Somehow Portland, OR was able to waive their fees for granny units to encourage them. Menlo Park chose to raise their fees which indicates they don't want these units. Even if the fee is "only" $7500 that is a huge sum on top of architect fees and construction costs. I doubt there will be many units built and even fewer illegal units will come forward.

I spoke to the County Tax Assessor's office yesterday. Adding a second unit would boost property taxes by more than 25%. Interestingly, some of that increase in property taxes goes back to the City of Menlo Park every year, year after year forever.