Boston Mayor Michelle Wu announced a proposal for “targeted adjustments” to the City’s inclusionary zoning and linkage policies to “to help more projects move forward and create more affordability.” Currently, the City requires eligible multifamily developments to set aside 17% of units for income-restricted uses, or alternatively to contribute funding to affordable housing. Proposed changes include the following:
- Raising the minimum threshold for eligible developments from 7 units to 10 units for two years;
- Extending the alternative contribution payment schedule from 2 payments to 7 payments; and
- Reducing the condo payment-in-lieu fee from 75% to 50% of the difference between market-rate and income-restricted home values.
The proposal must receive approval from the Boston Planning & Development Agency Board, the Zoning Commission, and the City Council. Administration officials indicate their continued support for a minimum 17% income-restricted unit set-aside. By contrast, other Boston-area cities like Chelsea, Malden and Waltham have reduced their minimum set-asides for income-restricted units as a response to development shortages. For more information on Mayor Wu’s proposal, visit this link.