Collier County Commissioners have voted to reinstitute an affordable housing trust fund. It would have a “linkage fee” that developers have to pay, theoretically “linking” their project to the work force that must serve it.
Commercial-retail-industrial developers would have to pay $1 per square foot toward the fund.
Residential developers would have to either donate land, construct 15% of their project on-site as affordable housing, or donate a whopping $200,000 per unit for those 15% of units toward the trust fund!
This is utter insanity. These theoretician-bureaucrats have no clue about business, pro forma budgeting, or profit margins. They see developers as a cow they can just milk for their benefit, failing to recognize when the milk cow has become a beef cow for slaughter.
This is also an indirect tax on the people of Collier County, including business owners and customers who will be paying higher prices for goods and services to cover the increased rent businesses pay for a Landlord’s pass-through cost of the trust fund surcharge.
Collier County has lost its mind on affordable housing. Government intervention in the marketplace typically backfires and leads to further distortions. Left alone, the marketplace will adjust on its own.
There has been lots of discussion of an affordable housing problem – but where is the study backed by meaningful data showing the need? Doesn’t that come first?