Inclusionary Housing. While no one housing policy alone will meet a communitys affordable housing needs, inclusionary housing can be one of several important sources of new affordable housing opportunities. Implementation details can have a significant impact on whether the program successfully serves Black, Brown, and other marginalized people of color. The Home Purchase Assistance Program (HPAP) gives up to $202,000 in down payment and closing assistance to eligible first-time homebuyers. Affordable housing dwelling unit ordinances. In exchange, the developer can be rewarded with incentives in an attempt to offset costs incurred by accepting below-market rents. Inclusionary housing policies were first developed to specifically counteract a history of exclusionary zoning policies that reinforced economic and racial segregation. Request Permissions, Published By: US Department of Housing and Urban Development, US Department of Housing and Urban Development. Inclusionary Zoning (IZ) Affordable Housing Program | dhcd Citation 2012). Evaluating MTW Flexibility for Smaller PHAs: Baseline Report Given the mixed results achieved by local ADU ordinances under both existing laws, legislation was introduced during the 2020 General Assembly Session to create an additional inclusionary zoning enabling statute (15.2-2305.1). So how does it work? Inclusionary Zoning and Mixed-Income Communities | HUD USER You cannot be enrolled in a full-time college or university program. This gives more weight to very low income units. This new statute, which localities are not required to implement, replaces the 17% set-aside requirement maximum and associated density bonus with a minimum threshold that localities (outside the Big Six of 15.2-2304) must include in their inclusionary zoning ordinances. ADUs: The NExt (Little) Thing in Affordable Housing These include Alaska, Delaware, Hawaii, Maine, Montana, New Jersey, New York, Ohio, Pennsylvania and West Virginia.Cities in these states have home rule authority, which grants them the power to pass laws and govern themselves. on Social Media, Impact Statement: Prefiled and ordered printed; offered 01/12/22 22101004D, Continued to 2023 in Counties, Cities and Towns by voice vote, Referred to Committee on Counties, Cities and Towns, Prefiled and ordered printed; offered 01/12/22 22101004D. Tips for implementing a program so it runs smoothly. Planning, Subdivision of Land and Zoning Article 7. Households that make 50%, 60%, or 80% of the Median Family Income (MFI) may be eligible for IZunits and households that make 30%, 100% or 120% of the MFI may still be eligible for other non-IZ affordable units. Developers who were interviewed stressed the importance of being able to plan, estimate costs, and accurately calculate their profit. They were intended to help combat exclusionary zoning, a method of racial discrimination in which local land use policies intentionally prohibit developments that would allow for economic (and therefore racial) integration. Inclusionary zoning is popular among policymakers for two reasons. This provision was intended to provide developers an additional tool to incorporate below market-rate units into their developments. Inclusionary zoning is most effective as a part of a grander inclusionary housing plan that promotes an array of tools to offer a wide range of housing choices for families whose incomes are a barrier to finding a secure market rate home in their community. Cityscape is published three times a year by the Office of Policy Development and Research (PD&R;) of the U.S. Department of Housing Urban Development. But while jurisdictions under Code 15.2-2304 are free to determine the parameters of both the density bonus and the number of affordable units required, Code 15.2-2305 caps both of these provisions and requires localities to maintain a ratio between the size of the density bonus (up to 30% increase) and number of affordable units (up to 17%). It also addresses inclusionary requirements for condominium developments. PDF A Practitioner's Guide to Inclusionary Housing - Housing Virginia Communities also need to be able to track program data. State of Housing #12: Virginias programs to address housing insecurity and instability are powerful tools, but more is still needed. Renters of an IZ home must prove residency, household size, and income each year. At a time when declining household incomes, increased demand for rental units, and curtailed lending intensify the need for affordable housing, policymakers are seeking more information about the impact of local inclusionary zoning (IZ) on the affordable housing supply, and want to learn more about inclusionary zoning programs from those who operate them. Inclusionary strategies could be as simple as expanding areas where apartments, townhomes, and other less-expensive construction types are allowedespecially by-right and without the need for additional layers of approval, such as rezoning or special use permits (SUPs). Homeownership CBOs | dhcd Specific affordability requirements like this are generally written into a municipalitys land use code. A Guide for Practitioners, Housing And Health: The Role Of Inclusionary Zoning, Recorded ADU (affordable dwelling unit) declaration. Since then, more than 1,000 inclusionary housing programs have been adopted by over 700 jurisdictions across 31 Amendments have been made to price-control periods, affordability levels, unit requirements, and the percentage of affordable units required. When inclusionary zoning requires private developers to subsidize below-market-rate units, however, it may act as a tax on housing, leading to reduced supply and higher prices than cities would experience without the policy. Counties, Cities and Towns Subtitle II. In the past, pricing has been based partly on construction costs and partly on residents ability to pay. An interactive map of all known inclusionary zoning programs across the United States, along with relevant state enabling policies. New York City Department of City Planning Advocates have long promoted inclusionary zoning (IZ) as a viable, market-based strategy for increasing affordable housing and creating mixed-income communities. Since these changes took shape right as the COVID-19 pandemic shifted policymakers priorities overnight, its unclear whether any localities have adoptedor are currently draftingnew inclusionary zoning ordinances using 15.2-2305.1. The countys zoning ordinance addresses outdoor lighting standards in its section on performance standards (5109). Mandatory inclusionary housing programs require developers to include affordable units in their building plans in order to obtain development rights. Owners of an IZ home who wish to sell/refinance must submit a. A handful of jurisdictions (the Counties of Albemarle and Loudoun, and the Cities of Alexandria and Fairfax, as well as Arlington County), are authorized to adopt inclusionary zoning laws under Code 15.2-2304. First, it appears "free." It produces affordable housing units without an outlay of tax dollars. The number of new affordable units built vary widely from year to year, depending on housing market conditions and development opportunities. Although the affordable housing inventories in both counties grew over time, the number of units produced annually in Montgomery County has ranged from 77 to 1,200 units and from 18 to 376 units in Fairfax County. These policies can be either voluntary or mandatory. understand if the program is working as desired, including addressing racial inequities, and make changes over time. This post is part of a series highlighting findings from this new report. For example, if a multifamily developer is building a complex with 100 units, 10 of those units could be reserved to be affordable to households making less than 80% of AMI. To address these issues, in 1989 the General Assembly passed a revision to the enabling statute that explicitly allowed for inclusionary zoning in six localities: the counties of Albemarle, Arlington, Fairfax, and Loudoun, and the cities of Alexandria and Fairfax. The state of Minnesota, on the other hand, prohibits cities from enacting rent control policies but allows cities to establish sales prices or rents for affordable housing for low- and moderate-income households. Introduction. The county's zoning code addresses limitations on the keeping of animals (4102.7.J). The DHCD Housing Resource Center is among the resources that help residents find affordable homes in the District. PDF Inclusionary zoning. What does the research tell us about the So how does it work? 15.2-2305.1. Affordable housing dwelling unit ordinances - Virginia Law Is inclusionary zoning creating less affordable housing? These laws aim to provide housing to low-income residents who would otherwise be unable to afford it. Back to Basics: Inclusionary Zoning - HousingForward Virginia The FWD #G24 (via LOCUS): The Community Investment Guarantee Pool helps social enterprises access new capital and cut costs. INCLUSIONARY ZONING IN THE U.S. AND THE FIFTH DISTRICT THE PROBLEM The share of low- and middle-income1 renters with cost burdens2 is increasing in the U.S. . (April 2018), Silver Bullet or Trojan Horse? Both IZ programs are complex, involving many government agencies and organizations with tasks and responsibilities that go beyond ensuring that a developments plan is compliant with the inclusionary zoning program. The United States is in the midst of a housing crisis there are not enough homes available for residents across the income spectrum. The housing markets in these counties are strong, despite the current slowdown in new construction. Sometimes, localities may even require some dedicated below-market rate units in new residential construction. In fact, some Montgomery County developers were of the opinion that, if passed, a proposed pricing amendment under consideration might deter building, because it would negatively affect their ability to estimate profits. To revisit our previous example, lets say an inclusionary zoning ordinance sets the density bonus threshold at 17%, the maximum allowed under Virginia code 15.2-2305. Consolidated Annual Performance and Evaluation Reports (CAPER), Inclusionary Zoning Administrative Regulations. Accessory Dwelling Units are also an important tool for increasing the supply of affordable housing.). Specific affordability requirements like this are generally written into a municipalitys land use code. A project with 35% of units set aside for low-income households would get a 57.5% density bonus, whereas a project with the same amount of very low-income units would get a whopping 95% bonus. Adopted in 2003, the codes intent is to reduce the impacts of glare, light trespass and overlighting; promote safety and security; and encourage energy conservation. Inclusionary zoning the requirement that real estate developers include below-market-rate units in new projects has grown in prevalence in cities across the country since the 1970s. A sliding scale requirement table and example calculations for a mixed dwelling unit development is also provided. Alexandria and Falls Church, Virginia, are exceptions, where density bonuses are valuable, owing to traditional zoning's restrictions on new housing construction. The Inclusionary Housing Map & Program Database is the only place where you can: Learn more about the distribution of inclusionary housing programs Identify features and trends in inclusionary housing programs Find other programs just like yours Identify states that are in favor of inclusionary housing programs Who is using it? The code provides a number of general design standards for outdoor lighting, as well as lighting standards and plan/permit requirements for certain uses: service stations, outdoor display areas for vehicle sales, and outdoor recreation and sports facilities. We have defined "inclusionary zoning" in this paper as any municipal or county ordinance that requires or allows a property owner, builder, or developer to restrict the sale or resale price or rent of a specified percentage of residential units in a development as a condition of receiving permission to construct that development. News Flash Charlottesville, VA CivicEngage What is it? Virginia tenants have legal rights. As well, municipalities must impose an affordability term of 15 to 50 years. Maximum Household Income Limits, rents and purchase prices are based on the Washington Metropolitan Statistical Area 2021 Median Family Income (MFI), previously referred to as Area Median Income (AMI), of $129,000 for a household of four, as published by the U.S. Department of Housing and Urban Development (HUD) on April 1, 2021. This button displays the currently selected search type.