Businesses Creating a Need for Affordable Housing, and How to Offset the Impact

28 Oct

Eric Garcetti, Herb Wesson, Curren Price

“Linkage fees — which already exist in San Francisco, San Diego, Chicago and Boston — are a relatively arcane but potentially lucrative source of affordable-housing funds. The fees usually are charged based on the size of a development, by unit or by square foot.”

Read more:

http://www.latimes.com/local/lanow/la-me-ln-garcetti-affordable-housing-development-fee-20151023-story.html

For example, a dress shop hires 5 low income workers. Where would these workers live? In order to help these workers obtain close-by housing that they can afford, the dress shop would pay a linkage fee. These fees have the potential to produce up to $100 million a year for affordable housing.

Considering that funding for affordable housing is drying up around the nation, I personally think linkage fees are a great idea. Do you have linkage fees in your jurisdictions, and if so, how are they working?

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