Source: Philadelphia Inquirer
Date: November 17, 2008
Byline: Gregory Heller

Letter: Inclusionary housing no cure-all

Re: "Affordable Housing," editorial, Wednesday:

Philadelphia has many low-priced homes and apartments, but they are clustered predominantly in very poor areas. Inclusionary housing makes sure that where new market-rate homes are built, a portion of them are affordable. Most American cities recognize this kind of income integration as a critical goal. Still, it is important to remember that even the most successful inclusionary programs are not a silver bullet, and are not a replacement for public housing.

In Philadelphia's tenuous housing market, this would be an added cost to developers. It is an important program, but we need to implement it in a way that is legal and financially viable.

With inclusionary housing, developers take a loss on the below-market units. For this reason, the courts have found inclusionary housing to be legal only when the city provides developers substantial incentives.

Because the burden falls on the private sector, the affordable units cannot be priced too far below market. Thus, inclusionary housing has been more effective in providing units for those of moderate income than in providing housing for the poor.

Inclusionary housing must be just one component of a larger strategy to provide affordable housing options in every neighborhood at a variety of price points.