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Boston developers now required to disclose investor, employee diversity

by Michael M. Mazek

A new ordinance from the Boston Planning and Development Agency announced on Oct. 9 that it will require any developer with plans to build on public land to provide a diversity and inclusion statement as part of the request for proposal (RFP) process. The BPDA hopes that the new rule, effective immediately, will encourage greater representation of women and minority groups among real estate firms, as well as reduce displacement resulting from development.

“In order to create a Boston that is equitable for all, we must call on our partners in the development and business community to join us in increasing opportunities for our residents,” said Mayor Marty Walsh in a news release announcing the rule. “These steps build on the measures we have taken to remove barriers that hinder individuals from reaching their full potential based on their background, race, or gender, while ensuring that new development on public land happens without displacement.”

Those previous measures referenced by Walsh include similar provisions enacted last year by the Boston City Council, which began requiring diversity and inclusion reports on all bids for city-funded contracts and construction projects. Under this ordinance and the new one aimed at developers, all RFPs made to the BDPA must include details on the development firm’s representation according to gender identity, race, ethnicity or other background details. The same will be required from any professional services firms or investors that will be involved in plans submitted to the city. In addition, the report should examine how any planned development could impact minority communities, positively or negatively, and how developers will work with those groups to address concerns.

“We’ve been talking about this issue for a while,” said Brian Golden, director of the BPDA in an interview with the Boston Globe. “We want to make sure this boom really does benefit people throughout the city.”

Crucially, the new rules will only apply to RFPs submitted for city-owned land parcels, not those that are state-owned or privately held. For now, according to the Globe, the rules “are being tried out” on four city-owned parcels in Dudley Square being sold, and were also part of a recently approved deal with Millennium Partners to build what would become one of Boston’s tallest buildings in Winthrop Square. Other major city-owned sites expected to be sold to developers soon include lots along the Fairmount Line in Dorchester and on Rutherford Avenue in Charlestown.

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