LOS ANGELES—Los Angeles Mayor Eric Garcetti signed into law on Tuesday, December 12,  the Affordable Housing Linkage Fee, an initiative aimed at spurring construction of affordable housing units throughout Los Angeles.

According to a press release from the Mayor’s Office, the goal of the linkage fee is to “help Los Angeles double its production and preservation of affordable housing.” The ordinance also implements more incentives for the creation of mixed-income developments.

Newly authorized fees will charge developers $3 to $5 a square foot for new commercial space construction and $8 to $15 per square foot for residential developments. The linkage fees are expected to generate between $75 million to $92 million annually.

According to the Los Angeles Planning Department, the money would help pay for the construction of over 1,500 new affordable housing units per year. The ordinance comes at a time when rent and the cost-of-living are at all-time highs in Los Angeles – federal data reveals that the average rent in the city are north of $2,000 per month.

The linkage fee directive was first proposed by Mayor Garcetti in 2015 as part of a sweeping plan to help control the city’s skyrocketing housing markets.

In a statement, Mayor Garcetti highlighted the importance of this measure for all Los Angeles residents.

“Ending the housing affordability crisis is essential to securing Los Angeles as a place where every Angeleno — no matter their income — has an opportunity to build a life in our community,” he said. “The Affordable Housing Linkage Fee is a critical investment in making that future possible for all of our families.”