Developers Brace for New Construction Linkage Fee
A proposed construction linkage fee is nearing approval and, if approved, will increase commercial construction costs by $5 per square foot. The proposed new fee would be aimed at funding affordable housing projects, but the development community is opposed to the fee.
"The City of Los Angeles is considering imposing a significant new fee on most construction projects," said Partner Andrew Starrels. "These are called “linkage fees” because they attempt to connect new development to the severe need for affordable housing in the city by providing a sustainable funding source. The fees apply to virtually all new commercial and residential construction, and will be collected when a building permit is issued and deposited into the City’s Affordable Housing Trust Fund."
READ: Developers Brace for New Construction Linkage Fee (Subscription Required)