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That’s the question developers and economists have been wrestling with as an inclusionary housing bill hurtles through City Council.Headed by Councilwoman Maria Quiñones-Sánchez, the bill would require developers to offer 10 percent of their units at substantially reduced prices to renters and buyers earning salaries below ,000, Philadelphia’s median household income.“The last thing you want to do is discourage development,” says Jenny Schuetz, an urban economist at the Brookings Institute, a Washington think tank.For all the risks, inclusionary housing programs haven’t proved all that effective.But because house prices are relatively low in Philadelphia, even a modest cost increase can cut into profits.Banks will refuse to lend money to iffy developments.

Sanchez says she sees inclusionary housing as a way to get developers, who have benefited enormously from the 10-year property tax abatement, to give back.

Beth Mc Connell, a housing advocate who serves as policy director for the Philadelphia Association of Community Development Corps., estimates that under the proposed law, Philadelphia could produce about 200 units a year.

The Paseo Verde apartments at Ninth and Berks is a model for developing affordable housing.

Inga Saffron, The Inquirer's architecture critic, writes about architecture, design and planning issues.

She was awarded the 2014 Pulitzer Prize in Criticism. As their housing costs have skyrocketed, pricing out the working poor and making it difficult for even middle-income people to find affordable housing, those cities have adopted laws requiring new developments to include subsidized units for low-wage workers.

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