smart growth / smart energy toolkit inclusionary zoning inclusionary zoning: for community/...

Smart Growth / Smart Energy Toolkit Inclusionary Zoning

Inclusionary Zoning:for community/ neighborhood groups

Inclusionary Zoning:for community/ neighborhood groups

Smart Growth / Smart Energy Toolkit


Definition

Inclusionary zoning - a local initiative that requires a portion of housing units in a new real estate development to be reserved for affordable housing


The Problem

• Home prices are rapidly rising; • Affordable housing needs are not filled;• Only 39 out of 351 Massachusetts

municipalities met state’s 10% affordable housing requirement; (as of 2005)

How can zoning best work with local real estate markets to advance the affordable housing goals of a community?


Benefits of Inclusionary Zoning

• Expands housing opportunities;• Increases economic diversity; • Prevents sprawl;• Improves transparency in development

process;• Distributes affordable housing equitably;• Strengthens economic competitiveness of

Massachusetts.



• Meets housing needs of individuals at all income levels;

• Enables individuals to live and work in the same community.

Expands housing opportunities

Brookline, MA



• Promotes mixed-income neighborhoods;

• Increases demographic, ethnic, and cultural diversity;

• Reverses exclusionary development patterns.

Increases economic diversity

Roxbury, MA

Andover, MA



• Integrates affordable housing into existing developed areas;

• Promotes denser infill development through density bonuses and other incentives;

• Encourages rehabilitation and preservation of existing structures.

Minimizes sprawl



• Codifies requirements and incentives associated with residential development;

• Increases predictability of residential permitting;

• Improves municipal-developer relations.

Improves transparency in development process



• Promotes regional planning;

• Encourages Massachusetts municipalities to develop more affordable housing.

Distribute affordable housing equitably

Concord, MA

Scituate., MA



• Provides housing to individuals at all income levels;

• Helps to retain local workforce;

• Helps to attract new residents.

Strengthens economic competitiveness of Massachusetts

Amherst, MA


Key Policy Considerations

• Income level that affordable housing serves;

• Mandatory or voluntary zoning provisions;• Amount of affordable housing provided;• Alternatives to on-site development;• Incentives offered to developers.


Policy ConsiderationsIncome Level

• Who qualifies for affordable housing?– Low income household defined as a

percentage of area median income (AMI);

– HUD Income Limits for Massachusetts.• What is an affordable unit?

– Rent 30% gross income;– Mortgage payment 30% gross

income.


Policy ConsiderationsMandatory v. Voluntary • Mandatory inclusionary zoning – affordable

housing units required as part of every new or rehabilitated residential development;

• Voluntary inclusionary zoning – affordable housing not required in by-right development; incentive programs encourage affordable housing development.Mandatory inclusionary zoning is the most

effective tool for increasing affordable housing stock in a community.


Policy ConsiderationsAmount of Housing Provided

• Market demand for affordable housing;• Unit cost of affordable housing; • Number of new units that trigger

affordable housing requirements.

What percent of new housing units should be affordable?


Policy Considerations

• Types of Incentives– Density bonuses;– Expedited Permitting;– Increased Design Flexibility;– Tax Breaks.

What combination of incentives will spur the most affordable housing development?

Incentives


Policy ConsiderationsDevelopment Alternatives

• Types of Development Alternatives– Fee-in-lieu payments;– Off-site development;– Other waivers or hardship provisions;

• Reduce financial burden and risk to developers.

Do development alternatives significantly reduce the number of affordable housing

units built?


Keys for Success

• Zoning compatible with local real estate market;

• Supportive neighborhoods;• Supportive development community;• Strong regulatory authority;• Long-term planning.

Provincetown, MA


Case Studies

• Barnstable• Brookline• Cambridge• Marlborough• Newton• Northampton

Over 100 communities in Massachusetts have passed inclusionary zoning provisions

Brookline, MA


Additional Resources• Taking the Initiative: Affordable Housing Strategies

Guidebook (3/2003), Guidebook for Local Housing Partnerships (9/2004), and MHP’s Housing Needs Workbook (6/2003), three useful publications for housing partnerships

www.mhp.net/community_initiatives/municipalities/housing_partnerships.php

• Inclusionary Zoning: Lessons Learned in Massachusetts, Inclusionary Zoning: Guidelines for cities and towns, and Zoning for Housing Affordability, three publications for affordable housing

www.mhp.net/vision/zoning.php

• The Impact of Inclusionary Zoning on Developmentwww.bpichicago.org/rah/pubs/impact_iz_development.pdf


Additional Resources

• Mass Dept. of Housing and Community Development

www.mass.gov/dhcd/

• Mass Housing Partnershipwww.mhp.net/

• Town of Barnstable ADU ProgramPaulette Theresa-McAuliffe, 508-862-4683

• Portland, Oregon ADU ProgramMark Bello, [email protected]

• Santa Cruz, California ADU Programwww.ci.santa-cruz.ca.us/hcd/ADU/adu.html

smart growth / smart energy toolkit inclusionary zoning inclusionary zoning: for community/...

Documents

affordable housing slide

affordable housing needs

affordable housing goals

affordable housing requirement

ma slide

voluntary zoning provisions

development process

housing needs of individuals