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.

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Key Program Design Questions

Program Structure

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  • 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?

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Performance Requirement

  • 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?

Income Targeting

  • Which income groups should the affordable units serve?
  • How can inclusionary programs serve very low-income (50 percent AMI?) households?

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  • 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?

In-Lieu Fees

  • 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?

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  • Should the program offer incentives to offset some or all of the cost of providing affordable units?

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  • How long should inclusionary units be required to remain affordable to lower-income residents?
  • Can inclusionary ownership units balance affordability and asset building opportunities?

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Resources

Inclusionary Housing Program Design Worksheet

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