Oakland City Council passed a new housing development impact fee to take effect this September in a 7-1 vote this week. The funds generated will be used for infrastructure upgrades and affordable housing.

The impact fee will depend on the location of housing projects in the city, according to the San Francisco Chronicle. The initial rate will range from $750 to $7k per market-rate unit in the first year, but will grow through 2020 to range from $13k to $24k.

The move was described as a middle course by the city council. The staggered rollout of fees was planned some time ago and was designed to induce developers to include affordable housing in their projects or pay a fee for the city to build those units itself.

Developers and activists are unhappy with the plan for different reasons. Residential builders contend the plan will impede new housing construction, exacerbating the housing crisis. Community advocates say the plan is too slow and doesn't go far enough.  [SFC]