Wu Proposes Easing Boston Affordable Housing Rules to Revive Development

Boston Mayor Michelle Wu has proposed revisions to the city's affordable housing requirements, aimed at reviving multifamily construction that has slowed sharply. The changes target the Inclusionary Development Policy (IDP) and the linkage fees charged to commercial projects.

The IDP currently requires new multifamily buildings to set aside 17% of units as income-restricted, plus 3% for Section 8 voucher holders. Wu's plan keeps those percentages but raises the project size threshold from seven units to 10 for two years. It also eases payment-in-lieu options. Developers paying into the city's affordable housing fund would pay in seven installments instead of two lump sums. Condo developers would owe 50% of the value gap instead of 75%, and off-site units would no longer need to be within a half-mile of the project.

On linkage, the proposal would freeze fees at current levels through 2027 and spread payments over seven installments.

Wu said the policies have helped create more than 2,900 affordable homes over five years. Several real estate leaders, including executives from Beacon Communities, National Development and Samuels & Associates, supported the changes. A tenant advocate said she was pleased the core percentages were unchanged. The proposal still needs approval from the BPDA Board and the Boston Zoning Commission.

For developers and lenders, looser payment terms and a higher unit threshold could improve project feasibility, but final terms depend on upcoming board and commission votes.