Department Memo June 25, 2019

The Affordable Housing Linkage Fee (AHLF) Ordinance (No. 185,342) was adopted by the City Council on December 13, 2017, establishing a fee on certain new market-rate residential and commercial development to generate local funding for affordable housing. The City Council subsequently adopted the fee schedule by resolution on June 29, 2018. LAMC Section 19.18 C.3(a) specifies that the fee schedule will be adjusted annually for inflation beginning on July 1,2018 using the latest change in the Consumer Price Index for all urban consumers (CPI-U) for the Los Angeles-Riverside-Orange County area, or if such an index ceases to be published, by an equivalent index chosen by the Director. In January 2018, the Bureau of Labor Statistics introduced a new geographic sample for the CPI that utilizes separate indexes for Los Angeles and Riverside. Therefore, the AHLF annual inflation adjustment is based on the CPI-U for the Los Angeles-Long Beach-Anaheim Area.
The calculated inflation adjustment effective July 1, 2019 is 3.1%, based