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Originally Posted by Gatorade_Jim
Mandatory affordable housing just increases rental prices for the rest of us unless the government subsidizes it to offset the cost. I'll have to look into the zoning overlay to see if the government does. It's not as though the cost of construction goes down. It's just split over fewer units. Philly is already doing much better than our peer east coast cities on housing cost. But sure, delay new units coming to market.
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As a wholesale policy I definitely agree… however I’m not sure I agree in the case where the city sells the land to a developer with the restriction that affordable units must be built on site in future development. Land sellers are within their right to place restrictive covenants and in this case it would only apply to this property, not across the board. This doesn’t affect supply/rents because the purchaser will have taken into account the restriction and taken value out of land proceeds instead. Very common for the government to require affordable housing on public dispositions. It will depend on the wording of the contract and may come down to a lawsuit because the developer clearly didn’t think they had to abide by it. Would have to know the exact language.
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