A bill introduced last week at the Philadelphia City Council would levy a 1 percent tax on construction and relax some zoning codes to fund programs aimed at providing more affordable housing in the city.

The bills are a series of compromises arising from battles between progressive city council members and real estate and construction lobbying groups. Councilwoman Maria Quiñones-Sanchez had been pushing for a bill that would mandate the inclusion of affordable housing units in any new development, but her proposal was almost unanimously opposed by the powerful building and real estate lobbies, according to The Philadelphia Inquirer.

The compromise, which replaced a mandate with incentives, but which would also allow developers to pay a penalty fee in lieu of including affordable housing in their developments, has the backing of some of the previously opposed lobbying groups, like the Building Industry Association.

Current estimates are that the tax will raise $25 million a year. There is no word yet on when these proposals will be put to a vote.

– Mike VanHelder