Council committee hears plan to accept and expand $30 million in inclusionary development funds

The City Council Committee on Planning, Development and Transportation heard testimony May 30 on Docket 0968, an order authorizing the Mayor's Office of Housing to accept and expand up to $30 million in Inclusionary Development Policy (IDP) fund revenue.

For the record, Rick Wilson, director of administration and finance at the Mayor's Office of Housing, told the committee the office is seeking authority to use IDP receipts to support creation and preservation of long‑term affordable housing. "We are requesting your approval to accept and expand up to $30 million in IDP fund revenue," Wilson said, and described IDP as requiring developers of private residential buildings with 10 or more units to provide affordable units on‑site, off‑site, or make payments into the IDP fund.

Wilson summarized the program's reach and finances: IDP has produced about 8,800 affordable units since inception (roughly 6,800 rental and 2,000 homeownership units), staff reported approximately $188 million invested in those units, and the office has collected roughly $217 million since it began administering the fund in fiscal 2014. Wilson said the office projects to collect about $26 million more over the next two fiscal years for a projected total revenue figure of $243.5 million.

Wilson and other staff identified recent and pipeline projects that have received or are expected to receive IDP funding, including Stony Brook (45 homeownership units), 775 Huntington Avenue (112 mixed‑income units), 95 Average Street (88 rental units, expected 2027), Plan Nubian (15 homeownership units), Blue Hill Avenue/Parcel 12 in Dorchester and Chinatown, and other awards. Staff said most awards are made through competitive processes and that some allocations are subject to change.

Councilors pressed staff on program mechanics and the trade‑offs between on‑site units, off‑site units and payments‑in‑lieu. "Under the IDP policy, the on‑site percentage required was 13% across the board," Andy Feldman said, explaining that off‑site or payment options can result in higher effective percentages (15% or 18%) depending on zoning. Feldman and Wilson said the administration evaluates which compliance method—on‑site, off‑site or payment—is most appropriate for a given project and neighborhood context.

On oversight and monitoring, Christine O'Keefe, director of neighborhood housing development, said projects funded directly by a developer to an off‑site project may not flow through the Mayor's Office the same way that payments made into the IDP Fund do. "When it's an IDP fund project that we are disbursing, we do the underwriting and ongoing monitoring," O'Keefe said. She added that direct designations to partner agencies follow different processes and that the office ensures allocations to projects are the accurate amounts intended.

Several councilors asked about near‑term allocations. Staff read a list of anticipated awards they expect to commit in the next one to two years (Bluebell Avenue, Russell House, 2085 Washington Street, Hancock Building in Dorchester, Parcel 12 in Chinatown, Drexel Village, and others), and reiterated that awards are public record but subject to change.

Councilors and staff also discussed program risks: Wilson said the office has averaged about $15 million per year in IDP revenue but cautioned that a slowdown in development could reduce future collections. "We're definitely worried about the declining IDP revenue," he said, while noting large projects can quickly alter revenue projections.

The committee addressed related policy questions—among them a proposed planning committee change to the off‑site radius in Article 39 (discussed separately at the hearing). Several councilors expressed concern that expanding the radius could reduce the proximity of affordable units to market‑rate development and transit. Staff said a tighter radius helps promote mixed‑income neighborhoods.

No public testimony was taken; the chair said seeing no one signed up to speak, the hearing on Docket 0968 was adjourned and the matter will be placed on a future meeting agenda for further consideration.