According to an article recently published in the Aspen Times, city leaders are setting a date to change the going mitigation rate for residential projects while maintaining affordable housing. Currently, the rate is considered to be “far too low” at $76 per square foot for the developer’s fee to the city for building affordable housing.
The anticipated rise in rates is due to the fact that construction costs far more than the tax. In Burligame, Phase II went for about $509 per square foot (of livable area). Main Street’s affordable-housing project went for $350 per square foot to initiate, yet after adding construction costs “the total comes out to $520 per square foot”. Local homeowners are now receiving figures and surveys in order to gauge public opinion on affordable-housing-mitigation rates for anticipated residential projects.
An independent company, Boulder Firm RRC Associates, will receive the data submitted as an independent research and conduct a study that will weigh out to be $33,000. These results are anticipated in October or November. Large, multimillion-dollar projects will be unaffected by this snag to professional developments. However, for Aspen homeowners, it will affect their property value. To determine the appropriate level of affordable housing, along with the rate and other logistics, the city council plans on holding an open meeting in the future to go over these concerns.
Read original publication referred to here.