Inclusionary Zoning

Local governments can promote affordable housing by encouraging or requiring developers of new housing developments to contribute to the amount of affordable housing in the community. Inclusionary zoning can take many forms, with some programs being mandatory and others providing incentives to developers, such as density bonuses, zoning variances, or parking waivers. Some programs require cash contributions to an affordable housing fund, while others involve construction of affordable units within the development. By allowing developers to build more units than allowed under zoning provisions, inclusionary zoning can provide an economic incentive to set aside a number of affordable housing units.