Los Angeles to Implement New Fee Maps for Developers

Los Angeles builders, take note: the city has tweaked its fees for apartments and commercial buildings by redrawing neighborhood maps into smaller zones.

The City of Los Angeles will implement the revised fee charged to developers, known as Affordable Housing Linkage Fee, on Friday, Realtor.com reported. Its new neighborhood maps approved last month replace the broader Community Plan Area boundaries used since the fee was launched in 2017.

The linkage fee charges developers of new residential and commercial projects and funnels the money into affordable housing construction citywide. The rate varies by project type and by which market area the property falls in, according to Realtor.com.

The updated maps “right-size” those requirements by aligning fees more closely with submarket conditions, rather than averaging costs across entire community plan areas.

The maps also put affordability set-aside percentages under the Mixed-Income Incentive Program. This lets developers build more density in exchange for affordable units. It also allows developers and property owners with projects in mind to determine whether a site is subject to minimum density rules under the city’s housing element ordinance, according to Realtor.com.

Density incentives, such as building near transit, have been successful in piqueing developer interest in the market, The Real Deal previously reported. Last month, the city Planning Commission approved a project from Anat Escher of Martin Dream to replace a small commercial building in Vermont Square with a 32-unit, six-story residential building – which will include affordable units under a density bonus program. In the fall, CIM Group proposed a mixed-use development in West Adams with 142 apartments and 8,000 square feet of retail, utilizing density incentives.

Potential builders can focus on where their property now lands by using the city’s updated market area maps or by searching their address in ZIMAS, the city’s zoning and planning portal, under the “Planning and Zoning” tab.

Updated memos on the new fees are still in the works. ZIMAS will reflect the new maps once those updates roll out, according to the city.

– Dana Bartholomew