[Massplanners] Inclusionary Zoning questions

[Jeffrey Robert Levine]

I often use the Lincoln Institute resources; they are very good. ULI also has a good report here:

https://uli.org/wp-content/uploads/ULI-Documents/Economics-of-Inclusionary-Zoning.pdf

In my experience, it should apply to all development over a certain size, and ideally be a new type of Special Permit to ensure that the compliance strategy is thought through (and to give staff the support of a board.) You don't want to have too much staff discretion or developers will try to argue their way out of the requirement, especially when it's new.

I don't recommend making the AMI requirements too complicated. Start with something simple, like all 80% AMI or 50/50 60%/80% AMI.

I have found that early on, most developers use a fee in lieu, especially in condo projects. So set it at a high enough level that you will be able to produce the units. Remember that you can leverage those fees in lieu, so ideally each fee for a unit can be used to help fund several units in combination with other funding sources.

Finally, and you didn't ask this, don't set the initial percentage too high (or too low.) This is an internal subsidy for the units and at first it will be hard for developments to adjust. Over time, there's a fair amount of research that land values adjust down to absorb the cost, but that takes time.

Good luck. I think a good IZ policy is a great way to leverage private development and help address affordability issues.

Jeff

Jeff Levine, AICP (he/him)
Lecturer in Housing, Community & Economic Development
Department of Urban Studies & Planning
Room 9-511
jrlevine at mit.edu<mailto:jrlevine at mit.edu>
Personal Zoom Room: https://mit.zoom.us/my/jeff.levine
@JLevineDUSP
(617) 253-3964
[MIT]



From: MassPlanners <massplanners-bounces at masscptc.org> On Behalf Of Anthony Flint via MassPlanners
Sent: Tuesday, September 13, 2022 9:45 AM
To: Tozer, Jeanette <TozerJ at worcesterma.gov>; MassPlanners at masscptc.org
Subject: Re: [Massplanners] Inclusionary Zoning questions

Jeanette,

I'm sure Massachusetts communities can share experiences, but here are some resources for further background, looking at how other cities and towns have crafted their IZ ordinances, including addressing the sliding-scale and in-lieu features you mention.

Policy Brief: https://www.lincolninst.edu/publications/policy-briefs/inclusionary-housing

Full report: https://www.lincolninst.edu/publications/policy-focus-reports/inclusionary-housing

Survey of IZ policies in Working Paper: https://www.lincolninst.edu/publications/working-papers/inclusionary-housing-in-united-states

Best,

Anthony Flint<http://anthonyflint.net/>
Senior Fellow, Lincoln Institute of Land Policy<https://www.lincolninst.edu/>
Host, Land Matters podcast<https://www.lincolninst.edu/publications/podcasts-videos>
617-930-1044
@landpolicy<https://twitter.com/landpolicy>
Join our mailing list<https://go.lincolninst.edu/subscribe>


From: MassPlanners <massplanners-bounces at masscptc.org<mailto:massplanners-bounces at masscptc.org>> On Behalf Of Tozer, Jeanette via MassPlanners
Sent: Tuesday, September 13, 2022 9:19 AM
To: MassPlanners at masscptc.org<mailto:MassPlanners at masscptc.org>
Subject: [Massplanners] Inclusionary Zoning questions

Hello Planners! The Worcester City Council is contemplating the adoption of an Inclusionary Zoning ordinance, and it would be incredibly beneficial to hear from other IZ communities about their experiences and processes related to the following questions:


  1.  Does the IZ requirement apply to by-right development as well as Special Permit development, and what mechanism is used as the initial screening to ensure projects comply (e.g., zoning determination form)?
  2.  If there is a sliding scale AMI requirement (e.g., 50%, 60%, and 80% AMI), are units being created at all levels, or do developers tend to choose a particular option?
  3.  If there is a payment in lieu of option, are developers electing to use that option, or are they building the affordable housing units?

I appreciate any insights and thoughts you're able to share!

Thank you,
Jeanette

Jeanette R. Tozer, AICP (she, her)
Affordable Housing Trust Fund Manager
Executive Office of Economic Development
City of Worcester | 455 Main Street, Worcester, MA 01608
P: 508-799-1400 x31438
E: tozerj at worcesterma.gov<mailto:tozerj at worcesterma.gov>
www.worcesterma.gov<http://www.worcesterma.gov/>

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