From today’s Boston Globe:
Boston Mayor Thomas M. Menino yesterday called for doubling the fees developers will have to pay if they do not build city-required affordable housing units at their residential projects.
Developers must reserve a certain percentage of the units in their projects as affordable housing; the amount equals 15 percent of the market-rate units they intend to build. Projects with under 10 units are exempt.
In some circumstances, a developer could opt out of building affordable housing on-site by making a payment to a city fund … The city would then use that money to help build affordable housing elsewhere in Boston.
Menino said he will increase the opt-out fee to $200,000 per unit for rental housing.
With condominium developments, developers would pay either $200,000 per unit or at least half the difference between the price of a market-rate unit and the cost of an on-site affordable unit, whichever is greater.
Well, that’ll cause a lot of headaches for developers, don’t you think?