Starrion t1_j9tsjk8 wrote on February 24, 2023 at 2:43 PM

Reply to comment by EasternMotors in 95% of Bay Area Cities Lost Zoning Authority: In 105 jurisdictions of the Bay Area, anyone can build any residential projected at any height or density so long as 20% of the units are for low income. by dolphins3

These units aren’t subsidized. The builder has to offer them to get them built. We really need to asses the effects of things like Airbnb on our housing supply. There isn’t enough space in many regions to increase stock without building high density developments.

EasternMotors t1_j9u4v83 wrote on February 24, 2023 at 4:06 PM

They are subsidized. The difference between market rate and the rate paid is the subsidy. It doesn't matter that the government agreed to forgo some benefit ($$) instead of spending money to directly subsidize.

Fantastic if you are one of the upper middle class people getting the housing subsidy. If you aren't one of those people, you paid for the subsidy.

Starrion t1_j9udx98 wrote on February 24, 2023 at 5:03 PM

Local government loses the chance to block development. There is no cash cost to the town that can be counted as a subsidy. The only net effect for the town is that people were able to buy the units cheaper or rent for cheaper than if the development wasn't built under that rule.

Putting payments to all would simply cause prices to rise further if you have more money chasing the same scarce housing stock.

EasternMotors t1_j9uk5it wrote on February 24, 2023 at 5:43 PM

The cost is whatever they could have obtained instead of the subsidized units. Google "community benefits agreement" for examples.

Starrion t1_j9urpwg wrote on February 24, 2023 at 6:31 PM

That would be valid IF the towns or cities were willing to negotiate towards building the development. In most cases the developments are built in spite of the towns objections, so there is no CBA asked or offered.