What is Inclusionary Zoning?
Inclusionary Zoning (IZ) policies require new and/or rehabilitated residential developments to include housing units affordable to low and moderate-income residents. In exchange, developers may receive non-monetary compensation—in the form of density bonuses—that reduce construction costs.
Who is Using Inclusionary Zoning?
For almost 30 years, hundreds of cities and counties throughout the United States– including areas neighboring the District–have used inclusionary zoning to help meet their affordable housing needs and build vibrant, mixed income communities. Jurisdictions with housing needs as varied as Boston, Sacramento, Santa Fe, Denver, Montgomery County, Boulder, Cambridge, and San Francisco have found IZ to be an effective strategy for producing and promoting the more equitable distribution of affordable housing.
Why Does DC Need Inclusionary Zoning?
Many District families pay too much for housing. Incomes have not kept pace with the cost of housing in the District: from January 1999-March 2003, the sale price of homes rose four times faster than income, and the price of rentals rose three times faster. A household in DC would need to earn $85,052 to afford to purchase the average home, and $72,160 to afford the average rental. Yet, the median household income is $52,300. More than 35 percent of renters and 24 percent of homeowners are paying more than they can afford for housing.
The District’s long term health depends on housing for its workforce. As the chart above shows, the price of homes and apartments are out of reach of the workers who keep this city going. A range of policies are urgently needed that will help meet the affordable housing needs of current and future District residents. Mandatory inclusionary zoning is an important part of the solution.
Benefits of Inclusionary Zoning
Inclusionary zoning could provide some important benefits to the District such as:
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