SDCTA Opposes Increase to City of San Diego Linkage Fee
The Housing Impact Fee (linkage fee) is an unstable source of funding for construction of affordable housing because it is based on volatile conditions relating to development activities and economic climate. If affordable housing is truly a priority of the City Council, a stable source of revenue to support affordable housing projects should be identified. The City must implement the remaining audit recommendations that have been provided in an effort to produce efficiencies. Increasing the linkage fee between 500-900 percent, as is currently proposed, could drastically harm the region's economy. SDCTA believes the proposed fee is based on the false nexus that each job created within the city increases the need for affordable housing regardless of the type of job. Alternatively, market-based approaches offer opportunities to increase housing affordability by reducing the cost to develop and limiting time delays, additional fees, and costly regulatory requirements that drive up the cost of home construction.