“Inclusionary Housing” What does it mean? Inclusionary Housing Policy relies on the production of housing by private industry to bring along with it a complement of affordable housing. Developers are required to set aside a specified percentage of housing units in a market rate development and price them at a level that is affordable to low and moderate- income households. The most effective Inclusionary Housing policies use local zoning powers to create requirements and incentives to promote the development of affordable housing within the private market.

Inclusionary Housing: How Does It Work? The Basic Elements Set-Aside -- the percentage of units within a proposed development that a developer is required to price as affordable. Cost Offsets -- benefits given to developers in exchange for setting aside a percentage of units as affordable. Examples include density bonus, expedited permit process, relaxed parking requirements, relaxed setback requirements -- all are designed to decrease the developer’s cost of construction. Income Targeting -- the income range of households to which the units will be affordable. Typically the target is based upon a percentage of the area median income.

Period of Affordability (Control Period) -- The length of time the affordable units must be required to stay affordable. Certain legal mechanisms, such as deed restrictions and covenants can be used to guarantee that the units stay affordable for a specified time period. Monitoring and Enforcement -- an administrative system to make sure the program is being followed and that eligible families are being housed in affordable units. Administrative Set Aside -- a percentage of units that are purchased and managed by a nonprofit housing agency or local housing authority/commission to be maintained as affordable rental units.

With 20% density bonus, developer actually constructs 120 units on site. 15% of those 120 units (18 units) must be affordable 102 units are market rate Affordable units are sold at prices that make them affordable to moderate, low and very low income people. Non-profits get first right to purchase 6 units to keep them affordable Example: 100 Unit Market Rate Development

Units are similar in external appearance. Exterior construction materials are complimentary to, and blend with those of market rate units. Affordable units are seamlessly integrated throughout the community Density is achieved through innovative design features Inclusionary Housing: What does it look like?

Inclusionary Housing steadily creates affordable housing over time From 1980 – ,000 units were built in metro Baltimore

What an Inclusionary Housing law would have meant from 1980 to ,300 affordable homes for modest income workers 12,600 affordable homes for low income workers

Worcester County Inclusionary Housing Presentation Innovative Housing Institute Patrick Maier, Executive Director Inhousing.org website 22 Light Street Suite 300, Baltimore, MD