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AKA  Inclusionary Zoning r.Key Elements of an Inclusionary Housing Policy//Adoption process Targeted Development Thresholds & Exemptions Production Requirements Affordability Goals Alternative Compliance Cost Offsets & Incentives LZZZZZZZZZZZZZZ    sAdoption Process$Mix of Objective & Subjective Pragmatic Compromise Political Will for Implementation Needed for opponents to compromise Independent Economic Impact Study by Consultant Legitimacy Objective Analysis &PPP"P#PP0PPPPP"#  0     tAdoption Process$Inclusionary Housing Task Force Legitimacy Design Basic Structure Jurisdiction's attorney drafts & revises Planning commission reviews Governing body enacts ordinance ( Z"ZZ)ZZZZ!ZZZZ " )                   b,Identify Type of Development to be Targeted  -+Applied to development that meets a specific threshold, size or criteria: Number of Units Parcel Size Type of development Location of development Presence of infrastructure \JdJ e _1Development Exempt from Inclusionary Requirements22Based on housing type, use or size: Housing already affordable or subsidized Very small developments Housing determined to be unable to meet inclusionary requirements Housing uses encouraged by the jurisdiction e.g. mobile home $PP)PPPPCPP=PP$)C=y%Inclusionary Production Requirements&&Percentages of affordable housing that must be produced Vary; 10% to 20% common Housing tenure ownership, rental, transitional Product type: multifamily, single family, duets, condominium Construction criteria  size, amenities, materials, appearance, location 8ZZZ0ZZ=ZZIZZ80=J{>Standard Approach: Concurrent Production of Inclusionary Units??Built onsite with market rate housing Dispersed throughout the development, not clustered Must be completed before market units can be sold or rented Similar to market rate units in appearance & product type Don t have to be of the same size or quality &PP4PP<PP:PP-PP& 4 < : /q&Alternatives to Concurrent Production '%$In-lieu fees Reflect actual costs of producing the unit Dedication of other developable land Criteria: density, infrastructure, zoning, location Development of housing on another site Criteria: appropriate location, not isolated Z+ZZ&Z4ZZ'Z.ZZ+&4  '.&Alternatives to Concurrent Production '%$Development credits: affordable units built at another site in jurisdiction that exceed inclusionary requirements can be credited to another project Combination concurrent production combined with other methods Alternative use e.g. special needs, transitional housing >9 > 9}!Criteria for use of Alternatives " $:Typically at jurisdiction's discretion Usually allowed when: Alternative better meets affordable housing goals Concurrent production is infeasible If alternatives are at developer s option they should be revenue/production neutral Not a cheap way to evade the inclusionary ordinance 'ZZZVZZTZ4ZZ'V  T  4z$Affordability Goals and Requirements%%Determine income affordability of inclusionary units Specify affordability calculation Household income Household size Percent household income to housing cost  30% vs. 35%? Purchase assumptions: buyer contributions, interest rate 5ZZ"ZZZZZ5 "|0Affordability Goals for Inclusionary Production 11Set proportion of units that must be affordable to different incomes E.g. half affordable to moderate-income, half low-income Usually provide developer a set of preconfigured options Length of affordability Equity appreciation Resale procedures Occupancy & use restrictions EPrPPPCPPPPErC     [8Unit Percentage Requirements and Affordability Tradeoffs"98More inclusionary units that are less affordable (e.g. moderate-income households) Less inclusionary units that are more affordable (e.g. very low-income households) Deeper affordability will require more incentives and other assistance SSGS S G~;Use lots of Carrots: Typical Incentives Used in California <<Increased density/density bonus Design flexibility/relaxed standards Fee waivers & deferrals Subsidies Fast-track entitlements  %   %   R5)Use Lots of Carrots: Emerging Incentives **"Clustering of inclusionary units Building inclusionary units last Product type substitutions  attached Townhome instead of detached SFH Development partnerships with nonprofit builders Progressive production options: More units for more & higher value incentives. !!G1O!!G1MWhat has the Research ShownNobody has scored a knockout blow Major critique of IH  Reason Report largely discredited because of flawed data  Pro-IH research has collected data on local policies - structure, implementation, productivity Hasn t fully addressed economic impact issues Analysis of residential building permit data shows no adverse impact "ZZPZZaZ.ZZEZZ"Pa.  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