Agenda - Planning Commission - 02/01/2007

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and information program to promote acces- sory units. The Transportation and Land Use Coalition reports that Santa Rosa's strategy produces about 39 to 47 new accessory units each year, while Mercer Island produced about 173 accessory units between 1995 and 2004. None of these strategies would be possi- ble without zoning policies that allow reason- able use of a diverse range of housing types to expand choices and ensure the availability of homes affordable to working families. Inclusionary zoning requirements or incentives. Few housing policies have generated as much attention (and in many communities, controversy) in recent years as inclusionary zon- ing. Inclusionary zoning generally involves a ' requirement or an incentive for developers to include a modest percentage of affordable homes within newly created developments. This is one way of harnessing the power of the mar- ketto produce affordable homes. , The nation's first inclusionary zoning law developers received a density bonus allowing them to build up to 22 percent more homes than otherwise permitted. The affordable homes were required to remain affordable for 20 years. While the Montgomery County ordi- nance has been modified many times over the years, it has endured and produced more than 12,000 moderately priced homes through 2005, including 8,527 for-sale homes and 3.520 rental homes. Since that time, numerous other jurisdic- tions have adopted inclusionary zoning, espe- cially in high-cost markets such as California. According to a survey conducted by the California Coalition for Rural Housing and the Nonprofit Housing Association of Northern California, as of 2003, 107 cities and counties had adopted inclusionary zoning within the state, producing more than 34,000 affordaple for-sale and rental homes. An updated survey was recently conducted and is presently in the process of being analyzed; it is expected to reveal numerous additional jurisdictions in was enacted in the 1970S in Montgomery County, Maryland. The law specified that in any new housing development including 50 or more homes, at least 12.5 to 15 percent must be made affordable to families with incomes at or below 65 percent of the area median income. In exchange for this requirement, 56 ,\. California that have adopted inclusionary zon- ing and more complete totals of affordable homes produced. Inclusionary zoning ordinances also have been passed in Washington D.C., Fairfax County, Virginia. and many communities in and around Boston. A number of states- notably Massachusetts and New Jersey-have enacted statewide laws that achieve similar effects. While a complete analysis of this compli- cated subject is beyond the scope of this arti- cle, the following are some of the key issues for communities to consider: · Equity. Advocates of inclusionary zoning argue that because land is in limited supply and the price of homes in high-cost markets are so out of reach of working families, inclu- sionary zoning is the only cost-effective way of ensuring the production of homes affordable to working families. Opponents, on the other hand, argue that it is unfair for the govern- ment to require one class of individuals (prop- erty owners) to subsidize the public good of affordable homes. . Incentives/Offsets_ Consensus around the adoption ofinclusionary zoning is generally easier to achieve when well-crafted incen- tives (alsO known as offsets) are included to compensate property owners and develop- ers for the foregone revenue associated with producing homes at below-market prices or rents. By ensuring that development contin- ues to be an attractive financial proposition, well-crafted incentives are also likely to blunt the critique offered by some critics that inclusionary zoning policies may lead to an increase in the price of market-rate hous- Ing or a decrease in the supply of market- rate housing in the area (because develop- ers do not want to build there). The most common and effective incentive/offset is a density bonus to allow the production of more homes than would normally be permit- ted under the jurisdiction's zoning rules. Another useful incentive is to provide devel- opers proposing projects that meet speci- fied affordability guidelines with a fast-track approval process or preapproval to build "as of right." When inclusionary zoning facili- tates an increase in density in otherwise low-density areas, greater speed and cer- tainty in the approvals process, and more affordable homes, all stakeholders benefit. . Process Matters. Consensus is more likely to be achieved when the process for develop- ing recommendations includes both develop- ers and advocates. It also helps to "get into the numbers," examining the real-world impact of various proposed policies and off- sets and the applicability of the proposed policies to local market conditions and hous- ing needs. ZONING PRACTICE 12.06 AMERICAN PLANNING ASSOCIATION I page 6