Inclusionary Zoning (IZ)

Title: Inclusionary Zoning (IZ): A Solution for Affordable Housing and Mixed-Income Communities

Term: Inclusionary Zoning (IZ)

Definition: Inclusionary Zoning (IZ) refers to zoning regulations that mandate a specified portion of new housing developments to be allocated for affordable housing. This policy is aimed at promoting mixed-income communities and augmenting the supply of affordable housing units.

Description:
Inclusionary Zoning (IZ) is an urban planning policy tool that local jurisdictions use to induce or require developers to incorporate affordable housing into new residential developments. It serves as an inclusive growth strategy, wherein the benefits of development are shared more equitably across a community, ensuring people with diverse income levels can reside in the same neighborhood. The intention is to distribute affordable units throughout higher-income neighborhoods, thereby combating economic segregation and increasing socio-economic diversity.

Objectives:
• To ensure the provision of affordable housing within new residential projects
• To promote socio-economic integration and mixed-income residential communities
• To prevent spatial segregation based on socio-economic class
• To mitigate the adverse impacts of gentrification

Mechanisms:
• Mandatory requirements for developers to set aside a portion of units as affordable housing in new developments
• Provision of incentives such as grants, tax abatements, or density bonuses to encourage developers to participate
• Application of set-asides or affordability requirements in rezoning processes
• Direct involvement of government or non-profit organizations in housing development

Benefits:
• Increases the availability of affordable housing units
• Reduces income segregation by fostering mixed-income communities
• Supports a diversified and inclusive community
• Prevents displacement of existing lower-income residents

Challenges:
• The effectiveness of IZ can be impeded by weak real estate markets
• There might be opposition from real estate developers to the mandatory set-aside
• It requires careful monitoring and enforcement to ensure compliance
• It may not reach the poorest households without additional rental or purchase subsidies

Examples:
1. Montgomery County in Maryland, USA, has one of the oldest and most successful IZ programs, called the Moderately Priced Dwelling Unit (MPDU) program.
2. San Francisco, USA, applies a city-wide IZ policy requiring new developments to dedicate a certain percentage of units as affordable.
3. Vancouver, Canada, utilizes the inclusionary zoning mechanism to secure social housing in major developments.

Further Reading:
1. “Inclusionary Zoning and Mixed-Income Communities: Achieving the Goals?”: https://www.huduser.gov/portal/periodicals/cityscpe/vol18num1/ch5.pdf
2. "Inclusionary Zoning: Creating Enduring Affordability in Vibrant Communities": https://www.lincolninst.edu/publications/articles/inclusionary-zoning-0
3. "Affordable Housing, Always: Ensuring the Longevity and Quality of the Municipal Investment in Affordable Housing": https://www.huduser.gov/