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

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Presentation transcript:

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

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

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?

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.

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.

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.

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?

Smart Growth / Smart Energy Toolkit Inclusionary Zoning Policy Considerations Types of Incentives –Density bonuses; –Expedited Permitting; –Increased Design Flexibility; –Tax Breaks. Reduced financial burden and risk to developers; Protection against takings challenges. What combination of incentives will spur the most affordable housing development? Incentives Amherst, MA

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 amount of affordable housing developed?

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

Smart Growth / Smart Energy Toolkit Inclusionary Zoning Benefits of Inclusionary Zoning Expands housing opportunities Increases economic, demographic, and cultural diversity Prevents sprawl Improves transparency in development process Distributes affordable housing equitably Improves economic competitiveness of Massachusetts

Smart Growth / Smart Energy Toolkit Inclusionary Zoning Implementation Integrates affordable units into development through matching building materials and design styles Boston, MA

Smart Growth / Smart Energy Toolkit Inclusionary Zoning Implementation Provides affordable units with equal access to public amenities Belmont, MA

Smart Growth / Smart Energy Toolkit Inclusionary Zoning Implementation Situates affordable units near public transit Scituate, MA

Smart Growth / Smart Energy Toolkit Inclusionary Zoning Implementation Construct affordable units on a schedule that coincides with market rate construction Market-rate Units (% Complete) Affordable Housing Units (% Required) <30%- 30% plus 1 unit10% Up to 50%30% Up to 75%50% 75% plus 1 unit70% Up to 90%100%

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

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 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 The Impact of Inclusionary Zoning on Development

Smart Growth / Smart Energy Toolkit Inclusionary Zoning Additional Resources Mass Dept. of Housing/Com. Dev. Mass Housing Partnership Town of Barnstable ADU Program Paulette Theresa-McAuliffe, Portland, Oregon ADU Program Mark Bello, Santa Cruz, California ADU Program