Los Angeles' Affordable Housing Linkage Fee: Overview

Summary

This practice note discusses the adoption and application of the City of Los Angeles' (City) Affordable Housing Linkage Fee (AHLF) and the Housing Impact Trust Fund (Fund). The AHLF applies to new construction of residential and non-residential projects within the City with some exemptions and is due prior to issuance of a building permit. As of July 1, 2022, the AHLF ranges from $1.16 to $20.89 per square foot depending on the type, size, and location of the development project; and the Linkage Fees are adjusted annually for inflation. The intent of the AHLF is to create a permanent source of local funding for the development of affordable housing based on an annual expenditure plan prepared for the Fund. This practice note addresses: (1) adoption of the AHLF, (2) application of the AHLF to a specific development project, and (3) implementation of the Housing Impact Trust Fund.