Inclusionary zoning
Encyclopedia
Inclusionary zoning
Zoning
Zoning is a device of land use planning used by local governments in most developed countries. The word is derived from the practice of designating permitted uses of land based on mapped zones which separate one set of land uses from another...

, also known as inclusionary housing, is an American term which refers to municipal and county planning ordinances
Local ordinance
A local ordinance is a law usually found in a municipal code.-United States:In the United States, these laws are enforced locally in addition to state law and federal law.-Japan:...

 that require a given share of new construction to be affordable by people with low to moderate incomes. The term inclusionary zoning indicates that these ordinances seek to counter exclusionary zoning
Exclusionary zoning
Exclusionary zoning is a term that, in the United States, has come to be applied to local zoning measures that appear to impose unnecessary or unjustifiable costs or requirements facially or by execution excluding various groups of ‘undesirables.'...

 practices, which aim to exclude low-cost housing from a municipality through the zoning code. In practice, these policies involve placing deed
Deed
A deed is any legal instrument in writing which passes, or affirms or confirms something which passes, an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions sealed...

 restrictions on 10%-30% of new houses or apartments in order to make the cost of the housing affordable to lower-income households. The mix of "affordable housing
Affordable housing
Affordable housing is a term used to describe dwelling units whose total housing costs are deemed "affordable" to those that have a median income. Although the term is often applied to rental housing that is within the financial means of those in the lower income ranges of a geographical area, the...

" and "market-rate" housing in the same neighborhood is seen as beneficial by political activists. Inclusionary zoning is a tool for local municipalities in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 to allegedly help provide a wider range of housing options than a free market
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...

 provides on its own. Many economists consider the program as a price control on a percentage of units, which negatively impacts the supply of housing.

Most inclusionary zoning is enacted at the municipal or county level; when imposed by the state, as in Massachusetts, it has been argued that such laws usurp local control. In such cases, developers can use inclusionary zoning to avoid certain aspects of local zoning
Zoning
Zoning is a device of land use planning used by local governments in most developed countries. The word is derived from the practice of designating permitted uses of land based on mapped zones which separate one set of land uses from another...

 laws.

Historical background

During the mid- to late-20th century, new suburb
Suburb
The word suburb mostly refers to a residential area, either existing as part of a city or as a separate residential community within commuting distance of a city . Some suburbs have a degree of administrative autonomy, and most have lower population density than inner city neighborhoods...

s grew and expanded around American cities as middle class
Middle class
The middle class is any class of people in the middle of a societal hierarchy. In Weberian socio-economic terms, the middle class is the broad group of people in contemporary society who fall socio-economically between the working class and upper class....

 house buyers, supported by federal loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....

 programs such as Veterans Administration
United States Department of Veterans Affairs
The United States Department of Veterans Affairs is a government-run military veteran benefit system with Cabinet-level status. It is the United States government’s second largest department, after the United States Department of Defense...

 housing loan guarantees, left established neighborhoods and communities. These newly-populated places were generally more economically homogeneous than the cities they encircled. Many suburban communities enacted local ordinances, often in zoning codes, to preserve the character of their municipality. One of the most commonly cited exclusionary practices is the stipulation that lots must be of a certain minimum size and houses must be set back from the street a certain minimum distance. In many cases, these housing ordinances prevented affordable housing from being built, because the large plots of land required to build within the code restrictions were cost-prohibitive for modestly priced houses. Communities have remained accessible to wealthier citizens because of these ordinances, effectively shutting the low income families out of desirable communities. Such zoning ordinances have not always been enacted with conscious intent to exclude lower income households, but it has been the unintended result of such policies.

By denying lower income families access to suburban communities, many feel that exclusionary zoning has contributed to the maintenance of inner city
Inner city
The inner city is the central area of a major city or metropolis. In the United States, Canada, United Kingdom and Ireland, the term is often applied to the lower-income residential districts in the city centre and nearby areas...

 ghetto
Ghetto
A ghetto is a section of a city predominantly occupied by a group who live there, especially because of social, economic, or legal issues.The term was originally used in Venice to describe the area where Jews were compelled to live. The term now refers to an overcrowded urban area often associated...

s. Supporters of inclusionary zoning point out that low income households are more likely to become economically successful if they have middle class
Middle class
The middle class is any class of people in the middle of a societal hierarchy. In Weberian socio-economic terms, the middle class is the broad group of people in contemporary society who fall socio-economically between the working class and upper class....

 neighbors as peers and role models. When effective, inclusionary zoning reduces the concentration of poverty in slum
Slum
A slum, as defined by United Nations agency UN-HABITAT, is a run-down area of a city characterized by substandard housing and squalor and lacking in tenure security. According to the United Nations, the percentage of urban dwellers living in slums decreased from 47 percent to 37 percent in the...

 districts where social norms may not provide adequate models of success. Education is one of the largest components in the effort to lift people out of poverty; access to high-quality public schools is another key benefit of reduced segregation. Statistically, a poor child in a school where 80% of the children are poor scores 13-15% lower compared to environments where the poor child's peers are 80% middle class.

In many of the communities where inclusionary zoning has been put into practice, income requirements allow households that earn 80-120% of the median income to qualify for the "affordable" housing. This is because in many places high housing prices have prevented even median-income households from buying market-rate properties. This is especially prominent in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

, where only 16% of the population could afford the median priced home during 2005.

Differences in ordinances

Inclusionary zoning ordinances vary substantially among municipalities. These variables can include:
  • Mandatory or voluntary ordinance. While many cities require inclusionary housing, many more offer zoning bonuses, expedited permits, reduced fees, cash subsidies, or other incentives for developers who voluntarily build affordable housing.
  • Percentage of units to be dedicated as inclusionary housing. This varies quite substantially among jurisdictions, but appears to range from 10-30%.
  • Minimum size of development that the ordinance applies to. Most jurisdictions exempt smaller developments, but some require that even developments incurring only a fraction of an inclusionary housing unit pay a fee (see below).
  • Whether inclusionary housing must be built on site. Some programs allow housing to be built nearby, in cases of hardship.
  • Whether fees can be paid in lieu of building inclusionary housing. Fees-in-lieu allow a developer to "buy out" of an inclusionary housing obligation. This may seem to defeat the purpose of inclusionary zoning, but in some cases the cost of building one affordable unit on-site could purchase several affordable units off-site.
  • Income level or price defined as "affordable," and buyer qualification methods. Most ordinances seem to target inclusionary units to low- or moderate-income households which earn approximately the regional median income or somewhat below. Inclusionary housing typically does not create housing for those with very low incomes.
  • Appearance and integration of inclusionary housing units. Many jurisdictions require that inclusionary housing units be indistinguishable from market-rate units, but this can increase costs.
  • Longevity of price restrictions attached to inclusionary housing units, and allowable appreciation. Ordinances that allow the "discount" to expire essentially grant a windfall profit to the inclusionary housing buyer, preventing that subsidy from being recycled to other needy households. On the other hand, preventing price appreciation removes a key incentive for home ownership. Many programs restrict annual price appreciation (by, for instance, enrolling inclusionary housing in community land trust
    Land trust
    There are two distinct definitions of a land trust:* a private, nonprofit organization that, as all or part of its mission, actively works to conserve land by undertaking or assisting in land or conservation easement acquisition, or by its stewardship of such land or easements; or* an agreement...

    s), often tying it to inflation
    Consumer price index
    A consumer price index measures changes in the price level of consumer goods and services purchased by households. The CPI, in the United States is defined by the Bureau of Labor Statistics as "a measure of the average change over time in the prices paid by urban consumers for a market basket of...

     plus market value of home improvements, striving to balance the community's interest in long-term affordability with the homeowner's interest in accruing equity over time.
  • Whether housing rehabilitation counts as "construction," either of market-rate or affordable units. Some cities, like New York City, allow developers to count rehabilitation of off-site housing as an inclusionary contribution.
  • Which types of housing construction the ordinance applies to. For example, high-rise housing costs more to build per square foot (thus raising compliance costs, perhaps prohibitively), so some ordinances exempt it from compliance.

Alternative solutions

While many suburban communities feature Section 8
Section 8 (housing)
Section 8 of the United States Housing Act of 1937 , as repeatedly amended, authorizes the payment of rental housing assistance to private landlords on behalf of approximately 3.1 million low-income households...

 for low income households, they are generally restricted to concentrated sections. In some cases, counties specify small districts where Section 8 properties are to be rented. In other cases, the market tends to self-segregate property by income. For instance, in Montgomery County, Pennsylvania
Montgomery County, Pennsylvania
Montgomery County is a county located in the U.S. state of Pennsylvania, in the United States. As of 2010, the population was 799,874, making it the third most populous county in Pennsylvania . The county seat is Norristown.The county was created on September 10, 1784, out of land originally part...

, a wealthy suburban county bordering Philadelphia, only 5% of the county's population live in the borough
Borough
A borough is an administrative division in various countries. In principle, the term borough designates a self-governing township although, in practice, official use of the term varies widely....

 of Norristown, yet 50% of the county's Section 8 properties are located there. The large low income resident population burdens Norristown's local government and school district
Norristown Area School District
Norristown Area School District is located in Montgomery County, Pennsylvania in the United States. The school district serves the borough of Norristown, East Norriton Township, and West Norriton Township municipalities in central Montgomery County, just north-west of Philadelphia. The district is...

, while much of the county remains unburdened.

Inclusionary zoning aims to reduce residential economic segregation
Geographical segregation
Geographical segregation exists whenever the proportions of population rates of two or more populations are not homogenous throughout a defined space...

 by mandating that a mix of incomes be represented in a single development.

Controversy

Inclusionary zoning remains controversial issue. Affordable housing
Affordable housing
Affordable housing is a term used to describe dwelling units whose total housing costs are deemed "affordable" to those that have a median income. Although the term is often applied to rental housing that is within the financial means of those in the lower income ranges of a geographical area, the...

 advocates seek to promote the policies in order to ensure that housing is available for a variety of income levels in more places. These supporters hold that inclusionary zoning produces needed affordable housing
Affordable housing
Affordable housing is a term used to describe dwelling units whose total housing costs are deemed "affordable" to those that have a median income. Although the term is often applied to rental housing that is within the financial means of those in the lower income ranges of a geographical area, the...

 and creates income-integrated communities
Community
The term community has two distinct meanings:*a group of interacting people, possibly living in close proximity, and often refers to a group that shares some common values, and is attributed with social cohesion within a shared geographical location, generally in social units larger than a household...

.

Detractors note that inclusionary zoning levies an indirect tax
Indirect tax
The term indirect tax has more than one meaning.In the colloquial sense, an indirect tax is a tax collected by an intermediary from the person who bears the ultimate economic burden of the tax...

 on developers, so as to discourage them from building in areas that face supply shortages. Furthermore, to ensure that the affordable units are not resold for profit, deed restrictions generally fix a long-term resale price ceiling
Price ceiling
A price ceiling is a government-imposed limit on the price charged for a product. Governments intend price ceilings to protect consumers from conditions that could make necessary commodities unattainable. However, a price ceiling can cause problems if imposed for a long period without controlled...

, eliminating a potential benefit of home ownership.

Free market
Free market
A free market is a competitive market where prices are determined by supply and demand. However, the term is also commonly used for markets in which economic intervention and regulation by the state is limited to tax collection, and enforcement of private ownership and contracts...

 advocates oppose attempts to fix given social outcomes by government intervention in markets. They argue inclusionary zoning constitutes an onerous land use
Land use
Land use is the human use of land. Land use involves the management and modification of natural environment or wilderness into built environment such as fields, pastures, and settlements. It has also been defined as "the arrangements, activities and inputs people undertake in a certain land cover...

 regulation that exacerbate housing shortages.

Homeowners sometimes note that their property values will be reduced if low income families move into their community. Others counter consider their concerns thinly-concealed classism
Classism
Classism is prejudice or discrimination on the basis of social class. It includes individual attitudes and behaviors, systems of policies and practices that are set up to benefit the upper classes at the expense of the lower classes...

 and racism.

Some of the most widely publicized inclusionary zoning battles have involved the REIT AvalonBay Communities. According to the company's website, AvalonBay seeks to develop properties in "high barrier-to-entry markets" across the United States. In practice, AvalonBay uses inclusionary zoning laws, such as the Massachusetts Comprehensive Permit Act: Chapter 40B, to bypass local zoning laws and build large apartment complexes. In some cases, local residents fight back with a lawsuit.http://www.boston.com/news/local/massachusetts/articles/2004/01/29/developer_aims_to_turn_tables_on_opponents/ In Connecticut, similar developments by AvalonBay have resulted in attempts to condemn the land or reclaim it by eminent domain
Eminent domain
Eminent domain , compulsory purchase , resumption/compulsory acquisition , or expropriation is an action of the state to seize a citizen's private property, expropriate property, or seize a citizen's rights in property with due monetary compensation, but without the owner's consent...

. In most cases AvalonBay has won these disputes and built extremely profitable apartments or condominiums.

The clash between these various interests is reflected in this study published by the libertarian-leaning Reason Foundation
Reason Foundation
The Reason Foundation is an American nonprofit think tank founded in 1978 that also publishes Reason magazine. Based in Los Angeles, Reason is self-described as nonpartisan and publishes a statement of values that can best be described as libertarian...

's public policy think tank, and the response of a
peer review of that research. Local governments reflect and in some cases balance these competing interests. In California, the League of Cities has created a guide to inclusionary zoning which includes a section on the pros and cons of the policies.

Inclusionary zoning in practice

More than 200 communities in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 have some sort of inclusionary zoning provision.

Montgomery County, Maryland
Montgomery County, Maryland
Montgomery County is a county in the U.S. state of Maryland, situated just to the north of Washington, D.C., and southwest of the city of Baltimore. It is one of the most affluent counties in the United States, and has the highest percentage of residents over 25 years of age who hold post-graduate...

, is often held to be a pioneer in establishing inclusionary zoning policies. It is the sixth wealthiest county in the United States, yet it has built more than 10,000 units of affordable housing since 1974, many units door-to-door with market-rate housing.

All municipalities in the state of Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...

 are subject to that state's General Laws Chapter 40B, which allows developers to bypass certain municipal zoning restrictions in those municipalities which have fewer than the statutorily defined 10% affordable housing units. Developers taking advantage of Chapter 40B must construct 20% affordable units as defined under the statute.

All municipalities in the state of New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...

 are subject to judicially imposed inclusionary zoning as a result of the New Jersey Supreme Court
New Jersey Supreme Court
The New Jersey Supreme Court is the highest court in the U.S. state of New Jersey. It has existed in three different forms under the three different state constitutions since the independence of the state in 1776...

's Mount Laurel Decision and subsequent acts of the New Jersey state legislature.

A 2006 study found that 170 jurisdictions in California had some form of inclusionary housing. This was a 59% increase from 2003, when only 107 jurisdictions had inclusionary housing. In addition, state law requires that 15% of the housing units produced in a redevelopment project areas must be affordable.

Madison, Wisconsin
Madison, Wisconsin
Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. It is also home to the University of Wisconsin–Madison....

's inclusionary zoning ordinance respecting rental housing was struck down by Wisconsin's 4th District Court of Appeals in 2006 because that appellate court construed inclusionary zoning to be rent control, which is prohibited by state statute. The Wisconsin Supreme Court
Wisconsin Supreme Court
The Wisconsin Supreme Court is the highest appellate court in the state of Wisconsin. The Supreme Court has jurisdiction over original actions, appeals from lower courts, and regulation or administration of the practice of law in Wisconsin.-Location:...

 declined the City's request to review the case. The ordinance was structured with a sunset in February 2009, unless extended by the Common Council. The Common Council did not extend the inclusionary zoning ordinance and therefore it expired and is no longer in effect.

Other communities with inclusionary zoning ordinances on the books include:
  • Burlington, Vermont
    Burlington, Vermont
    Burlington is the largest city in the U.S. state of Vermont and the shire town of Chittenden County. Burlington lies south of the U.S.-Canadian border and some south of Montreal....

  • Barnstable County, Massachusetts
    Barnstable County, Massachusetts
    Barnstable County is a county located in the U.S. state of Massachusetts, consisting of Cape Cod and associated islands. As of the 2010 census, the population was 216,902...

    , which includes Cape Cod
    Cape Cod
    Cape Cod, often referred to locally as simply the Cape, is a cape in the easternmost portion of the state of Massachusetts, in the Northeastern United States...

  • Princeton, New Jersey
    Princeton, New Jersey
    Princeton is a community located in Mercer County, New Jersey, United States. It is best known as the location of Princeton University, which has been sited in the community since 1756...

  • Frederick County, Maryland
    Frederick County, Maryland
    Frederick County is a county located in the western part of the U.S. state of Maryland, bordering the southern border of Pennsylvania and the northeastern border of Virginia. As of the 2010 Census, the population was 233,385....

  • Fairfax County, Virginia
    Fairfax County, Virginia
    Fairfax County is a county in Virginia, in the United States. Per the 2010 Census, the population of the county is 1,081,726, making it the most populous jurisdiction in the Commonwealth of Virginia, with 13.5% of Virginia's population...

    , the wealthiest county in the USA
  • Chapel Hill, North Carolina
    Chapel Hill, North Carolina
    Chapel Hill is a town in Orange County, North Carolina, United States and the home of the University of North Carolina at Chapel Hill and UNC Health Care...

  • Davidson, North Carolina
    Davidson, North Carolina
    Davidson is a town in Mecklenburg County in the U.S. state of North Carolina. The population was 7,139 at the 2000 census. It is home to Davidson College...

  • Tallahassee, Florida
    Tallahassee, Florida
    Tallahassee is the capital of the U.S. state of Florida. It is the county seat and only incorporated municipality in Leon County, and is the 128th largest city in the United States. Tallahassee became the capital of Florida, then the Florida Territory, in 1824. In 2010, the population recorded by...

  • Madison, Wisconsin
    Madison, Wisconsin
    Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. It is also home to the University of Wisconsin–Madison....

  • Boulder, Colorado
    Boulder, Colorado
    Boulder is the county seat and most populous city of Boulder County and the 11th most populous city in the U.S. state of Colorado. Boulder is located at the base of the foothills of the Rocky Mountains at an elevation of...

  • Santa Fe, New Mexico
    Santa Fe, New Mexico
    Santa Fe is the capital of the U.S. state of New Mexico. It is the fourth-largest city in the state and is the seat of . Santa Fe had a population of 67,947 in the 2010 census...

  • San Francisco, California
    San Francisco, California
    San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland...

  • Palo Alto, California
    Palo Alto, California
    Palo Alto is a California charter city located in the northwest corner of Santa Clara County, in the San Francisco Bay Area of California, United States. The city shares its borders with East Palo Alto, Mountain View, Los Altos, Los Altos Hills, Stanford, Portola Valley, and Menlo Park. It is...

  • San Mateo County, California
    San Mateo County, California
    San Mateo County is a county located in the San Francisco Bay Area of the U.S. state of California. It covers most of the San Francisco Peninsula just south of San Francisco, and north of Santa Clara County. San Francisco International Airport is located at the northern end of the county, and...

  • Sacramento, California
    Sacramento, California
    Sacramento is the capital city of the U.S. state of California and the county seat of Sacramento County. It is located at the confluence of the Sacramento River and the American River in the northern portion of California's expansive Central Valley. With a population of 466,488 at the 2010 census,...

  • West Hollywood, California
    West Hollywood, California
    West Hollywood, a city of Los Angeles County, California, was incorporated on November 29, 1984, with a population of 34,399 at the 2010 census. 41% of the city's population is made up of gay men according to a 2002 demographic analysis by Sara Kocher Consulting for the City of West Hollywood...

  • Huntington Beach, California
    Huntington Beach, California
    Huntington Beach is a seaside city in Orange County in Southern California. According to the 2010 census, the city population was 189,992; making it the largest beach city in Orange County in terms of population...

  • San Diego, California
    San Diego, California
    San Diego is the eighth-largest city in the United States and second-largest city in California. The city is located on the coast of the Pacific Ocean in Southern California, immediately adjacent to the Mexican border. The birthplace of California, San Diego is known for its mild year-round...

  • New York, New York New York City housing
  • Montclair, New Jersey
    Montclair, New Jersey
    -Demographics:As of the census of 2000, there were 38,977 people, 15,020 households, and 9,687 families residing in the township. The population density was 6,183.6 people per square mile . There were 15,531 housing units at an average density of 2,464.0 per square mile...


See also

  • Visitability
    Visitability
    Visitability is an international movement to change home construction practices so that virtually all new homes, whether or not designated for residents who currently have mobility impairments, offer three specific accessibility features...

     - Social Integration Beyond Independent Living
  • Affordable housing
    Affordable housing
    Affordable housing is a term used to describe dwelling units whose total housing costs are deemed "affordable" to those that have a median income. Although the term is often applied to rental housing that is within the financial means of those in the lower income ranges of a geographical area, the...

  • Exclusionary zoning
    Exclusionary zoning
    Exclusionary zoning is a term that, in the United States, has come to be applied to local zoning measures that appear to impose unnecessary or unjustifiable costs or requirements facially or by execution excluding various groups of ‘undesirables.'...

  • Woodward's building
    Woodward's building
    The Woodward's building was a historic building in the Downtown Eastside of Vancouver, British Columbia, Canada. The original portion of the building was constructed in 1903 for the Woodward's Department Store when that area of Cordova Street was the heart of Vancouver's retail shopping district. ...

  • Gregory Henriquez
    Gregory Henriquez
    Gregory Henriquez is a Canadian architect, best known for the design of community-based mixed-use, institutional and social housing projects in the Downtown Eastside of Vancouver, Canada...

    , architect who specializes in the use of inclusionary zoning to create affordable housing

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK