Inclusionary Zoning

Definition

Inclusionary zoning (IZ) is a set of local policies and regulations that mandate or incentivize real estate developers to include a certain number of affordable housing units within new residential projects. The broader intention is to promote socio-economic diversity while increasing the availability of affordable housing, preventing the concentration of low-income households solely in specific neighborhoods.

Examples

1. New York City’s Mandatory Inclusionary Housing (MIH) Program: This requires that between 20% to 30% of residential floor area be allocated for affordable housing, with variances depending on the specific affordability requirements.

2. California’s Density Bonus Law: Developers are provided with increased density allowances if they include a percentage of affordable units in their housing projects.

3. Boston’s Inclusionary Development Policy (IDP): The policy requires developers to designate 13% of the total units as affordable housing for projects with 10 or more residential units.

Frequently Asked Questions

1. What is the primary goal of inclusionary zoning?

The primary goal is to promote the development of affordable housing and ensure socio-economic diversity within neighborhoods.

2. How does inclusionary zoning affect developers?

Inclusionary zoning can impose specific constraints on developers regarding unit pricing and the allocation of affordable housing. However, in exchange, they may receive benefits such as density bonuses, expedited permitting, or financial incentives.

3. Are all inclusionary zoning laws mandatory?

No, some inclusionary zoning policies are voluntary or incentive-based, while others are mandatory.

4. How does inclusionary zoning impact housing affordability?

Inclusionary zoning helps increase the supply of affordable housing, making it easier for lower-income residents to find adequate housing options within desirable neighborhoods.

5. What are density bonuses?

Density bonuses are incentives offered to developers, allowing them to build more units than usually permitted by zoning laws in exchange for providing affordable housing units.

6. Do inclusionary zoning policies vary by city or state?

Yes, the specifics of inclusionary zoning regulations can vary widely depending on local government objectives and housing market conditions.

Related Terms

1. Affordable Housing: Housing that is accessible to individuals with lower incomes, usually defined as costing no more than 30% of the household’s income.

2. Zoning: Laws and regulations that dictate how real property can and cannot be used in certain geographic areas to ensure organized urban development and manageable growth.

3. Density Bonuses: Regulatory allowances permitting developers to increase the maximum allowable residential units or floor space in exchange for including affordable housing.

4. Urban Planning: The technical and political process concerned with the development and design of land use and the built environment, including infrastructure.

5. Building Permit: Official approvals from local governmental bodies that are necessary before construction or significant alterations to a building can formally begin.

Online Resources

1. National Housing Conference
2. Grounded Solutions Network
3. Urban Institute
4. Smart Growth America
5. Enterprise Community Partners

References

1. “The Inclusionary Housing Debate,” by Alexander von Hoffman, available at the Joint Center for Housing Studies of Harvard University.

2. Schwartz, Heather L., et al. “Inclusionary Zoning and Local Effects: An Analysis of Present Programs and State Contexts,” published in the Journal of Policy Analysis and Management.

Suggested Books for Further Studies

1. “Inclusionary Zoning: A Policy, a Strategy, and the Search for Affordable Housing” by Emily Talen
2. “Housing Markets and Planning Policy” by Colin Jones, Craig Watkins
3. “The Affordable Housing Reader” edited by J. Rosie Tighe and Elizabeth J. Mueller

Real Estate Basics: Inclusionary Zoning Fundamentals Quiz