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Inclusionary Zoning: for community/ neighborhood groups

Learn about inclusionary zoning, a local initiative that requires a portion of housing units in new developments to be reserved for affordable housing. Explore the key policy considerations, implementation strategies, and benefits of this approach.

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Inclusionary Zoning: for community/ neighborhood groups

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  1. Inclusionary Zoning:for community/ neighborhood groups Smart Growth / Smart Energy Toolkit

  2. Definition Inclusionary zoning - a local initiative that requires a portion of housing units in a new real estate development to be reserved for affordable housing

  3. The Problem • Home prices are rapidly rising; • Affordable housing needs are not filled; • Only 39 out of 351 Massachusetts municipalities met state’s 10% affordable housing requirement; (as of 2005) How can zoning best work with local real estate markets to advance the affordable housing goals of a community?

  4. Key Policy Considerations • Income level that affordable housing serves; • Mandatory or voluntary zoning provisions; • Amount of affordable housing provided; • Alternatives to on-site development; • Incentives offered to developers.

  5. Policy Considerations Income Level • Who qualifies for affordable housing? • Low income household defined as a percentage of area median income (AMI); • HUD Income Limits for Massachusetts. • What is an affordable unit? • Rent  30% gross income; • Mortgage payment  30% gross income.

  6. Policy Considerations Mandatory v. Voluntary • Mandatory inclusionary zoning – affordable housing units required as part of every new or rehabilitated residential development; • Voluntary inclusionary zoning – affordable housing not required in by-right development; incentive programs encourage affordable housing development. Mandatory inclusionary zoning is the most effective tool for increasing affordable housing stock in a community.

  7. Policy Considerations Amount of Housing Provided • Market demand for affordable housing; • Unit cost of affordable housing; • Number of new units that trigger affordable housing requirements. What percent of new housing units should be affordable?

  8. Policy Considerations Incentives • Types of Incentives • Density bonuses; • Expedited Permitting; • Increased Design Flexibility; • Tax Breaks. • Reduced financial burden and risk to developers; • Protection against takings challenges. What combination of incentives will spur the most affordable housing development? Amherst, MA

  9. Policy Considerations Development Alternatives • Types of Development Alternatives • Fee-in-lieu payments; • Off-site development; • Other waivers or hardship provisions; • Reduce financial burden and risk to developers. • Do development alternatives significantly reduce the amount of affordable housing developed?

  10. Keys for Success • Zoning compatible with local real estate market; • Supportive neighborhoods; • Supportive development community; • Strong regulatory authority; • Long-term planning. Provincetown, MA

  11. Benefits of Inclusionary Zoning • Expands housing opportunities • Increases economic, demographic, and cultural diversity • Prevents sprawl • Improves transparency in development process • Distributes affordable housing equitably • Improves economic competitiveness of Massachusetts

  12. Implementation • Integrates affordable units into development through matching building materials and design styles Boston, MA

  13. Implementation • Provides affordable units with equal access to public amenities Belmont, MA

  14. Implementation Scituate, MA • Situates affordable units near public transit

  15. Implementation • Construct affordable units on a schedule that coincides with market rate construction

  16. Case Studies • Barnstable • Brookline • Cambridge • Marlborough • Newton • Northampton Over 100 communities in Massachusetts have passed inclusionary zoning provisions Brookline, MA

  17. Additional Resources • Taking the Initiative: Affordable Housing Strategies Guidebook (3/2003), Guidebook for Local Housing Partnerships (9/2004), and MHP’s Housing Needs Workbook (6/2003), three useful publications for housing partnerships www.mhp.net/community_initiatives/municipalities/housing_partnerships.php • Inclusionary Zoning: Lessons Learned in Massachusetts, Inclusionary Zoning: Guidelines for cities and towns, and Zoning for Housing Affordability, three publications for affordable housing www.mhp.net/vision/zoning.php • The Impact of Inclusionary Zoning on Development www.bpichicago.org/rah/pubs/impact_iz_development.pdf

  18. Additional Resources • Mass Dept. of Housing/Com. Dev. www.mass.gov/dhcd/ • Mass Housing Partnership www.mhp.net/ • Town of Barnstable ADU Program Paulette Theresa-McAuliffe, 508-862-4683 • Portland, Oregon ADU Program Mark Bello, mbello@ci.portland.or.us • Santa Cruz, California ADU Program www.ci.santa-cruz.ca.us/pl/hcd/ADU/adu.html

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