Financial Feasibility Analysis
STRATEGIES
CREATE SEPARATE THRESHOLDS FOR DOWNTOWN
¢ City priority (from previous plan) is to increase diversity Downtown since
it already has higher share of affordability than other parts of Nashua
¢ Cost to develop housing is higher in Downtown, particularly due to the
need for structured (podium) parking
¢ Th city should consider a lower inclusionary requirement for Downtown
into the near future to continue to promote development while balancing
price diversity citywide
¢ Recommend a lower % requirement Downtown
USE BONUS DENSITY TO MITIGATE IMPACTS ON FINANCIAL FEASIBILITY
¢ The analysis shows that the financial impacts of an inclusionary zoning
policy can be mitigated through a bonus density program
¢ Effectively, the city would offer additional units to the developer in
exchange for the inclusionary unit requirement
¢ The analysis revealed the following ratios create a financially neutral
impact
* 1:1 bonus density ratio outside Downtown
* 2.5:1 bonus density ratio in Downtown
¢ This would only work if current practices of allowing maximum density
without inclusionary units are halted
ASSOCIATES INC
