Public comments for: West Chelsea Affordable Housing Fund Contribution Rate

Comments

Comment:
While I support the proposal to sell new air rights for contributions to the Affordable Housing Fund, there are three problems with the current proposed text. First, the price does not appear to be adjusted for inflation. Any proposal should, at a minimum, provide that the price should be annually adjusted by the standard means that the city uses to adjust for inflation. Second, $500 appears to be an arbitrary and low number. The City should value air rights based on a formula tied to the average price per square foot of land in West Chelsea. I would suggest valuing air rights at 40% of the mean price per square foot of residential space. In Chelsea, land is worth approximately $1800 per square foot according to Trulia. Based on the proposed formula, that would lead to a price of $720 per square foot for air rights. This would raise additional funds for affordable housing. Third, given that the goal of the sale mechanism is to raise funds for affordable housing, the City should sell air rights at a deeply discounted rate to buildings that provide more permanently affordable housing than is otherwise required. I would suggest the following formula: - For 121-165% AMI, 25% discount per square foot of permanent affordable housing - For 81-120% AMI, 50% discount per square foot of permanent affordable housing - For below 80% AMI, 100% discount per square foot of permanent affordable housing (i.e., free air rights for deeply affordable housing) Sincerely, Joseph M. Sanderson
Agency: DCP