What is an Inclusionary Housing Policy?

Inclusionary Housing Policy Inclusionary housing or inclusionary zoning are local policies that tap economic gains from rising real estate values to create affordable housing for low- or moderate-income households. These policies leverage new development profitability to fund affordable housing without direct government subsidies or public funding.

How the Policy Works

• Requires developers to sell or rent 10-30% of new units to lower-income residents
• Targets lower-income residents for affordable rentals or sales at below-market rates
• Captures increased land value for affordable housing purposes through mandates
• Applies as condition of development approval for new residential construction projects

Primary Benefits and Outcomes

• Creates economically diverse and inclusive communities with mixed income levels
• Makes affordable housing without direct public funding required from taxpayers
• Taps rising real estate values for broader community benefit and social equity goals
• Reduces segregation and promotes integration across different income neighborhoods

Inclusionary housing policies create affordable housing opportunities by requiring developers to include lower-income units in market-rate developments as a development approval condition.