IRVINE : Affordable-Housing Fee Levels Delayed

The City Council this week delayed setting fees for a controversial interim ordinance that would fund affordable housing by charging builders of new commercial projects.

The fees would be set no later than August, when final versions of the proposed law are expected to come before the council. A temporary version of the law was adopted last year when the council required that 25% of all new housing be affordable to those who earn roughly $36,000 per year, or 80% of Orange County’s median income. The county’s median income is $47,000 per year. Known as “linkage fees” because they link anticipated business growth to projected housing needs, the charges would be based upon square footage of a development, according to a study by a council-appointed committee.

Fees in the vicinity of $3 to $5.50 per square foot, depending on the type of business or industry, have been suggested in committee discussions. The money from the fees would be placed in a trust fund.

The fee levels are being opposed by the Irvine Co., which proposed linkage fees as an alternative to the city’s affordable housing quotas for residential developments. Company officials want the fees to be limited to $1 per square foot for office development and 50 cents per square foot for all other types of development, including residential.

Mayor Larry Agran asked that the proposed law include possible fee exemptions and the option for the city to administer the housing trust fund. The fund is envisioned as a way the city could lure new workers who might not otherwise be able to afford living in the city.