Malden Cuts Affordable Set-Aside for Developers
Developers of eight-plus unit projects in Malden must now set aside 10 percent of units for income-restricted housing, down from 15 percent.
Updated on Nov. 4, 2026 in Remote Work
Live Poll
Should your city require new apartment buildings to include affordable units?
Malden's City Council voted last week to reduce minimum affordable housing requirements for multifamily developments of eight or more units. The minimum income-restricted share drops from 15 percent to 10 percent of units, and the changes take effect immediately, affecting developers building in the city.
Why it matters
Officials cited a sharp downturn in building activity as the reason for the changes, after Malden first enacted inclusionary zoning in 2021. Councilor At Large Carey McDonald stated that the policy is failing to produce affordable housing under its current terms.
The ordinance covers developments of eight or more units, and the minimum income-restricted share falls from 15% to 10% of units. Malden built approximately 2,000 apartments in Malden Center over the previous decade, but the city says construction has plummeted over the past five years, and the extraction gives no exact recent unit count.
The players
Malden City Council
The elected legislative body of Malden that sets zoning rules shaping how residential developers must build and price units.
Carey McDonald
Councilor At Large in Malden who argued that the current inclusionary zoning policy is not producing affordable housing.
RKG Associates
A consulting firm hired by Malden this year to study possible changes to the inclusionary zoning policy.
The details
Under the amended ordinance, developers of projects with eight or more units must set aside a smaller share of units at restricted incomes. Apartment eligibility rises from 50 percent to 60 percent of area median income, and minimum income for ownership units rises from 80 to 100 percent. Density bonuses increase to two additional units for each required affordable unit, up from one, and fully income-restricted projects may gain one additional floor of height with special permit approval.
Timeline
2021: Malden first enacted inclusionary zoning.
Last week: The City Council voted to reduce the affordable housing requirements, effective immediately.
This year: Waltham and Chelsea also rolled back minimum affordable housing requirements.
Market Landscape
Malden joins Waltham and Chelsea in rolling back minimum affordable housing requirements this year, and Cambridge is reviewing its own inclusionary zoning ordinance. The move mirrors San Francisco's earlier reduction of its affordable mandate from 15 percent to 5 percent, a precedent for cutting set-asides to restart stalled construction.
Developers planning projects of eight or more units in Malden should recalculate their affordable set-aside and density-bonus assumptions under the new thresholds. Owners and operators of housing-dependent businesses should watch whether reduced requirements translate into new unit completions in the coming quarters. Consult qualified counsel or an accountant before adjusting project financing or compliance plans.
The takeaway
Developers should treat Malden's revised thresholds as a live planning variable and model projects against the 10 percent set-aside and 60 percent income ceiling. Operators should track whether the rollback produces new permits and unit completions over the next several quarters.
Further reading
For context on how local housing rules shape the workforce and employers in the area, see Remote Work.
Source note: This article includes information reported by Banker & Tradesman.
Live Poll
Should your city require new apartment buildings to include affordable units?
