The Linkage Fee and Parcel Tax being bounced around City Hall will not solve our city's affordable housing crisis. Look at cities with linkage fees for evidence.
San Francisco, Boston, Seattle, and Palo Alto all implemented expensive linkage fees without a resulting change in the trajectory of housing affordabilty It's essential that affordable housing advocates and public sector officials understand the real estate industry is not a limitless piñata.
At best, the proposed new costs will be passed along to the buyers or tenants. At worst, these new fees and taxes signal to the world that Los Angeles is unfriendly to private sector real estate development.
At a time when government should be embracing the private sector as a partner in addressing the affordable housing crisis, these proposals make that alignment increasingly difficult. For only the private sector has the access to capital and production capacity to build new housing units at the volume and speed needed to solve the problem.
One reason I started Pactriglo is because the housing crisis is so severe it requires new ideas and new thinking. Linkage fees and parcel taxes are neither.