Los Angeles, CA Local Taxes & Fees: Affordable Housing Linkage Fee (2026)
Key Facts
- Fee type
- Per-square-foot on new floor area; rate set by City Council resolution
- Annual adjustment
- CPI-U for Los Angeles area, effective July 1 each year
- Affordability exemption threshold
- 40% moderate / 20% lower / 11% very-low / 8% extremely-low income units, restricted for 55+ years
- Small nonresidential exemption
- Buildings with less than 15,000 sq ft of Additional Nonresidential Floor Area are exempt
- ADU exemption
- Accessory Dwelling Units expressly exempt per California Government Code § 65852.2
- Payment timing
- Due prior to building permit issuance
Summary
Los Angeles requires most commercial and residential development projects to pay an Affordable Housing Linkage Fee before receiving a building permit, calculated as a per-square-foot fee on new floor area using a City Council-adopted fee schedule. Projects with significant affordability commitments, ADUs, small additions, hospitals, and government institutions are exempt.
7. "Linkage Fee" means the fee assessed, pursuant to this section, 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 shall apply to any Development Project. Unless a Development Project is exempt from this section, 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.
2. Exemptions. The fee imposed by this section shall not apply to construction that includes any the following:
(a) Less than 15,000 square feet of Additional Nonresidential Floor Area in any nonresidential building, other than parking garages and parking facilities.
(b) Any for-sale or rental housing development containing restricted affordable units where at least 40% of the total units or guest rooms are dedicated for moderate income households, or at least 20% of the total units or guest rooms are dedicated for lower income households, or at least 11% of the total units or guest rooms are dedicated for very low income households, or at least 8% of the total units or guest rooms are dedicated for extremely low income households, for at least 55 years
Full Breakdown
The Linkage Fee applies to any Development Project creating additional housing units or nonresidential floor area. The fee schedule is adopted by City Council resolution and varies by market area and land use type, with automatic annual CPI-U inflation adjustments beginning July 1, 2018. Projects are fully exempt if at least 40% of units are restricted for moderate-income, 20% for lower-income, 11% for very-low-income, or 8% for extremely-low-income households for at least 55 years with an LAHD covenant. Nonresidential additions under 15,000 square feet, ADUs, single-family additions of 1,500 sf or less, hospitals, and qualifying affordable housing projects are also exempt. Payment is due before building permit issuance; no extension of time fee applies to expired permits.
Violations & Fines
No building permit may be issued without payment of the Linkage Fee or documented exemption. Applicants may protest the fee imposition under Government Code § 66020, but must pay the fee and file protest concurrently to preserve rights. Fee refunds are available if the building permit application expires before construction begins.
Frequently Asked Questions
Do I have to pay the linkage fee to build an ADU on my property?
How is the actual dollar amount determined?
Can I avoid the fee by including affordable units in my project?
Sources & Official References
Other rules in Los Angeles
California rules heatmap·Compare Los Angeles to another location·View the California local taxes & fees overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.