If yo put it to the builder then he is going to add it to his purchase price. If the purchase price which includes MR is not in line with the market and his profit motive then he is going to walk and the project does not move forward.
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However, this argument is like saying higher interest rates will make housing less affordable. I couldn’t disagree more. There is a certain price/payment threshold beyond which buyers cannot afford to pay. If that threshold is already reached (like now), then PRICES will have to correct if rates go up, it should not mean higher monthly payments.
Developers need to work backward, not forward, when considering new developments.
Instead of saying “cost of land” + development costs + profits = retail price, they need to say “market price” – [cost to develop (including all infrastructure fees/costs) + required profits] = what I will pay for this land.
Buyers determine price, not sellers. Developers determine what they will pay for land, and it is their responsibility not to overpay.
Mello-Roos allows developers to overpay for the land and shift this burden onto the buyers. Ultimately, it is the land sellers who are making all the money, although the developers benefit indirectly because they can more easily acquire land and not have to concern themselves with these development costs…and they are DEVELOPMENT costs.
