Developers of luxury homes and resort projects in unincorporated Napa County will soon pay dramatically more to build, after supervisors narrowly approved the county’s largest development fee overhaul in more than a decade.

The 3-2 vote Tuesday capped months of debate over how much new construction should contribute to the local housing crisis and revealed a divide over how quickly to act on sweeping fee increases that could reshape the economics of building in the county

The new rules, which take effect Jan. 16, 2026, will be phased in over three years and fully implemented by 2028. They will more than double most commercial fees and raise the cost of hotel projects more than tenfold — from $9 to $100 per square foot. Large single-family homes will also see sharp increases, while smaller houses, accessory dwelling units under 750 square feet and multifamily projects will remain exempt.

County officials haven’t finalized how the phase-in will work. A proposal from Jennifer Palmer, Napa County director of housing and community services, envisioned enacting 50% of the fee update in 2026, 75% in 2027 and 100% in 2028.

Supervisor Belia Ramos’ motion to approve the plan — backed by Supervisors Joelle Gallagher and Amber Manfree — calls for phasing in the hikes over three years and expanding exemptions to homes 2,500 square feet or smaller. It also directs the county to create a fee deferral program for property owners who agree to rent their units as affordable housing.

Supervisors Liz Alessio and Anne Cottrell opposed the motion, saying residents and builders needed more time to digest the changes.

Gallagher countered that postponing the decision wouldn’t bring the county any closer to a resolution. “I don’t want this to be a ‘kick the can down the road’ situation,” she said.

The fee update — the first since 2010 for housing and 2014 for commercial projects — is intended to generate new funding for affordable housing and discourage the spread of large luxury properties that drive up demand for low-wage workers’ homes.The decision signals a shift in how Napa County plans to balance its world-class tourism economy with the housing needs of the people who sustain it, a question that’s likely to surface again as the county faces its next wave of development proposals.

Proposed fee increases

The increases could be phased in at 50% in 2026, 75% in 2027 and reach their full rates in 2028. Commercial fees were last updated in 2014, while residential fees haven’t been updated since 2010.

Commercial

Hotels: $100 per square foot, up from $9

Retail and restaurants: $58.40 per square foot, up from $7.50

Offices: $14.68 per square foot, up from $5.25

Warehouses and storage: $7.50 per square foot, up from $3.60

Industrial space: $7.70 per square foot, up from $4.50

Residential

2,501-3,500 square feet: $43 per square foot, up from $10.75 for homes 2,000-3,000 square feet.

3,501 square feet or larger: $86 per square foot, up from $12.25 for homes 3,001 square feet or larger

Under 2,500 square feet: No fee