Commercial linkage fees are based on the link between new commercial development and the housing required to support new lower-income employees working in that new space. Revenue from linkage fees would then go to a fund to build affordable housing. These programs typically have different tiers based on the type of commercial development, each with a defined fee per square foot.
Where it Works
Commercial linkage fees best suited for areas with very strong development markets. Even where they are appropriate, calculating the fee requires careful market analysis.