Earlier this week, the Los Angeles City Council approved a plan that would implement a “linkage fee” on new developments rising throughout the city. The monumental decision will undoubtedly play a role in the city’s efforts to offset rising residential costs in a market that simply can’t afford it. 

The new measure, which has long been spearheaded by LA Mayor Eric Garcetti even after its initial rejection from the council last year, is estimated to rake in between $75 to $92 million a year, according to a staff report. 

Per the Los Angeles Times, the term “linkage fee” was coined to “link” housing developers with low-income residents. Over the past few years, the city has seen a massive rise in luxury condominium developments and the steady increase of homelessness around many of its neighborhoods. While supporters of the fee applaud the new fee, opponents claim the new charges only push developers to further drive up housing costs.

The new measure will impose a development fee ranging between $1 to $15 per square foot, based on the city’s geography. Higher fees will be implemented in popular “high-end” neighborhoods throughout the Westside, while lower fees will be implemented in low-income areas such as San Pedro and South LA.

Exceptions include the construction of schools, hospitals, public museums, and residential additions smaller than 1,500 square feet. Developers that include a set number of affordable housing for low- to moderate-income households will also have the fee waived.