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Council declines to pursue linkage fees after learning limited local yield and business impacts
Summary
Staff outlined the state statute option to adopt a linkage (in‑lieu) fee to fund affordable housing; council reviewed other Florida jurisdictions—experience and a staff recommendation and the majority of council opposed pursuing a linkage fee study at this time.
City staff presented the statutory framework for a linkage fee — an in‑lieu fee charged on certain new development types intended to fund affordable housing — and reviewed other Florida cities—experiences.
Dr. Correa summarized the state guidance and the required analytical steps, telling council that a nexus study is required and that statute ties any fee to incentives such as density bonuses or waived fees. “It—s a tool for local governments to help support affordable housing,” Dr. Correa said, explaining the statutory tradeoffs and study requirements.
Why it matters: a linkage fee is a local option to raise revenue for affordable units or programs when developers do not provide on‑site affordable housing. Council heard that cities that have used the tool (the staff memo cited Jupiter, Coconut Creek and Winter Park as examples) have collected modest sums over time and must pair fees with density bonuses or other incentives.
Staff brief: the presentation noted that other Florida examples have produced funding but often at modest annual rates; Winter Park—s program was cited as slow to produce large volumes (staff said it had funded a small number of units over decades). Staff also reiterated the statutory requirement to offset fee imposition with incentives such as density or fee waivers.
Council response and outcome: several council members said they were sympathetic to affordable housing goals but worried linkage fees would hit small businesses (restaurants/retail) and would likely produce limited revenue after decades of collection. A majority of council members signaled opposition to moving forward with a nexus study or an ordinance to impose a linkage fee at this time. One council member said the city should instead look at alternative tools and partnerships (for example, working with Habitat for Humanity, the Seminole County Housing Authority, or state programs).
Next steps: staff took direction to not pursue a linkage‑fee study at this time and to continue pursuing other affordable housing avenues; staff will bring forward alternative options and partnerships for council consideration.
