1. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Inclusionary Zoning: for community/ neighborhood groups Smart Growth / Smart Energy Toolkit

2. Smart Growth / Smart Energy Toolkit Inclusionary Zoning 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

3. Smart Growth / Smart Energy Toolkit Inclusionary Zoning 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?

4. Smart Growth / Smart Energy Toolkit Inclusionary Zoning 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.

5. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Benefits of Inclusionary Zoning Meets housing needs of individuals at all income levels; Enables individuals to live and work in the same community. Expands housing opportunities Brookline, MA

6. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Benefits of Inclusionary Zoning Promotes mixed- income neighborhoods; Increases demographic, ethnic, and cultural diversity; Reverses exclusionary development patterns. Increases economic diversity Roxbury, MA Andover, MA

7. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Benefits of Inclusionary Zoning 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

8. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Benefits of Inclusionary Zoning Codifies requirements and incentives associated with residential development; Increases predictability of residential permitting; Improves municipal-developer relations. Improves transparency in development process

9. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Benefits of Inclusionary Zoning Promotes regional planning; Encourages Massachusetts municipalities to develop more affordable housing. Distribute affordable housing equitably Concord, MA Scituate., MA

10. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Benefits of Inclusionary Zoning 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

11. Smart Growth / Smart Energy Toolkit Inclusionary Zoning 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.

12. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Policy Considerations Income 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.

13. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Policy Considerations Mandatory 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.

14. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Policy Considerations Amount 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?

15. Smart Growth / Smart Energy Toolkit Inclusionary Zoning 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

16. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Policy Considerations Development 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?

17. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Keys for Success Zoning compatible with local real estate market; Supportive neighborhoods; Supportive development community; Strong regulatory authority; Long-term planning. Provincetown, MA

18. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Case Studies Barnstable Brookline Cambridge Marlborough Newton Northampton Over 100 communities in Massachusetts have passed inclusionary zoning provisions Brookline, MA

19. Smart Growth / Smart Energy Toolkit Inclusionary Zoning 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_p artnerships.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 Development www.bpichicago.org/rah/pubs/impact_iz_development.pdf

20. Smart Growth / Smart Energy Toolkit Inclusionary Zoning Additional Resources Mass Dept. of Housing and Community Development www.mass.gov/dhcd/ Mass Housing Partnership www.mhp.net/ Town of Barnstable ADU Program Paulette Theresa-McAuliffe, 508-862-4683 Portland, Oregon ADU Program Mark Bello, mbello@ci.portland.or.usmbello@ci.portland.or.us Santa Cruz, California ADU Program www.ci.santa-cruz.ca.us/hcd/ADU/adu.html