While the city's preference is for units created through IDP to remain on-site, in some cases developers are permitted to fulfill their IDP obligations by either making a cash-in-lieu payment into the city' Inclusionary Development Fund, or developing the affordable units near the planned market-rate development. These allowances would generally be given if the cash-in-lieu payment or off-site option would yield a significantly higher number of affordable units, city officials state.

The executive order increases the cash in lieu payments with the exception of Zone C. The new contribution limits increases from $200,000 per unit to $300,000 in Zone B and from $200,000 to $380,000 in Zone A.

In addition, in Zones A and B, developers seeking to build their units off-site will be required to increase the number of affordable units from 15% of the total to 18% of the total units in their development.

Ann Sobolewski, a partner with the Boston-based law firm Posternak Blankstein & Lund LLP, praised the stricter affordable housing regulations, particularly for new projects in the downtown/waterfront district. Sobolewski, who practices in the environmental, land use, real estate area for the law firm, says, "I think the modifications he proposed are a great incentive to actually get some (affordable) units constructed. By changing the amount of money people have to pay in to avoid constructing units and by increasing the number of units they would have to pay in for, I think he is making it more likely that affordable units will be constructed in parts of the city that are currently not having them constructed."

She specifically cited the downtown and waterfront areas (Zone A) where if a developer choses to build affordable units at the development, the standard 15% affordable percentage applies. However, if you chose to opt out, the fee would be based on an 18% rate and would now cost $380,000 instead of $200,000.

Sobolewski adds that she believes the higher fees and affordable housing percentages for units built off site "could very well be a driver to get more (affordable) units in the downtown area and waterfront."

The tighter regulations and higher fees should not be a major impediment to multifamily construction in Boston, she believes. "Development continues to roll along and Boston remains a city that is ripe for new kinds of industry and if you look at the fact that the Millennial generation wants to live where it works, having a mix of office and housing units will continue to happen in the city," Sobolewski says.

The IDP Fund, since its inception in 2000, has created 1,496 new affordable housing units under the on-site and off-site components, with another 551 affordable units currently under construction. In addition, more than $100 million has been raised for affordable housing; $70 million from the fund has been disbursed to date. These funds have helped create 1,597 new units of affordable housing, according to figures released by the city.