Market studies demonstrate that building new market-rate homes is linked to the growth of low-wage jobs. Providing an adequate supply of affordable homes for these new low-wage workers requires a subsidy. Identifying the nexus between market-rate development and the need for affordable housing provides the justification for cities to adopt housing impact fees.
In April, the City Council of Daly City adopted an Affordable Housing Ordinance that establishes an impact fee for rental housing development. Later this month, the City of Emeryville will consider adopting a housing impact fee as well. The City of San Jose and cities within San Mateo County are currently in the process of developing nexus studies to determine appropriate housing impact or commercial linkage impact fees for their respective communities.