Enterprise Point of Contact:
Jeanie Shattuck
Senior Policy Analyst
Last Updated: April 28, 2012
The implementation of inclusionary zoning varies widely from location to location. Some programs are mandatory, while others provide explicit incentives to any developer that chooses to include affordable housing units. Examples of incentives offered include density bonuses, expedited permitting and zoning changes requested by the developer. Many inclusionary zoning policies require developers to integrate affordable units on the same site, with the same specifications as market-rate units. Other municipalities permit off-site placement or accept payments to affordable housing trust funds in lieu of building units.
Inclusionary zoning is an effective method of encouraging the development of affordable housing. Some initiatives, such as the Montgomery County (Md.) Moderately Priced Dwelling Unit policy, have been in existence for decades, and have created tens of thousands of affordable units. For high-cost areas in particular, inclusionary zoning can be an essential tool to ensure that diverse housing options are available to individuals and families across a range of incomes.
Senior Policy Analyst
Last Updated: April 28, 2012
Issue Background: Inclusionary Housing Policies
Inclusionary zoning refers to policies that set aside a certain percentage of units of new or rehabilitated housing for low- and moderate-income households. Inclusionary housing policies are generally enacted through the local or state government and enforced through zoning laws and regulations.The implementation of inclusionary zoning varies widely from location to location. Some programs are mandatory, while others provide explicit incentives to any developer that chooses to include affordable housing units. Examples of incentives offered include density bonuses, expedited permitting and zoning changes requested by the developer. Many inclusionary zoning policies require developers to integrate affordable units on the same site, with the same specifications as market-rate units. Other municipalities permit off-site placement or accept payments to affordable housing trust funds in lieu of building units.
Inclusionary zoning is an effective method of encouraging the development of affordable housing. Some initiatives, such as the Montgomery County (Md.) Moderately Priced Dwelling Unit policy, have been in existence for decades, and have created tens of thousands of affordable units. For high-cost areas in particular, inclusionary zoning can be an essential tool to ensure that diverse housing options are available to individuals and families across a range of incomes.