Programs must plan ahead to adequately cover administrative costs in both high-growth and low-growth periods.
PolicyLink documented the many sources that inclusionary housing programs rely on to fund ongoing administration.*
The most common sources were local government general funds and federal housing block grant funds. However, many communities use a portion of the revenue that they receive from in lieu fees to pay for program administration.
A number of communities have developed special administrative fees, which grow over time as administrative demands grow. A few charge tenants or homebuyers application fees, and a growing number charge significant fees when inclusionary homeowners resell or refinance their homes. In cases where the inclusionary program staff manages significant aspects of the resale, fees as high as 3 percent of the resale price may be appropriate.
Community land trusts typically charge homeowners a monthly ground lease fee to help defray administration costs, and a small number of cities including Chicago, Illinois have included similar administration fees in deed covenants. Salinas, California charges owners of inclusionary rental units an annual monitoring fee as well.