This worksheet gives municipalities the tools to design the basic structure of an inclusionary housing program. The worksheet helps municipalities define need, outline a basic program structure, plan policy choices, describe incentives, and decide compliance alternatives. View Worksheet
No two inclusionary housing policies are exactly the same. Policymakers in each community must consider a number of distinct questions. Every policy addresses each of these questions though the specific answers differ considerably from place to place depending on local conditions.
- How should the program be structured?
- Should there be formal requirements?
- Should participation be voluntary or mandatory?
- Should requirements apply everywhere or only in targeted areas?
- Should the program require units or fees?
- Should the policy exempt projects below a certain size?
- Should rental or ownership projects be exempt?
- What share of units should be provided at affordable prices or rents?
- Do affordable units need to be identical to market-rate units?
- If not, what design standards should apply?
- Do affordable units need to be distributed throughout the market-rate project?
- Which income groups should the affordable units serve?
- How can inclusionary programs serve very low-income (50 percent AMI?) households?
- Should developers be allowed to build affordable units offsite?
- Should nonprofit partnerships be encouraged?
- Should developers be allowed to donate land instead of building affordable units?
- Should developers be allowed to access public subsidies for affordable units required under the inclusionary program?
- Should developers be allowed to pay a fee instead of producing on-site units?
- How should the fee be determined?
- How should fees be adjusted for inflation?
- Should the program offer incentives to offset some or all of the cost of providing affordable units?
- How long should inclusionary units be required to remain affordable to lower-income residents?
- Can inclusionary ownership units balance affordability and asset building opportunities?