|
Ehe ,':!fy core, ~.~ereny reducin§ ~he economic
<br />pressbres ~h;Jt Jend peop{e, .]mployers, and
<br />Mves[men[ ~wa7 from the ciw.
<br /> u~ir~e cities Face housul~ shortages fha[
<br />:hre~cen fha econumic and social welJ-bein~
<br />o[:he~r commumdes. ~n the aDsence o{3
<br />~:oheren[ federal urban policy and si~nifican~
<br />federal fundin~ for affordable housing, incJu-
<br />sion,ap/ znmng provides [,~rge ,::ties with a
<br />markebgased cool ~o ~ddress ~he need ~or a
<br />
<br />L.ARGE-CIT'f CASE STUDIE_$
<br />
<br />'3in,:~ zorm, five maior U.S. cities w~ch popula-
<br />Eh.ms exceeding 400,000 peop{e have
<br />adopted indusionap/housin~ programs.
<br />~oston has :m executive order requirin~
<br />deveh;per,~ ~o build .afferdaole housing in new
<br />develul)rnefl[~;, .]nfl Denver, 5an Francisco,
<br />5an Oiego, 1nd ~acramento have mdusionaw
<br />noLr3m~J drdinances that reqmre affordable
<br />florae% anu ;partmen[s in Raw de,/e!opmen[s.
<br />These [;rograms provide [raibblazing exam-
<br />pres chat other urban ,:enters can follow.
<br />
<br />~o$[.nn
<br />
<br />Background. l-he e.'sonomic boom of the
<br />umos rais[:d income !e,/e!s (or Soston area
<br />resinen[s, dui hm.lsin~ prices ',veH[ even
<br />hb/tler, s,)arm~ if i,louoie-,]J~it pac~.As con-
<br />~:rLIC[]()[I .~[1(] .,nl[J ,}O~Z2 :rlcFeasad, '~en[rlfica-
<br />
<br />f) ~lJIr,')lJlj(J~l/~ ,q~I'~nDOFllOO~15, :Jisplacin~
<br />,~l~)d[?r.'i[.,]-dIC )ina families, n .~Qdi[IOU. afford-
<br />
<br />::Ut :[l(ZltJ'~orIL~nl noIJ'.~Jrl~ pro,ram ~las ~aiJin'~
<br />
<br />Thomas MenJno to sign an execuuve order in
<br />Febfuar,/ 2000 crea[in§ an inctus[onap/hous-
<br />fa§ policy.
<br />
<br /> The program. Under @oston's policy, any
<br />residential proiecr~ that contains fen or more
<br />units and, t) is financed by the City of 8oston
<br />or the 8oston Redevelopmen[ Authority (BRA),
<br />2) is t.o be developed on property/owned by
<br />[he city or 8RA, or 3) requires zon.ing relief.
<br />[ri§gars ~_he requirements of the pro§ram. Oue
<br />to the antiquity of (he city's zonin§ code.
<br />nearly alt residential developments over nine
<br />units are covered by the executive order.
<br />
<br /> The 8psion policy states ;hat in ]1[ quali~/-
<br />lng de,/e[opments, to percent of the housing
<br />units must be affordable. While the policy pro-
<br />,/ides for off-site development of affordable
<br />units, a develooer who exercises [his option
<br />must include a tS percent (ra[her than ~o per-
<br />cent) affordable component. This requirement
<br />creates an incentive for developers to con.struct
<br />(he affordable units on-site. Boston's pro§ram
<br />also altows for a fee-in-lieu payment to BRA.
<br />
<br /> The results. In [he initial year of imp emen-
<br />tn[ion, el§hr privately financed h gh-end housing
<br />developments were subject ~.o [he policy
<br />requirements. As a result, approximately 246
<br />affordable units were constructed with many
<br />more in the pipeline. A total of$~.$ miition in
<br />fees were collected, with mi[lions more commit-
<br />(ed. New i~ousin§ development continues [o
<br />boom in Boston. and deve(opmen[ p(ojects
<br />remain iucrat~ve, even with [he affordable unit
<br />~ebaside requirement. ?!eased with ;_he results
<br />;hus far, (he cibl is now ~:onduccin§ ~ demons::a-
<br />don proiecz (o see how .a tS patten[ ~ffordabiiiw
<br />Feeuiremen( wouJd NOFK.
<br />
<br />3ackground. Denver ;las .)ne )f ~he qewes;
<br />
<br />The ordinance, passed by [he cib/councit in
<br />2002 in response to (he city's workforce hous-
<br />ing needs, was .an amendment of the housing
<br />and zoning codes [o c~ea[e a moderately
<br />priced dwellin§ unit (MPOU} program.
<br />
<br /> The progrom. Unlike many focal inclu-
<br />s[onar,! zoning ordinances, the Oenver pm-
<br />gram covers new construction and existin§
<br />buildings ~hat are bain§ ;emode!ed [o provide
<br />dweiling unks. Most programs cover new con-
<br />strucdon onty. Existing devetooments fha[ are
<br />for-sate must [nciude a ~o percent affordable
<br />componenL Because of a state statute and a
<br />Colorado Supreme Court futin§ prohibitin§
<br />[ocat ordinances from [imiting rent [eve{s,
<br />
<br />SC NI N C, Pq,~,CTiCE z,a.oa
<br />
<br />
<br />
|