AN INTRODUCTION TO INCLUSIONARY ZONING
What is an Inclusionary Zoning (IZ) policy?*
- IZ policies are local rules that require or encourage for-profit housing developers to include (and pay for) some affordable housing as part of new housing projects.
- The affordable units are either built by the for-profit developer within the “market rate” development or elsewhere, or built by non-profit developers on land donated by the for-profit developer, or with the help of a cash in lieu payment by the for-profit developer.
What does an IZ policy do?
- Inclusionary policies make sure that housing for all income groups is produced when new housing is being built.
- They let for-profit developers know what their affordable housing obligations will be before they begin to plan their projects.
How do IZ policies work?
- Inclusionary policies can be in a local ordinance, part of a General or Comprehensive Plan policy, specific zoning requirements, or special permit approvals for housing projects.
- Inclusionary policies usually define:
- The income levels for which the affordable housing will be built.
- What percentage of each project will be affordable.
- How long the affordable units will remain affordable.
- Incentives for developers to comply with policy.
How does an Inclusionary Zoning policy start?
- Community groups begin by identifying what they want IZ to accomplish - what incomes to assist, whether affordable units being part of market rate projects is a priority and so on.
- Key stakeholders and allies should be consulted early on to win their support. These could include housing advocacy groups, labor unions, churches, and friendly elected officials.
- The IZ ordinance or policy is often written with help from technical experts and then is either introduced through the appropriate local law-making body (usually a City Council) or is put on the ballot to be voted on locally.
- Advocates should expect opposition from for-profit housing developers and their elected allies, as well as some homeowners who may not want affordable housing residents in their neighborhoods.
Where are Inclusionary Zoning policies most effective?
- IZ policies can be effective in any growing community.
- In communities that have a strong housing market, developable land, and a public infrastructure to support large, new developments.
- When a local housing market starts to improve, but BEFORE it gets really strong, so it is in place during a boom.
How do IZ policies provide community benefits?
- Inclusionary housing polices create affordable housing and diverse, integrated communities.
- They do not directly address the other priority benefits.
How does IZ further equity principles?
- Development without displacement. Investment without disenfranchisement. Inclusionary policies allow development to occur while creating housing for low-income people.
- City & public assets are the people’s assets. Residents have a right to the City. Inclusionary policies help residents of all economic levels benefits from the use of public resources to support development.
- Equitable distribution of burdens, benefits and decision-making power. Inclusionary policies help create a more equitable distribution of burdens and benefits. They can indirectly impact equitable decision-making as residents organize to win the policy.
- Housing is a human right. Inclusionary policies help make this fundamental belief a reality
- Long-term community vision and stewardship of community assets. Long-term affordability an important part of Inclusionary policies but the issue of who serves as the community’s stewards is not addressed by these policies.
What are the main Criticisms/Challenges of Inclusionary Zoning?
- Challenges for inclusionary policy efforts include deciding on the policy focus, building a strong coalition and being prepared to respond to opposition arguments.
- Private developers often claim it is not their role to address a social concern and that inclusionary requirements make a project financially infeasible.
- Local officials and policy makers worry that IZ will slow down development and “scare away” developers, even though this has not been the case.
- Some homeowners or local residents with misconceptions about “poor people” may oppose IZ because they do not want lower-income housing in their area. This opposition can be mitigated through community education and constituency building activities.
Where are IZ policies being used?
- Inclusionary polices began as a tool to promote economic integration in the suburbs. They have been used in every imaginable kind of community in every part of the country to promote housing for all.
- Inclusionary policies are the norm in many parts of the country. They can be found in many local jurisdictions, large and small including: San Francisco, Denver, Montgomery, MD, Santa Fe NM, Chapel Hill, NC, Burlington, VT, New York, Chicago, and Baltimore, MD.
- Please click here to view a map and table of all of the inclusionary zoning policies in the US.
What are some of the key resources for IZ policies?
IZ Training Binder
Introduction
Workshop Materials
Additional Resources
What organizations are working on IZ policies?
- Business and Professional People for the Public Interest (BPI), http://www.bpichicago.org
- National Low Income Housing Coalition (NLIHC) www.inhousing.org
- Policy Link www.policylink.org
Who are some of the people working on IZ policies?
- Rob Wiener California Coalition for Rural Housing
- David Rusk, author & consultant
- Nicholas Brunick, Business and. Professional People for the Public Interest
- Nico Calavita, San Diego State University
- Alan Mallach, National Housing Institute
- Brian Augusta, California Rural Legal Assistance Foundation
- Dennis Keating, Cleveland State University
- Bibi Hidalgo, Citizen’s Planning and Housing Association, Baltimore
- Stuart Katzenberg, ACORN Maryland
What are some of the useful resource materials on Inclusionary Zoning policies?
- PolicyLink LISTSERVE http://www.policylink.org/discussions/InclusionaryHousing.html
- National Low Income Housing Coalition website http://www.nlihc.org/template/index.cfm
- The California Inclusionary Housing Policy Database www.calruralhousing.org/housing-toolbox/inclusionary-housing-policy-search
- Basolo, Victoria & Nico Calavita. 2004. "Policy Claim with Weak Evidence: A Critique of the Reason Foundation Study on Inclusionary Housing Policy in the San Francisco Bay Area." Available at < http://www.nonprofithousing.org/index.atomic
- Calavita, Nico, Kenneth Grimes Alan Mallach. 1997. "Inclusionary Housing in California and New Jersey: A Comparative Analysis," Housing Policy Debate, Vol. 8 <http://www.google.com/search?q=Nico+calavita&hl=en&start=30&sa=N>
- Calavita, Nico, editor. 2004. “Inclusionary Zoning: The California Experience,” NHC Affordable Housing Policy Review, Vol.3, # 1, February; National Housing Conference.
- Mallach, Alan. 1984. Inclusionary Housing Programs: Policies and Practices. New Brunswick, NJ: Center for Urban Policy Research, Rutgers University.
- Porter, Douglas. 2004. Inclusionary Zoning for Affordable Housing; Urban Land Institute, Washington D.C.
* In many parts of the country, the policy mechanisms that make up this tool are referred to as “Inclusionary Housing” or “Inclusionary Housing Policies.” We are using the Terms “Inclusionary Zoning”, “Inclusionary Housing” or “Inclusionary Housing Policies” interchangeably here.