The city of South San Francisco recently approved a linkage fee for commercial developments, following the lead of a few other cities that have decided on linkage fees as a similar mechanism to fund affordable housing.
"Building in South San Francisco will come with a slightly higher price tag under a decision to combat the local affordability crisis with a new fee paid by those proposing commercial developments," reports Austin Walsh.
Developers of retail, commercial, and hotel uses will pay the new linkage fee. "Under the decision, builders will be required to pay $5 per square foot of new hotel space; $2.50 for restaurant or retail square footage and $15 for the same amount of office, medical or research and development space," adds Walsh.
"Officials expect the fees over the next couple years could generate between $5 million to $15 million, which will flow into a fund designed to facilitate construction of more affordable housing opportunities," according to Walsh.
The article includes more detail about the political debate that lead to the South San Francisco City Council's adoption of the new linkage fee.
A follow up article on the news by Rachel Dovey places South San Francisco's new linkage fee in context of the other cities adding linkage fees to generate funding for affordable housing projects.
Read the full story: South City adopts commercial linkage fees
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