Builders Told to Include Low-Income Housing

Residential developers must now build affordable housing or pay steep fees, but not as steep as city leaders originally intended.

This week, the City Council gave final approval to an Inclusionary Housing Ordinance that forces developers of 10 or more units to set aside homes for low-income families or pay an “in-lieu” fee.

The resulting funds will go toward the city’s Infill Housing Program, which offers strategies to transform abandoned and neglected properties into quality affordable housing.

The fee originally was set at 10% of the construction costs for a market-rate home, times the number of units in the complex.

Similar ordinances throughout the Bay Area require much lower amounts.

Fearing developers might abandon the city, council members lowered the fee to 7%.