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Boston BPDA backs linkage fee freeze and inclusionary zoning changes

Boston BPDA backs linkage fee freeze and inclusionary zoning changes

Rule Changes Boston, MA local

Board also approves 476-unit conversion at 31 St. James Ave., largest under city program

Today: BPDA board backs linkage freeze and zoning changes

Overview

Updated 1 hour ago

Boston's planning board backed a freeze on the fees commercial developers pay toward affordable housing and job training, and loosened affordable-unit rules for small multifamily projects. The changes still need City Council and Zoning Commission approval.

The Boston Planning & Development Agency (BPDA) board also approved six projects, including a 476-unit conversion at 31 St. James Ave. that is the largest under the city's office-to-residential program. The changes expire after two years.

Why it matters

The freeze holds Boston's linkage fee at $30.78 per square foot for labs and $23.09 for other commercial projects.

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Key Indicators

$30.78
Lab linkage fee
Frozen at current level instead of a scheduled 4.1 percent January increase.
$23.09
Other commercial linkage fee
Applies to commercial projects over 50,000 square feet.
4.1%
Scheduled linkage fee increase
Would have taken effect in January; planning staff recommended no increase.
10
Small multifamily exemption threshold
Projects under 10 units exempt from income-restricted units, up from seven.
476
31 St. James Ave. conversion units
Largest office-to-residential conversion approved under the city program.
95
Income-restricted units at 31 St. James
Included in the 476-unit conversion.
$410M
31 St. James conversion cost
Developer estimate for the 11-story Art Deco building conversion.
774,000 sq ft
Development approved at meeting
Six projects totaling nearly 774,000 square feet.

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People Involved

Kairos Shen
Kairos Shen
Chief of Planning, Boston
Recommended the linkage freeze and inclusionary zoning changes
 Sheila Dillon
Sheila Dillon
Chief of Housing, Boston
Recommended the linkage freeze and inclusionary zoning changes
 Michelle Wu
Michelle Wu
Mayor of Boston
Her office said changes apply to new applications; existing projects case-by-case

Organizations Involved

Boston Planning and Development Agency (BPDA)
Boston Planning and Development Agency (BPDA)
City development agency
Board backed changes; final approval pending

The city agency that reviews major development projects and advises on planning policy.
MO
Mayor's Office of Housing
City housing agency
Said changes apply to new applications; existing projects case-by-case

The city office that oversees housing policy and affordable housing programs.
IS
Inspectional Services Division
City permitting agency
Will decide case-by-case modifications for projects already in permitting

The city office that reviews building permits and inspections.
VG
VanBarton Group
Real estate developer
Approved for 476-unit conversion at 31 St. James Ave.

The developer behind the largest office-to-residential conversion approved under Boston's program.

Timeline

2022 November 2026

4 events Latest: Today
Tap a bar to jump to that date

  1. BPDA board backs linkage freeze and zoning changes

    Today Policy

    Board also approved six projects, including the 476-unit 31 St. James Ave. conversion.

  2. Small-project exemption set at seven units

    Policy

    Boston set the exemption at seven units and raised the condo buyout fee to 75 percent.

  3. Inclusionary zoning update proposed

    Policy

    Developers warned it would make condo development harder to finance in lower-priced neighborhoods.

  4. Linkage payment schedule changed to two installments

    Policy

    Boston changed linkage payments to two installments, including one at building permit.

Scenarios

1

City Council and Zoning Commission approve linkage freeze and zoning changes

Likely Resolves by Q2 2027

Discussed by: BPDA board and city officials

The BPDA board has backed the changes, but they still need City Council and Zoning Commission approval. If approved, new multifamily applications would face looser affordable-unit rules and commercial developers would pay the frozen linkage fee for two years.

2

Linkage fee rises 4.1 percent in January as scheduled

Possible Resolves by Jan 31, 2027

Discussed by: Planning Department staff memo

If the changes stall or are rejected, the scheduled January increase would take effect. The fee would rise 4.1 percent instead of staying at $30.78 per square foot for labs and $23.09 for other commercial uses.

3

31 St. James Ave. conversion starts construction by end of 2027

Possible Resolves by End of 2027

Discussed by: VanBarton Group and BPDA

The BPDA board approved the 476-unit conversion at 31 St. James Ave. at an estimated cost of $410 million. A construction start would test whether the largest conversion under the city program can move from approval to building.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

October 2024

Boston inclusionary zoning update (2024)

Boston set the small-project exemption at seven units and raised the condo buyout fee to 75 percent of the price gap between market-rate and affordable units. Developers warned the rules would make condo development harder to finance in lower-priced neighborhoods.

Then

The changes took effect and shaped affordable-housing requirements for new projects.

Now

The BPDA now proposes reversing parts of the 2024 update, including lowering the condo buyout fee to 50 percent.

Why this matters now

The current proposal rolls back key parts of the 2024 rules, showing how quickly Boston is adjusting housing policy to financing conditions.

2022

Boston linkage payment schedule change (2022)

Boston changed linkage payments to two installments, including one made when a building permit is issued. Planning staff later said the two-payment schedule seemed like an unnecessary barrier to entry.

Then

Commercial developers faced a faster payment schedule for linkage fees.

Now

The BPDA now proposes returning to seven equal annual payments to ease cash flow.

Why this matters now

The reversal shows the city trying to lower upfront costs for commercial projects as office and lab vacancy remains high.

2023

Boston inclusionary zoning proposal (2023)

Boston proposed an inclusionary zoning update that developers warned would make condo development harder to finance in lower-priced neighborhoods. The proposal set the stage for the 2024 rules now being partly reversed.

Then

The proposal led to the October 2024 changes.

Now

The BPDA is now loosening some requirements to encourage more for-sale condo projects.

Why this matters now

The current changes are the latest turn in a multi-year debate over how much affordable housing Boston should require in new projects.

Sources

(1)
Banker & Tradesman