BOSTON — Boston Mayor Michelle Wu on Tuesday proposed changes to the city's inclusionary zoning and commercial linkage rules that would give developers more time to make affordable housing payments and ease some requirements. The city said high interest rates, rising construction costs and shifting demand for commercial space have slowed the production of new housing and commercial space in Boston.

Under the inclusionary zoning proposal, developers would pay their affordable housing obligations in seven installments rather than two. The fee condominium developers can pay instead of providing income-restricted units would drop from 75% to 50% of the difference between market-rate and income-restricted unit values. For two years, the rules would apply only to projects of 10 or more units, up from seven. The city also proposes changing a rule on how far away developers may build required affordable units, which it said would allow them in a wider area.

For commercial projects, the city would freeze linkage fees at current levels through 2027 and let developers pay the affordable housing portion in seven installments instead of two. Payments to the Neighborhood Jobs Trust, which supports job training, would stay at two installments.

"In the face of continued economic headwinds exacerbated by federal actions, we are making targeted adjustments to help more projects move forward and create more affordability," Wu said in a statement.

According to the city, more than 5,000 income-restricted homes had been completed or were under construction through its Inclusionary Development Policy as of June, and developers have paid more than $200 million into the policy's fund.

Kathy Brown, executive director of the Boston Tenant Coalition, said the changes were preferable to cutting the inclusionary requirement from 20% to 13% of units built. Evan Lank, a principal at Juice Capital, said projects of seven to nine units "have not been financially viable in this economic climate."

The BPDA board is expected to take up the proposals Nov. 12, followed by the Boston Zoning Commission. The inclusionary zoning changes would also go to the Boston City Council.

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