Boston Development News

City Council Considers Expansion of Inclusionary Development Policy Fund to $30 Million

The hearing reviewed an order authorizing the Mayor's Office of Housing (MOH) to accept and expand up to $30 million in Inclusionary Development Policy (IDP) fund revenue. This revenue is generated from developers of private residential buildings with ten or more units who either create affordable housing units on-site, off-site, or contribute to the IDP fund. The IDP policy, established in 2000 and updated over the years, aims to support the production and preservation of affordable housing. The funds collected since 2014 total over $217 million, with projections of an additional $26 million over the next two fiscal years, bringing the total projected revenue to $243.5 million. Of this, $188 million has been committed to date, with an expected additional $36 million to be committed over the next two fiscal years. A small percentage is allocated for program management expenses, leaving a balance of approximately $5.8 million for upcoming funding rounds. The hearing also touched upon the impact of potential changes to the radius for off-site unit construction and concerns regarding the Berto regulations and their impact on development costs and feasibility, particularly in colder climates.