The Newport City Council, in a wide ranging set of new city laws, has enacted new incentives for developers to build affordable housing in order to relieve an extreme housing crisis.
The council adopted a series of bold moves to make affordable housing “pencil out” for developers to build not just standard housing, but housing for low to lower middle income households.
Among the incentives are steep reductions System Development Charges (SDC’s) that pay forward the cost of expanded sewer, water and stormwater systems, streets, schools and parks. Other incentives include deferral, reduction or outright elimination of property taxes on high density multi-family projects.
But while reducing taxes and fees on affordable housing projects, the new “tool kit” for the city is the enactment of a Construction Excise Tax…applied to new ‘regular’ construction in addition to regular SDC’s and other costs associated with building new homes and commercial buildings.
It’s all about making housing cheaper for those in need while raising the cost slightly to those with higher incomes.