The CDC offers incentives, such as allowing more units and flexible design to encourage affordable housing, but the way the program is set up, only nonprofit developers can realistically use it.
The current 'all or nothing’ incentives limit who can participate. Right now, every unit in a building must be income-restricted to qualify for the incentive. Most for-profit developers need a mix of market-rate and affordable units to make a project work financially. Allowing developers to make just a portion of units affordable would likely bring more developers to the program and result in more affordable units overall.
Raising the income threshold from 80% to 100% of the Area Median Income (AMI) could expand the program’s reach. A higher threshold would make the incentive available to more project types and developers, while still helping people who earn below the local median income.
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