The Real Estate Espresso Podcast Inclusionary Zoning
On today’s show we are talking about inclusionary zoning. This is a new initiative in many communities aimed at creating affordable housing.
The actual goal of inclusionary zoning varies from one community to another. In some locations there is a narrative that single family detached homes create an economic divide and therefore widen racial segregation that is implicit with economically segregated neighbourhoods. You won’t find an affordable home in the middle of a neighborhood surrounded by luxury homes.
In other communities, the definition of inclusionary zoning is aimed at creating affordable housing by effectively taxing developers with burden of building a number of affordable units in exchange for the right to build a number of market rate homes. The theory is that by sprinkling affordable housing throughout the city as part of new development projects, you prevent the ghetto effect of lower income areas separated from the more affluent areas.
Inclusionary zoning programs vary widely in their implementation. In some cases, developers may also have the option of building affordable units in other locations within a city, or they may be able to pay cash instead of developing affordable units.
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Host: Victor Menasce