning Commission after a noticed hearing. Section 20.68.020 lists four findings, including that the use "will be compatible with the existing and future land uses in the vicinity" and is "adequately served by existing or planned services and infrastructure." A conditional use permit "shall expire" if not exercised within five years, and the Director may grant extensions of up to two years.

Minor use permit. Decided by the Director. "No public notice or hearing is required for a minor use permit." The same four findings apply. In housing, Merced uses it for /UR overlay building types such as fourplexes, for front yard changes, for interface sites next to R-1 homes, and for creek buffer areas.

Site plan review permit. Decided by the site plan review committee, with six findings, including that the project "complies with all applicable provisions of the zoning ordinance" and that its design will not interfere with neighbors. No public hearing is held, but when the property is directly next to residential land, "public notice shall be given to those directly adjacent properties at least ten (10) days prior to the site plan review meeting."

Design review permit. Required for most new buildings in parts of downtown Merced and the area directly west of it, shown in Figure 20.68-1, but not for "Single-family detached dwellings" or their accessory structures. Staff may decide new structures under 10,000 square feet "deemed by the director of development services to be minor in nature"; the Planning Commission decides the rest.

For housing that meets objective standards, Government Code 65905.5 says a city "shall not conduct more than five hearings" after the application is deemed complete, and a continued hearing counts as one of the five.

Hearings, Decisions and Appeals

  • Notice. Mailed at least 10 days before the hearing to the owner, the applicant, service agencies and "All owners of real property within three hundred (300) feet of the exterior boundaries of the subject property", published in a local newspaper and posted on the City website. Where more than 1,000 owners would get mail, a display advertisement of at least one-eighth page may replace it.
  • Effective date. A Director or Planning Commission decision is final "after 5:00 p.m. on the fifth (5th) business day following the date the decision is rendered" if no appeal is filed. A City Council decision takes effect the day it is made.
  • Appeal deadline. Five business days, excluding City holidays, after a decision by the Director, the site plan review committee or the Planning Commission. "Any person or persons may submit an appeal." Filing an appeal suspends all action on the project.
  • Appeal hearing. "Should be heard within ninety (90) calendar days of receiving the appeal." The body hearing the appeal may look at the whole project again, "de novo", and may affirm, reverse, add conditions or send it back. If it cannot reach a decision, the earlier decision stands.
  • Time limits. A permit not exercised within two years "shall be eligible for revocation." It is exercised when a building permit is issued and construction has started, an occupancy certificate is issued, a business license is issued or the use begins. The Director may add one year if asked at least 10 days before expiry.

Map Procedures and Fees

Parcel maps go to the minor subdivision committee, filed at least 25 days before its meeting, and must be recorded within twelve months, with extensions of up to two years. Tentative maps go to the Planning Commission, filed in 30 copies at least 21 days before the meeting, and final maps to the City Council within twenty-four months, extendable to three years. Section 18.04.070 says "The city council shall establish the filing fees by ordinance or resolution adopted from time to time." The map steps are on the lot size and subdivisions page.

The Public Facilities Impact Fee

An impact fee is a one-time charge on new development to pay for the public facilities it will use. Merced's is in Chapter 17.62. Section 17.62.040 establishes it "on issuance of building permits for development in the City of Merced to pay for municipally owned public facilities, including, but not limited to, fire stations, police stations, community park and recreation facilities, traffic related improvements, bikeways facilities, public works facilities, and information technology infrastructure." Table I sets the amounts:

Use Charged Amount in Table I
Single-family home Per dwelling $11,671
Multifamily home Per dwelling $8,520
Lodging Per room $3,293
Retail Per 1,000 sq ft $13,940
Office Per 1,000 sq ft $12,420
Industrial Per 1,000 sq ft $5,400

Source: Merced Municipal Code 17.62.040, Table I, effective March 2022.

Section 17.62.040(4) says the fee "shall thereafter be adjusted annually beginning January 1,2023, in accordance with the Engineering Construction Cost Index as published by the Engineering News Record," so Table I gives the 2022 starting amounts. The City's current figures would be in a fee schedule on its website, which this guide could not open. Ask the City for the amount in force on the day the building permit is issued. On the 2022 figures, a fourplex of four apartments would pay $34,080 and a duplex of two single-family homes $23,342 (VanPlex arithmetic, before the yearly adjustment); ask how the City classes a duplex.

Section 17.62.030 says the fee rests on a public facilities financing plan "adopted in May 1998, revised in July 2003, and further revised in January 2006, October 2012, and December 2021." The fee goes into separate accounts and must be "expended, encumbered or committed" within five years, or refunded with interest on request within one year. A developer may ask the City Council in writing to reduce, adjust or waive the fee for lack of a reasonable relationship to the project, at least 10 days before the Council's first approval of the project, or with the building permit request where no Council approval is needed. The Council decides "at the same time as the development approval or at a separate hearing held within sixty (60) days."

The City Council accepts a yearly impact fee report. Its item 25-857, recorded as passed on December 15, 2025, accepted the "Annual Report on Development Impact Fees for Fiscal Year 2024/2025 as Required by Government Code Section 66006(b)" with Resolution 2025-76. ADUs have their own rule: under Section 20.42.040(D), no impact fee applies to an ADU of less than 750 square feet, and Government Code 66311.5 extends that to 750 square feet or less. School district fees, water and sewer connection charges and building permit fees are separate and were not read for this guide.

Recent Code Changes That Touch Permits

  • Fire hazard map. Section 17.32.105, added by Ordinance 2578 on July 7, 2025 and amended by Ordinance 2583 on December 15, 2025, says "The city hereby designates the fire hazard severity zones as recommended by the California Department of Forestry" under Government Code 51178. Check whether a lot lies in a mapped zone.
  • Building codes. The City Council agenda system lists the second reading of ordinances "Adopting Title 24, Parts 1-12 of the California Code of Regulations", the state building codes, in item 25-1057, recorded as passed on December 15, 2025.
  • Zoning text. The latest Title 20 history note is Ordinance 2571 of November 18, 2024, on cannabis. Supplement 85 includes ordinances through Ordinance 2589 of March 2, 2026.

Best For

  • ✓ Projects that fit the written standards, which go through a minor use permit or site plan review with no public hearing.
  • ✓ Applicants who ask for a pre-application conference to learn the studies the City will require.
  • ✓ Developers who can show a project uses fewer public facilities than the fee assumes, and ask the Council for a fee adjustment in time.

Usually Fails When

  • ✕ A budget uses the 2022 impact fee amounts without the yearly adjustment since January 1, 2023.
  • ✕ An applicant misses a staff request for information for six months, which withdraws the application.
  • ✕ A neighbor's appeal is filed within five business days, which suspends the project until the appeal is decided.

What To Verify Before Spending Money

  • → The current public facilities impact fee and application fees, from the City.
  • → Whether the project is inside the downtown design review area of Figure 20.68-1.
  • → School, water and sewer fees from the school districts and the City utility.

Where to Go Next

Related on VanPlex: the Merced overview, the California impact fees page and the California CEQA and permit streamlining page.

Frequently Asked Questions

How much is the impact fee for a new house in Merced? +
Merced Section 17.62.040 set the public facilities impact fee at $11,671 per single-family home and $8,520 per multifamily home effective March 2022, collected when the building permit is issued. The code adjusts the amount every year from January 1, 2023 by the Engineering News Record construction cost index, so ask the City for the current figure.
How long does Merced take to check if my application is complete? +
Merced Section 20.66.040 gives planning staff 30 calendar days after accepting an application to say in writing that it is incomplete, or the application is deemed complete. State law, Government Code 65943, counts the 30 days from the day the agency receives the application. For ADU applications, Government Code 66317 sets 15 business days.
Who decides a site plan review permit in Merced? +
Merced's site plan review committee decides site plan review permits under Section 20.68.050. Its three members are the chief building official, the Director of Development Services and the City Engineer, or their designees. No public hearing is held, but owners of directly adjacent residential property get notice at least 10 days before the meeting.
How do I appeal a planning decision in Merced? +
In Merced, any person may appeal a decision of the Director, the site plan review committee or the Planning Commission by filing in writing with the fee within five business days, excluding City holidays, under Section 20.74.030. The appeal suspends the project, and the hearing should be held within 90 calendar days of receiving it.
How long is a Merced planning permit valid? +
A Merced planning permit not exercised within two years may be revoked under Section 20.72.060, and the Director may extend it for one more year if asked at least 10 days before it expires. A conditional use permit expires after five years if not used, with extensions of up to two years under Section 20.68.020.
Who gets notice of a Merced public hearing? +
Merced Section 20.70.020 requires notice mailed at least 10 days before a hearing to the owners and applicant, affected public agencies, anyone who asked in writing, and all owners of property within 300 feet of the site. The notice is also published in a local newspaper and posted on the City website.
Can I ask Merced to lower my impact fee? +
Yes. Merced Section 17.62.050 lets a developer apply in writing to the City Council to reduce, adjust or waive the public facilities impact fee where the project lacks a reasonable relationship to the fee. File it at least 10 days before the Council's first approval of the project, or with the building permit request; the Council decides within 60 days.
What is the Merced public facilities impact fee used for? +
Merced's public facilities impact fee pays for fire stations, police stations, community parks and recreation, traffic improvements, bikeways, public works facilities and information technology infrastructure, under Section 17.62.040. It rests on a financing plan first adopted in May 1998 and last revised in December 2021, and the money must be committed within five years.
Does Merced charge planning fees on a denied application? +
Merced keeps planning fees when an application is denied: Section 20.66.030 says no refund due to denial shall be provided. If an applicant withdraws, the department may give a partial refund based on costs to date. An application is not complete until all required fees are paid, under the City's current fee schedule.
How many Planning Commission votes does a Merced project need? +
A Merced project needs at least four Planning Commission votes in favor under Section 20.64.040(E); otherwise the action is deemed denied. The rule covers every Commission decision and recommendation in the Zoning Ordinance, including conditional use permits, design review permits and recommendations to the City Council on zoning changes and density bonuses.

Official sources (checked October 2026)

Merced Municipal Code, Title 20, Part 4 (Chapters 20.64 to 20.74), permits and administration (Municode, Supplement 85)
https://library.municode.com/ca/merced/codes/code_of_ordinances?nodeId=TIT20ZO_PT4PEAD_CH20.64ADRE_20.64.030CICO
Merced Municipal Code Chapter 20.66, permit application and review
https://library.municode.com/ca/merced/codes/code_of_ordinances?nodeId=TIT20ZO_PT4PEAD_CH20.66PEAPRE
Merced Municipal Code Chapter 20.68, permit requirements
https://library.municode.com/ca/merced/codes/code_of_ordinances?nodeId=TIT20ZO_PT4PEAD_CH20.68PERE
Merced Municipal Code Chapter 20.70, public notice and hearings
https://library.municode.com/ca/merced/codes/code_of_ordinances?nodeId=TIT20ZO_PT4PEAD_CH20.70PUNOHE
Merced Municipal Code 20.72.060, time limits and extensions
https://library.municode.com/ca/merced/codes/code_of_ordinances?nodeId=TIT20ZO_PT4PEAD_CH20.72POCIPR_20.72.060TILIEX
Merced Municipal Code 20.74.030, appeals
https://library.municode.com/ca/merced/codes/code_of_ordinances?nodeId=TIT20ZO_PT4PEAD_CH20.74AP_20.74.030FIPRAP
Merced Municipal Code Chapter 17.62, public facilities impact fees
https://library.municode.com/ca/merced/codes/code_of_ordinances?nodeId=TIT17BUCO_CH17.62PUFAIMFE
Merced Municipal Code 17.32.105, fire hazard severity zone map
https://library.municode.com/ca/merced/codes/code_of_ordinances?nodeId=TIT17BUCO_CH17.32FICO_17.32.105FIHASEZOMA
Merced Municipal Code Title 18, subdivisions
https://library.municode.com/ca/merced/codes/code_of_ordinances?nodeId=TIT18SU
City of Merced, City Council item 25-1057, adoption of the 2025 building codes
https://cityofmerced.legistar.com/LegislationDetail.aspx?ID=11540&GUID=9E7B72C9-FD06-4E0F-80F5-EB8B57F046C4
City of Merced, City Council item 25-857, 2024/2025 impact fee report
https://cityofmerced.legistar.com/LegislationDetail.aspx?ID=11340&GUID=1B149A30-B174-4D91-8FE5-2986B6034ACA
Government Code 65905.5 (five-hearing limit)
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV&sectionNum=65905.5
Government Code 65943 (completeness review)
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV&sectionNum=65943
Government Code 66311.5 (ADU impact fees)
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV&sectionNum=66311.5
Government Code 66317 (ADU review deadlines)
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV&sectionNum=66317
General information, not legal advice. California housing law changes every year, and each city adds its own rules on top of state law. Confirm current requirements with the city or county planning department, and with a California-licensed attorney or architect, before you buy land or file plans.

Planning a multiplex in Merced?

VanPlex builds multiplexes in British Columbia, Canada. For a lot in Merced, our team makes a custom proforma by hand and emails it to you in 24 to 48 hours.

Get a proforma for your address