Inclusionary housing programs are local policies that tap the economic gains from rising real estate values to create affordable housing for lower income families.  An inclusionary housing program might require developers to sell or rent 10 to 30 percent of new residential units to lower-income residents.

Many, but not all, programs partially offset the cost of providing affordable units by offering developers one or more incentives such as tax abatements, parking reductions, or the right to build at higher densities. Most programs recognize that it’s not always feasible to include affordable on-site units within market-rate projects. In some cases, developers can  choose among alternatives, such as payment of an in-lieu fee or provision of affordable off-site units in another project.

Inclusionary housing policies were first developed to specifically counteract a history of ‘exclusionary zoning’ policies that reinforced economic and racial segregation. Although not intended to completely right racial injustices embedded in our nation’s housing practices, done right inclusionary housing can meaningfully advance racial equity. 

Inclusionary Zoning

Inclusionary housing policies are sometimes referred to as “inclusionary zoning” because this type of requirement might be implemented through the zoning code; however, many programs impose similar requirements outside the zoning code.

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How Does Inclusionary Housing Work?

“Inclusionary housing” refers to a range of local policies that tap the economic gains from rising real estate values to create affordable housing opportunities for low- or moderate-income households. Continue reading

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Where does Inclusionary Housing Work?

Inclusionary housing policies have been adopted in more states and places than commonly thought. A nationwide scan identified 1,019 inclusionary housing programs in 734 local jurisdictions. Continue reading