Q&A
Rationale for increasing density and importance of MIH
0:31:14
·
98 sec
David Rosenberg explains that increasing density is crucial for enabling permanent income restrictions under Mandatory Inclusionary Housing (MIH) without public subsidy. The increased market-rate density offsets the costs of affordable units in a high land value and construction cost environment.
- Increased density enables MIH without public subsidy
- Market-rate density offsets costs of affordable units
- Project aims to address gentrification and affordable housing needs
David Rosenberg
0:31:14
So The increasing density is important here because that is what enables the permanent income restrictions of NIH to work without public subsidy.
0:31:26
Obviously, the city has capacity to fund affordable housing in certain circumstances.
0:31:32
For for the record, we've had extensive discussions with the city about being able to work to increase affordability here, and the administration has told us that such funding is not available for this project.
0:31:45
But overall, the thinking of NIH back when it was introduced now 8, 9 years ago was that the increase in density of market rate density is what offsets the carrying costs for the affordable units.
0:32:00
And so to build this thing entirely market rate, a 2016 when land values are high and construction about costs are high, the only way to do it is to do is to develop market rate because that there's just nothing there that accounts for the that the cost of building the affordable units is higher than the rents you can generate from those units.
William Wallace IV
0:32:21
Which is exactly why we sought the up zoning councilwoman.
0:32:26
We did not want to be the bringer of non union market rate luxury condos in a community that is suffering enormous gentrification and needs affordable housing.
0:32:38
So the purpose was to purchase it and build something that addressed that versus as our neighbor's next door are doing just do market made condos I don't think anyone on the council wants market rate condos, which is why we're trying to salvage the project.
