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Inclusionary Zoning

Inclusionary Zoning. Solutions for More Workforce Housing. Large Lot Single Family Zoning. The 500 lb. Gorilla. Inefficient use of Land. Promotes Excessive Resource Consumption. Promotes Sprawl, not Smart Growth. Promotes Traffic Congestion. Promotes Lower Air Quality.

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Inclusionary Zoning

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  1. Inclusionary Zoning Solutions for More Workforce Housing

  2. Large Lot Single Family Zoning The 500 lb. Gorilla Inefficient use of Land Promotes Excessive Resource Consumption Promotes Sprawl, not Smart Growth Promotes Traffic Congestion Promotes Lower Air Quality Promotes increasingly Higher Housing Costs!

  3. Actual Sales Prices

  4. Absolute $ Change

  5. Percentage Change

  6. Median Household Incomes

  7. What’s “Affordable?” For Working Families… For Working Households… Health Care Workers Service and Retail Workers Government Workers For Younger Singles… For Empty Nesters… For Seniors…

  8. Local Government’s Role • It: Designs the rules…”the process” Adopts/Administers the rules Determines the time frames Limits Inventory and Availability Controls Infrastructure Capacity Establishes/collects Fees and Exactions Influences the builder’s profit “break point”

  9. It’s Not Rocket Science To ensure more Workforce Housing, Government should Revise Zoning and related rules to: Make more Opportunity Make it Easier Make it Faster Make it Cheaper Make it Profitable! REQUIRE IT!

  10. Zoning Techniques Targets a specific consumer segment • Inclusionary Zoning Utilizes a formula – (usually between 10% and 15% of project units) Often includes a project size threshold (as low as 10 DU/pjt.) Must include developer cost offsets Density Bonus (15% - 35%) Design relief, fee relief, fast track, etc. “Fee-in-Lieu-of” DU production

  11. Zoning Techniques State mandates/legislation • Inclusionary Zoning (that works) General Plan Housing Elements Specific Plan elements State Density Bonus law (Gov Code 65915) LAFCO “fair-share” DU production targets 225,000 DU/yr 107 Cities and Towns/35,000 units California Redevelopment Areas Affordable Housing in Non Residential pjts.

  12. Zoning Techniques Applies jurisdiction wide • Inclusionary Zoning (alternatives) Applies only in targeted areas Applies only to Housing projects Applies to All new development Applies to mixed-use projects Applies to redevelopment and reuse projects Applies to infill development Applies to non-conforming lots and structures

  13. Zoning Techniques • Inclusionary Zoning Best results where Mandatory Must be Profitable to build Best if all jurisdictions participate Best when tailored to local markets Builders need level playing field

  14. Zoning Techniques • Inclusionary Zoning (implementation alternatives) Applied through existing “by right” zones Applied through “overlay” zones Applied through “floating” zones Applied as a new “special” zone Treated as Conditional Use Special Design and Review

  15. Zoning Techniques (Alternatives) • Up zoning More dwelling units per acre (by right) Smaller lots required (less costly) More variety in housing types (by right) Establish/Increase multi-family options Add Density Bonuses for “affordability” offsets

  16. “Cottage” Housing

  17. Zoning Techniques • Relief from existing rules (that create undue limitations) Non-Conforming Lots Non-Conforming Structures Accessory Dwelling Units Live-Work options (in all zones) Height/Bulk/Yard/Parking requirements Adaptive reuse/Building Code requirements Building “recycling,” Home sharing, Congregate Housing, Minimum Unit Size

  18. Inclusionary Housing -Administration and other Issues • Local Housing Authority/Agency Increases Bureaucracy Adds own Cost of Administration • Local Housing Trust Fund Issues of Who/How actual units will be produced

  19. Inclusionary Housing -Administration and other Issues • Avoiding Declining Inventories over Time Affordable Units “in Perpetuity” v. Term Public Housing Agency “set aside” Public Housing Agency “first refusal” Limited Equity Growth in Ownership Units (Split with Government) Low & Very Low Income programs (Public Funds, vouchers, assistance, etc.)

  20. Inclusionary Zoning –for Affordable Housing Requires: Clearly Defined Problem Well Designed Strategy A “Win – Win” Solution Education of People and Organizations Strong Coalition of Support Groups Political Clout, Activism

  21. So, let’s talk about it… Together

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