Hasidic-owned market-rate developments are also planned for the south side, but they will include some low-income units.
In the rest of the city, market-rate developments would remain eligible for the tax break, but under stricter rules.
The housing plan would allow for the construction of more market-rate developments, providing a proportion of them were categorized as affordable.
Developers have argued that tightening the tax-break program too much could slow housing construction; housing advocates say giving tax breaks for market-rate developments is, in effect, subsidizing gentrification.
The program is aimed at creating low- and moderate-income housing by providing developers who build such projects with zoning bonuses that can be used for market-rate developments nearby.
A year later, the first tenants moved into the Ethel R. Lawrence Homes, town houses whose clean, contemporary exteriors and manicured lawns blended in with nearby market-rate developments.
Although rents in market-rate developments, which are built without any subsidies or tax breaks, are not cheap -- what the Lorches are paying, $1,350 for two bedrooms, is typical -- the apartments are big enough to attract people used to the space provided by a single-family house.
The city subsidizes the construction of new affordable housing through market-rate developments, and if you want to bump the allocation for affordable housing higher, you'd probably need to allow more density or height to make the numbers work.
At a conference I attended at the Federal Reserve Bank a few weeks ago about displacement, there was a lot of discussion about the "collateral damage" that new, market-rate developments can have on surrounding ground-floor and residential rents and whether city governments should assess higher impact fees for that.
We are completely eliminating the tax break for pure market-rate development".
"But when it was going to market-rate development in our neighborhood, it was a real problem".
