Commercial Linkage Fee

The City Council adopted an Affordable Housing Commercial Linkage Fee on September 6, 2016, which went into effect November 5, 2016.

The Commercial Linkage Fee is a fee that is assessed to new non-residential construction such as office, hotel, medical, retail, and restaurants based on the principle that these new spaces will increase the number of workers, which creates a demand for housing. The fees collected are then to be used to support the creation or preservation of affordable housing to assist the workers who will make lower or moderate wages - those who cannot afford the current housing market prices.

Basic provisions include:
  • Fee is applied to all net new commercial square footage in excess of 5,000 square feet.
  • Public uses such as hospitals, nonprofit, and government facilities as well as churches, schools, and child care centers are exempt. Payment of fee is due at building permit issuance.
  • Developers who sign a Standard Wage Agreement are allowed a 25% reduction of the fee that is issued as a rebate upon the Certificate of Occupancy.
  • There is an option to provide construction of housing units in lieu of a fee payment.
Here are links to the implementing documents for this fee and the current fees are in the table below.

2017-18 Fees

Nonresidential Use Fee per Square Foot
Hotel $10
Retail, Restaurants, and Services $5
Office, Medical Offices, Research/Development Uses $25