The bill passed Thursday only applies to developers seeking height and density bonuses for properties with 10 or more units. Under the program, developers with projects with fewer than 10 units are not eligible for any mixed-use bonuses if they opt to contribute to the housing trust fund in lieu of building affordable units. They must build affordable housing on-site to earn a bonus for height or density.
The measure also includes a provision designed to encourage the preservation of active commercial corridors. That provision bars developers from getting a mixed-use bonus if they are also getting a zoning variance for residential use in a ground-floor commercial space.
Mo Rushdy, the treasurer of the Building Industry Association, said he supports the bill’s goal of creating more affordable housing, but not all its mechanisms for achieving that. He said increasing the trust fund contributions makes sense, but not if certain developers are barred from receiving a mixed-use bonus if they go that route.
The bill also bars developers building in a short list of zoning districts (RM-1, CMX-1, CMX-2, or CMX-2.5) from receiving a height bonus if they choose to contribute to the housing trust fund.
“You’re going to see a huge drop in the money going towards the Housing Trust Fund. Second, you’re not going to see an increase in the affordable units. Three, is that you’re going to lose out on jobs that otherwise would have worked and therefore you lose on the economic impact of these jobs,” said Rushdy.
The bill was created in consultation with the city’s Department of Planning and Development, indicating it has support from Mayor Jim Kenney’s administration. “What we’re trying to do with these bills is provide an opportunity in every neighborhood for people of various incomes to have access to those neighborhoods,” said Anne Fadullon, who directs the department.