Feb 07 2008
New Tax on Housing to Create Affordable Housing
I think this is probably a good compromise bill, but it seems pretty heavy handed:
Senate Bill 268 to the Local Government Committee, which voted 14-0 to approve the scaled-back compromise measure allowing the city to collect money from a developer in lieu of affordable housing units on or off the site of a high-density project.
Under the bill, the city could approve a rezoning or a special-use application for a high-density residential or residential and mixed-use project and collect money from the developer as a contribution to the city’s affordable housing fund.
The phrase “collect money from the developer” is code for “put an enormous tax on development to further drive up housing prices”. It seems self-defeating to tax housing to get more money for affordable housing. As I understand it, this bill applies to larger developments, so the tax – or mandatory payment from the developer for the privilege of doing business if you prefer — wouldn’t necessarily effect smaller, custom home builders.