I was recently looking at doing a 50 unit project in Chelsea. I ran into two major problems. First, even though the project would have abutted a new Silver Line station that powers that be will not allow anything to be built with less than a 1.0 parking ratio. Second, in their great foresight, the city council saw fit to adopt an affordable housing requirement. For a fifty unit deal, one must provide 8 units of affordable housing. Sales for such units incur net losses of $300k + per unit. So it makes sense to opt for the $200k per unit buyout. But since that adds $1.6mm to the project cost the deal was no longer viable. Given the cost of construction a marginal location like Chelsea was always going to be done on thin margins. This pushed the calculus right over the line.