Housing Impact Fee
A housing impact fee, also known as a linkage fee, is a city fee assessed on commercial or industrial development.
Commercial and industrial development usually results in new jobs – and additional jobs often create the need for additional housing, including housing affordable to non-professionals. The fee is used to help produce that affordable housing.
The housing impact fee is designed to help address the need for workforce housing. As housing impact fees are collected by the jurisdiction, they are disbursed into a housing fund and used to either build or preserve affordable housing, leveraging trust fund dollars against private investment dollars.
As an example, the current impact fee schedule for the City of San Diego is:
- $1.06 per square foot for office and comparable uses
- 80 cents per square foot for research and development space
- 64 cents per square foot for hotels, retail and manufacturing
- 27 cents per square foot for warehouses
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