The state of Arizona doesn't allow local jurisdictions to charge affordable housing fees for new developments, so the city of Phoenix is offering tax breaks as an incentive instead.
The Phoenix City Council approved a new policy that trades incentives, like a tax break of a height bonus, for affordable housing, reports Jessica Boehm.
The incentives will be offered to developments in downtown that build at least 10 percent affordable units into the project total.
"The City Council uses a rubric to determine whether to approve an incentive in the downtown core. A project will score additional points on the rubric if a portion of the units is offered at a discounted rate, making it more likely for the council to approve the incentive," according to Boehm.
According to the city's analysis, the downtown core currently offers zero units of housing for residents who make workforce levels of income—between $38,000 to $48,000 a year.
Read the full story: Want a tax break in downtown Phoenix? You may have to pay for it in affordable housing
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