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investors to coordinate bigger projects with greater residential densities for similar rates of return. Note that <br />over the long term, height allowances and incentives should be examined to determine how the public benefits <br />may be more feasible under improved market conditions. <br />■ Reductions in impact fees will likely only be attractive to developers committed to providing long-term <br />affordable units. When compared to the financial impacts of including permanent affordable housing in a <br />project, the incentives from reduced (or waived) impact fees are not substantial enough to make them <br />attractive to for -profit developers on their own. Because of this, impact fee waivers are probably only useful <br />for projects that would have included affordable housing due to other incentive programs, and even in these <br />situations the impacts of waivers will be small. While these incentives should be maintained, they will likely <br />only provide benefits to affordable housing developers (private, public, or non-profit organizations). <br />■ Overall, short-term actions should focus on housing feasibility with a Tong -term focus on incentivizing <br />affordable housing. Since available incentives will not be enough to make up for the identified gaps in <br />project feasibility, there are few options available to boost local development yields in the short term. <br />Because of this, the existing incentive programs examined in this assessment should be maintained at their <br />current levels to promote the production of housing as market conditions improve. As these market conditions <br />change, though, the City should re-examine these incentives, especially the MFTE program and the in -lieu <br />payment option for height increases, to ensure that these programs can be realigned to promote affordable <br />housing as a public benefit. <br />all• City of Everett 1 MFTE Financial Analysis <br />