Inclusionary zoning (IZ) is a best practice for boosting the supply of affordable housing in growing or rapidly gentrifying neighborhoods. Get the help you need to effectively implement inclusionary zoning in your community.
Inclusionary zoning is one tool to increase the stock of affordable housing in your community. In Florida, thousands of affordable units have been created through IZ. Whether you are in a built-out urban community or a rural area expecting an uptick in new development, we can help your community establish and implement an inclusionary zoning policy that ensures the production of long-term affordable units.
What is Inclusionary Zoning?
- Inclusionary zoning (IZ) is an affordable housing tool that requires some market-rate developers to also develop some units that are affordable to low-and moderate-income households. The number of affordable units required is typically a given percentage of the total number of units developed.
- IZ can come in a variety of forms. IZ can be an ordinance that covers an entire jurisdiction, an overlay district over a redeveloping area, a negotiated development agreement, or other method.
- Most IZ policies provide for flexibility in implementation. They may allow developers to build affordable units at a site other than the market-rate development, for instance. Or they may accept fees or land donation in lieu of the development of affordable units.
- IZ programs provide incentives or benefits for the housing developers. For instance, developers may be allowed to build more units on a given site than typically allowed, may have the permitting process fast-tracked, and/or may have certain fees waived.
- Nationally, over 174,000 affordable homes have been produced with IZ.
How did House Bill 7103 affect Inclusionary Zoning in Florida?
In 2019, the Florida Legislature passed House Bill 7103. This bill amended the state’s inclusionary zoning statutes. Under new state law, local governments must now “fully offset all costs” to a developer when those costs result from an inclusionary housing ordinance.
For example, if there is a 100-unit market development and a 10% inclusionary requirement, the local government would need to “fully offset all costs” associated with the 10 required affordable units. Local governments can do so by providing incentives such as density or intensity bonuses, reducing or waiving fees, or by granting other incentives. Local governments can also offset costs by granting an up-zoning that raises the value of the developer’s property. For example, if a local government rezones a parcel from an agricultural use to a residential use, the local government will have increased the value of the land. A rezoning from a zoning category that only allows 5 units/acre to a zoning category that allows 30 units/acre, for example, will also increase the value of land. This increase in land value can be used in the calculation to fully offset costs.
The Florida Housing Coalition, with its years of development expertise, can assist your community in developing an inclusionary zoning policy that complies with new state law.
How we can help?
In a time when Florida is seeing an increase in population and an increase in the need for affordable housing, IZ can be an extremely valuable tool for the creation of affordable units. IZ ordinances are increasingly popular as evidence mounts and consensus is reached that IZ serves the community. Employers and the workforce benefit when residential developments provide a balance of market rate and affordable housing.
The Coalition is available to provide:
- Education on IZ and its benefits
- Best practices for implementing and administering an IZ program
- Assistance complying with HB 7103
- State and local advocacy on IZ as tool to produce affordable housing
Inclusionary Zoning Compliance with House Bill 7103
View the below webinars for an introduction to inclusionary zoning and compliance with House Bill 7103.
Part I: Dispelling Myths & Guidelines for Compliance
Part II: Dispelling Myths & Guidelines for Compliance
Request Assistance for your Community’s Inclusionary Zoning Policies
Inclusionary zoning policies are not simple to craft or administer, but they are essential for large scale developments and gentrification prevention. Ask us how to best implement inclusionary zoning in your community.