According to a report from the Boston Business Journal, NAIOP Massachusetts has requested that city officials postpone the implementation of new affordability requirements for market-rate apartment and condominium projects under the Wu administration. The organization believes that these rules will result in a decrease in housing construction and hinder growth goals for the city.
The current requirement mandates 13% of residential projects to be designated as affordable housing, but this is set to increase to 20% starting October 1st. In a letter addressed to Boston’s housing chief Sheila Dillon and interim planning chief Devin Quirk, NAIOP Massachusetts CEO Tamara Small expressed concern over how these regulations will further discourage developers from building in Boston and drive up costs for market-rate housing.
Developers have also voiced their frustrations with additional rules related to affordability and climate change, stating that they make it more challenging or even impossible for them to see an adequate return on their investments within the city. This information was reported by Connect CRE after reviewing complaints made by various individuals within this industry as documented by Business Journal sources.
