New Inclusionary Zoning Tool Available for NAHB Members
From NAHB Now
Combating the housing affordability crisis requires comprehensive strategies at the federal, state and local levels to reduce building costs, boost supply and empower home buyers with a mix of housing choices. One strategy that many communities have adopted is inclusionary zoning (IZ) — local government ordinances that require a certain percentage of new residential construction to be sold or rented at below-market rates.
IZ is often adopted under the assumption that it is a simple, expedient method to address affordable housing. However, IZ is far more complicated, and there is conflicting evidence on the extent to which IZ discourages development, raises the price of market-rate homes, creates adequate affordable housing supply, or encourages economic opportunity.
Some evidence over the past decade has shown IZ to be an ineffective tool at promoting affordable housing as it acts as a tax on housing and shifts costs either to market-rate renters and home buyers, or causes developers to build elsewhere.
Click Here to view more from the article, including a link to NAHB’s Inclusionary Zoning Calculator Tool that can be used to supplement conflicting policy studies with concrete data of how IZ requirements impact development choices, including whether or not a developer proceeds on a project.