Too many developers chose to pay in-lieu fees to the Maryland city, and the inclusionary housing program was not producing much affordable housing.
"The city of Annapolis, Maryland, is changing a 15-year-old policy meant to produce modestly priced homes after finding that the program has barely worked," writes Jared Brey. The city’s inclusionary housing program, the Moderately Priced Dwelling Unit Program, had only produced 18 rentals units and 10 homes for purchase since 2004.
Most developers were opting to pay an in-lieu fee that city officials say was not high enough to allow the city to develop affordable housing. "So last week, as the Capital Gazette reported, Annapolis City Council voted to update the program, requiring moderate prices on 15 percent of both for-sale and rental units, and eliminating the in-lieu fee altogether," says Brey.
Raising the fee was an option, but the city decided that Annapolis did not offer enough development opportunities, notes Brey. "[The city council] wanted to squeeze as many moderately priced units out of the program as they could, [Alderman Marc] Rodriguez says."
Read the full story: Running Out of Land, Annapolis Tweaks Housing Policy
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