Councilor Worrell, who chairs the Committee on Ways and Means, highlighted the challenges posed by high interest rates and construction costs, which have contributed to the slowdown in development. He pointed out that only about 10% of the planned units are designated for homeownership, emphasizing the need to increase this percentage to combat wealth disparities and displacement. The proposed fund would offer various models for developers, including tax incentives for unsold units and investments in projects that convert rental units into affordable condos.

Jim Grossman, founder and CEO of RISE, supported the financial viability of the proposed models, noting that they had passed the necessary financial tests to secure bank financing. The strategy aims not to subsidize, but rather to invest in market-rate housing developments, anticipating returns that would benefit the city financially.

The meeting also delved into the complexities of financing mixed-income housing projects, drawing comparisons to successful models from other regions like Montgomery County, Maryland. The council discussed the importance of public-private partnerships and innovative financing solutions to lower the cost of capital, making unviable projects feasible. A pilot project in Charlestown was proposed to test this investment strategy, with careful consideration of the minimum necessary public funding to ensure project viability.

In addition to housing, the council addressed the allocation of $2,225,000 for a feasibility study related to the Paul Agassiz Shaw and Charles H. Taylor Elementary School in Mattapan. This initiative marks the beginning of collaboration with the Massachusetts School Building Authority (MSBA) to improve educational facilities. The council emphasized the significance of investing in school infrastructure to better serve students, especially those requiring special education programs.

There was a strong emphasis on ensuring that development efforts benefit diverse communities, including women-owned businesses and communities of color, which have historically been underrepresented in development projects.

The council also considered the potential impact of a new inclusionary zoning policy requiring a percentage of new developments to be designated as affordable housing. The administration expressed confidence in these regulations as a means to expedite the construction of over 20,000 already approved projects, highlighting the need for affordable housing to address Boston’s ongoing crisis.