Division 15.4 — AFFORDABLE HOUSING PROGRAM FEES

The following fees shall be charged for costs associated with implementation of Sec. 9.2.1. (Density

Bonus) :

FEES FOR DENSITY BONUSES

Sec. 15.4.1. (Density Bonus Program Fees) Last amended by Ord. 188,478 (Resolution), Eff. 06/18/2025

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Fees | ARTICLE 15 Div. 15.4. (Affordable Housing Program Fees)

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Unless a fee exemption pursuant to Subsection A. (Fee Exemption) below applies, the following fees

shall be charged and collected by the Los Angeles Housing Department (LAHD) for the preparation, enforcement, monitoring, and associated work relating to the affordable housing covenants required by Sec. 9.2.1. (Density Bonus), Sec. 9.2.2. (Affordable Housing Incentive Program), Sec.

9.2.3. (Opportunity Corridors Housing Incentive Program), Sec. 9.2.4. (Corridor Transitions Incentive Program), Sec. 9.2.5. (Transit Oriented Incentive Program), and Sec. 9.3.2. (Local Affordable Housing Incentive Program), and Sec. 9.4.4.B.2. (Restricted Affordable Units) .

FEES FOR ENFORCEMENT OF HOUSING COVENANTS

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A. Fee Exemption

New projects subject to an affordable housing covenant wherein at least 50 percent of the units

are restricted for use as permanent supportive housing shall be exempt from the fees marked

above with an asterisk.

B. Fees In Existing Covenants

Any owner or landlord of a project subject to an existing affordable housing covenant in effect prior to the effective date of the fees set forth in Sec. 15.4.2.A. (Fee Exemption) and which contains a conflicting monitoring fee amount, shall be subject to the fee set forth in the existing covenant.

C. Fees Due & Payable

The fees shall be fully due and payable at the time of the request for service, except for the affordable housing monitoring fees, which may be paid pursuant to the options set forth in

Subsection D. (Covenant Monitoring Fees) below.

D. Covenant Monitoring Fees

The affordable housing covenant monitoring fees may be pre-paid in full at or before the time of the recording of an underlying affordable housing covenant, or billed annually to an owner or

landlord upon the issuance of the Certificate of Occupancy for the project that is subject to an underlying affordable housing covenant.

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Sec. 15.4.2. (Fees For Enforcement Of Housing Covenants) Last amended by Ord. 188,478 (Resolution), Eff. 06/18/2025

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Fees | ARTICLE 15 Div. 15.4. (Affordable Housing Program Fees)

E. Collection of Outstanding Fees

City of Los Angeles Zoning Code Chapter 1A

The LAHD shall have the right to bring legal action in any court to collect the amount of any

outstanding fees. The LAHD may make such rules and regulations as may be necessary to carry

out the provisions of this Section (Fees For Enforcement Of Housing Covenants) .

Sec. 15.4.2. (Fees For Enforcement Of Housing Covenants) Last amended by Ord. 188,478 (Resolution), Eff. 06/18/2025

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Fees | ARTICLE 15 Div. 15.4. (Affordable Housing Program Fees)

A. Definitions

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Terms shall have the meaning ascribed to them in Div. 14.3. (Glossary) . For the purposes of this Section (Affordable Housing Linkage Fee) only, certain terms and words are defined as follows:

Additional Housing Units. A net increase in the number of dwelling units or guest rooms to be added

on a parcel or parcels of land by issuance of a building permit, after subtracting the number of

dwelling units or guest rooms legally removed from the same parcel of real property during the

year preceding the issuance of the building permit.

Additional Non-Residential Floor Area. The net increase in the amount of non-residential foor areal,

as defined in Sec. 14.2.7. (Floor Area), to be added on a parcel or parcels of land by issuance of

a building permit, less the amount of non-residential foor areal legally removed from the same

parcel of real property during the year preceding the issuance of the building permit.

Applicant. Any individual, person, firm, partnership, association, joint venture, corporation, limited

liability company, entity, combination of entities or authorized representative thereof, who

undertakes, proposes or applies to the City for a planning or zoning entitlement approval or

building permit related to a development project.

Building Permit Application. Plans submitted to the Department of Building and Safety pursuant to

Sec. 13B.10.1.B.2. (Vesting of Development Plan) .

Development Project. Any activity involving or requiring the issuance of a building permit that results

in additional housing units, additional non-residential foor areal, additional single-family residential

foor areal, or a change of use from non-residential to residential.

Grocery Store. A project that is for a retail use of which greater than one half of the foor areal is

devoted to the sale of food items intended for consumption or use off the premises, excluding

alcoholic beverages.

Linkage Fee. The fee assessed, pursuant to this Section (Affordable Housing Linkage Fee), on certain

development projects in order to mitigate the impact of the additional demand for affordable

housing caused by such activity.

B. Applicability

The regulations, requirements, and provisions of this Section (Affordable Housing Linkage Fee)

shall apply to any development project. Unless a development project is exempt from this Section (Affordable Housing Linkage Fee), an applicant must pay to the City the required linkage fee as

a condition of the building permit for which a building permit application has been submitted in order to mitigate the need for affordable housing that is generated by or attributable to such projects. The provisions of this Section (Affordable Housing Linkage Fee) are subject to the

requirements set forth in California Government Code Sec. 66000, et seq .

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Sec. 15.4.3. (Affordable Housing Linkage Fee) Last amended by Ord. 188,482 (Resolution), Eff. 06/18/2025

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Fees | ARTICLE 15 Div. 15.4. (Affordable Housing Program Fees)

1. Exemptions

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The Department of Building and Safety shall determine whether any of the following

exemptions apply to a development project based on documentation submitted by the

applicant prior to the issuance of the building permit. The fee imposed by this Section (Affordable Housing Linkage Fee) shall not apply to construction that includes any the

following:

a. Less than 15,000 square feet of additional non-residential foor areal in any non

residential building, other than parking garages and parking facilities, as determined by the

Department of Building and Safety.

b. Any for-sale or rental housing development project containing restricted afordable unitf s

where the following requirements are met:

i. At least 40 percent of the total dwelling units are dedicated for moderate income

households, or at least 20 percent of the total dwelling units are dedicated for low

income households, or at least 11 percent of the total dwelling units are dedicated

for very low income households, or at least eight percent of the total dwelling units

are dedicated for extremely low income households; or the project is approved

pursuant to Sec. 9.2.3. (Opportunity Corridors Housing Incentive Program), or Sec.

9.2.4. (Corridor Transitions Incentive Program), or Sec. 9.2.5. (Transit Oriented Incentive

Program) .

ii. The housing development project’s restricted afordable unitf s are subject to a

recorded affordability restriction of at least 55 to 99 years pursuant to Sec. 4C.15.3. (Restricted Affordable Units) from the issuance of the Certificate of Occupancy,

recorded in a covenant acceptable to LAHD, and subject to fees as set forth in Sec.

15.4.2. (Fees for Enforcement of Housing Covenants) . Such a covenant shall also

subject projects using this exemption to the replacement policies in Sec. 4C.15.1.

(Housing Projects that Result in the Demolition of Dwelling Units) or Sec. 4C.15.2.

(Non-Housing Projects that Result in the Demolition of Dwelling Units), and to LAHD

fees related to housing replacement determinations pursuant to state law, as set forth

in this Zoning Code (Chapter 1A).

iii. For the purposes of this Section (Affordable Housing Linkage Fee), total dwelling units

includes any units added by a density bonus or other land use incentive, consistent with the affordability levels defined in California Government Code Sec. 65915.

c. Any development project being constructed by, or on behalf of: (1) a government or public

institution such as a school, museum, homeless shelter, or other similar projects that are intended for community use; or (2) any private school that offers instruction in grades

kindergarten through 12th grade.

d. Any hospital: local (Sec. 5D.3.5.A.) or hospital: regional (Sec. 5D.3.5.B.) healthcare facility.

e. A single-unit detached home meeting one or more of the following conditions:

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Sec. 15.4.3. (Affordable Housing Linkage Fee) Last amended by Ord. 188,482 (Resolution), Eff. 06/18/2025

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i. Any addition of 1,500 square feet or less of foor areal to an existing single-unit

detached home located on a lot with an applied Residential Use District (Div. 5B.3.) .

ii. New construction of any single-unit detached home located on a lot with an applied

1L Density District that is 1,500 square feet or less of foor areal .

iii. Any replacement of a single-unit detached home resulting in a net increase of 1,500

square feet or less of foor areal from the prior home that existed on the property.

f. Either (1) an addition of 1,501 square feet or more of foor areal to an existing single-unit

detached home located on a lot with an applied 1L Density District, or (2) a replacement

of a single-unit detached home resulting in a larger single-unit detached home with a

net increase of 1,501 square feet or more of foor areal from the prior home that existed

on the property; provided, however, in either event, a covenant shall be recorded against

the property prior to the issuance of a building permit for such addition or replacement

requiring the owner of the property to pay the linkage fee if the home is sold within three

years of the issuance of such building permit. The covenant shall automatically expire at

the end of such three-year period, if no sale of the property has occurred during such

three-year period. However, in the event of a sale of the property within such three-year

period, the covenant shall not expire until a notice of covenant termination is recorded. A

notice of covenant termination shall be provided by the City upon full payment of linkage fee due, based on the fee schedule in effect at the time of payment. The covenant shall

run with the land and bind all successive owners of the property until the linkage fee is

fully paid.

g. An accessory dwelling unit as defined by California Government Code Sec. 65852.2.

h. A residential project that is subject to a greater affordable housing fee requirement or

is required to provide one or more physical housing units pursuant to the Mello Act

( California Government Code Sec. 65590-65590.1), in order to satisfy its inclusionary

housing obligations. In that case, the residential component of the project shall be exempt from the linkage fee requirements of this Section (Affordable Housing Linkage Fee) . Non residential portions of mixed-use Coastal Zone projects shall be analyzed separately from

residential portions of mixed-use projects for the purposes of the linkage fee requirements of this Section (Affordable Housing Linkage Fee) . Non-residential portions of such projects shall be subject to this Section (Affordable Housing Linkage Fee) . The provision of housing

units or in-lieu fees to satisfy replacement housing obligations under the Mello Act, (as

opposed to inclusionary housing obligations) shall not exempt a project from the linkage fee requirements of this Section (Affordable Housing Linkage Fees) .

i. A residential development project that is subject to affordable housing requirements

pursuant to any land use policy or ordinance or development agreement that exceeds the linkage fee requirements of this Section (Affordable Housing Linkage Fee) in either fee amount or on-site affordable housing percentages provided in Subparagraph b. above.

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Sec. 15.4.3. (Affordable Housing Linkage Fee) Last amended by Ord. 188,482 (Resolution), Eff. 06/18/2025

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Fees | ARTICLE 15 Div. 15.4. (Affordable Housing Program Fees)

City of Los Angeles Zoning Code Chapter 1A

j. A residential development project that is subject to affordable housing and labor

requirements pursuant to Chapter I. (General Provisions and Zoning), Sec. 11.5.11. (Affordable Housing) of this Code.

k. Any grocery store, provided there is no existing grocery store within a 1/3 mile radius of

the development project site.

l. Any adaptive reuse project that is a designated historic-cultural monument and is being

converted to a residential use.

2. Protests, Adjustments & Waivers

a. An applicant may protest the imposition of the linkage fee and request that the

requirements of this Section (Affordable Housing Linkage Fee) be adjusted or waived

pursuant to California Government Code Sec. 66020, et seq, based on a showing that the application of the requirements of this Division (Affordable Housing Program Fees) would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the development project. Protests shall be filed with the Director.

b. On or before the date on which payment of the linkage fee is due, the applicant shall

pay the amount required by this Section (Affordable Housing Linkage Fee) and serve a

written notice to the Director with all of the following information: (1) a statement that

the required payment is tendered, or will be tendered when due, under protest; and (2)

a statement informing the Director of the factual elements of the dispute and the legal

theory forming the basis for the protest or request for adjustment or waiver, along with

the substantial evidence that supports the protest or request, including any supporting documentation. The protest must be filed at the time of approval or conditional approval

of the development project or within 90 days after the imposition of the linkage fee. The

City shall provide the applicant with written notice as required by California Government

Code Sec. 66010(d)(1) .

c. If the Director determines that application of the requirements of this Section (Affordable

Housing Linkage Fee) would effectuate an unconstitutional taking of property or otherwise

have an unconstitutional application to a development project, the fee requirements shall be adjusted or waived to reduce the obligations under this Section (Affordable Housing

Linkage Fee) to the extent necessary to avoid an unconstitutional result. The Director shall

render a decision within 75 days from the date the protest was received.

d. If an adjustment or waiver is granted, any change in the development project shall

invalidate the adjustment or waiver. If the Director determines that no violation of the federal or state constitution would occur through application of this Section (Affordable Housing Linkage Fee), the requirements of this Section (Affordable Housing Linkage Fee)

shall remain fully applicable.

Sec. 15.4.3. (Affordable Housing Linkage Fee) Last amended by Ord. 188,482 (Resolution), Eff. 06/18/2025

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Fees | ARTICLE 15 Div. 15.4. (Affordable Housing Program Fees)

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e. Failure of an applicant to comply with the protest requirements of this Section (Affordable

Housing Linkage Fee) or California Government Code Sec. 66020, et seq., shall bar that

applicant from any action or proceeding or any defense of invalidity or unreasonableness

of the imposition of the linkage fee.

C. Fee Calculation

1. The City Council shall adopt, by resolution, a linkage fee schedule based on an analysis of

the cost of mitigating the impact of the additional demand for affordable housing caused by development projects, and on the varying levels of economic feasibility in different geographic

areas of the City based on current market conditions. The City Council shall also adopt, by

resolution, a map or maps establishing the respective market areas throughout the City that

inform the amount of the linkage fee to be assessed for a given development project.

2. For each development project, the linkage fee shall be calculated as the amount of new or

added foor areal in the development project devoted to the uses described in the linkage

fee schedule, as determined by the Department of Building and Safety, multiplied by the

amount of the applicable fee, as found in the most recent linkage fee schedule adopted by

City Council, at the time the building permit for the development project is issued, minus any

deductions or credits.

3. Fee Adjustments and Reports

a. Annual Inflation Adjustment

The linkage fee shall be adjusted annually for inflation every 1st of July, by the Director

in accordance with the latest change in year-over-year Consumer Price Index for Urban

Consumers (CPI-U) for the Los Angeles-Riverside-Orange County area, or if such index

ceases to be published, by an equivalent index chosen by the Director. An updated linkage

fee schedule shall be maintained by the Department of City Planning, which shall provide a

copy of the adjusted schedule to the Mayor and City Council each year.

b. Five-Year Market Area Adjustment

Every five years, beginning on July 1, 2018, the Director, in association with LAHD shall

undertake a new market area analysis and adjust market areas and geographies, where necessary, to reflect the most up to date rental and sales price information for each of the market areas. Any change to the linkage fee schedule other than the Annual Inflation Adjustment described in Paragraph a. (Annual Inflation Adjustment) above shall be adopted

by resolution of the City Council.

4. Deductions or Credits

a. Change of Use

If the development project is the result of a change of use from non-residential to

residential, the linkage fee to be paid is the result of subtracting the equivalent fee amount

that either was paid or would have been paid, based on the pre-existing use, from the fee

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Sec. 15.4.3. (Affordable Housing Linkage Fee) Last amended by Ord. 188,482 (Resolution), Eff. 06/18/2025

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amount required to be paid for the new use based on the most recent linkage fee schedule

approved by the City Council. Deductions or credits shall not be applied to any portion of

a development project comprised of additional foor areal resulting from new construction.

The calculation of a deduction or credit shall not result in a refund to an applicant or be applied as a credit to another development project in a different location.

b. Affordable Housing Units

Any restricted afordable unitf s may be subtracted from the total number of dwelling units

in a building in determining the required linkage fee.

c. Mixed Use

The first 15,000 square feet of non-residential use in a mixed-use building shall be

excluded from the calculation of foor areal for the purposes of determining the required

linkage fee.

d. Transfer of Floor Area Rights

Any additional foor areal that is obtained by a development project through the provision of public benefit payments pursuant to Sec. 9.3.5. (Transfer of Development Rights

Programs) shall be excluded from the calculation of foor areal for purposes of determining

the linkage fee for the development project.

e. Other Affordable Housing Requirements

In calculating foor areal for purposes of determining the linkage fee for a development

project, the following shall be excluded from that calculation:

i. The foor areal of the residential portion of a mixed-use development project that is subject to affordable housing requirements pursuant to any land use policy or

ordinance or development agreement that exceeds the linkage fee requirements of this Section (Affordable Housing Linkage Fee) in either fee amount or on-site affordable housing percentages provided in Sec. 15.4.3.B.1.b. (Exemptions) above.

ii. The foor areal of the residential portion of a mixed-use development project that is

subject to affordable housing and labor requirements pursuant to Chapter I. (General Provisions and Zoning), Sec. 11.5.11. (Affordable Housing) of this Code.

f. Land Dedication

If the Los Angeles Housing Department accepts, on behalf of the City, an offer by an applicant to dedicate land off-site from the proposed location of the development project for the purpose of building affordable housing, the value of the land to be dedicated, to

be determined as the average of two independent appraisals funded by the applicant, may

be deducted from the linkage fee amount owed for the applicant's development project.

If the value of the dedicated land is more than the linkage fee owed for the applicant's

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Sec. 15.4.3. (Affordable Housing Linkage Fee) Last amended by Ord. 188,482 (Resolution), Eff. 06/18/2025

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City of Los Angeles Zoning Code Chapter 1A

development project, the City shall bear no responsibility for the difference in value, nor

shall that overage be applied as a credit to any future development project.

5. Payment of Linkage Fee

The linkage fee is due and payable by the applicant prior to the issuance of a building permit

for a development project. No additional fee shall be required for a project seeking an

extension of an expired building permit application.

6. Refunds of Linkage Fee

Any fee paid under the provisions of this Section (Affordable Housing Linkage Fee) may be

refunded to an applicant if the building permit application has expired and was not utilized to

begin construction of a development project.

D. Severability

If any provision of this Section (Affordable Housing Linkage Fee) is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, that invalidity shall not affect the remaining provisions of this Section (Affordable Housing Linkage Fee), which can be implemented without the invalid provisions and, to this end, the provisions of this Section (Affordable Housing

Linkage Fee) are declared to be severable. The City Council hereby declares that it would have

adopted each and every provision and portion thereof not declared invalid or unconstitutional, without regard to whether any portion of this Section (Affordable Housing Linkage Fee) would

subsequently be declared invalid or unconstitutional.

Sec. 15.4.3. (Affordable Housing Linkage Fee) Last amended by Ord. 188,482 (Resolution), Eff. 06/18/2025

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Fees | ARTICLE 15 Div. 15.5. (Special Use Program Fees)