INCLUSIONARY ZONING IN CANADA? Key Considerations from US Municipalities Lissie Rappaport MCP Candidate CIP SOUL July 20, 2018 Winnipeg, MB
OUTLINE 1. Research Purpose 2. What is Inclusionary Zoning? 3. Benefits & Challenges 4. Policy Design 5. Key Considerations for Cities 6. Discussion
PURPOSE 1.6 million urban households in core housing need 13.6%
WHAT IS INCLUSIONARY ZONING? Inclusionary zoning mandates or incentivizes developers to include a certain percentage of units in new residential developments as affordable housing. Image: Trevor Hagan (WFP)
A NOTE ON TERMINOLOGY Inclusionary zoning most commonly refers to programs implemented through a municipality s zoning regulations, and often apply across the whole city. Inclusionary housing or policies more often refer to programs that might implemented on a case-by-case basis through negotiations or incentives, such as density bonusing (Drdla, 2016; Gladki & Pomeroy, 2007; Mah, 2009).
BENEFITS & CHALLENGES Can increase affordable housing supply - often with little government funding; Can create mixed-income neighbourhoods; Relies on growth for supply; Can face considerable resistance from development industry; Not the only tool to respond to need.
POLICY DESIGN MANDATORY VOLUNTARY CITY-WIDE SPECIFIC APPLICATION HIGH SET-ASIDE LOW SET-ASIDE NO COST-OFFSETS MARKET-BASED OFF-SETS NO ALTERNATIVES ALTERNATIVES: FEES-IN- LIEU OR DEDICATION LOW AFFORDABILITY HIGH AFFORDABILITY
QUALITATIVE STUDY There are things that exist right now, in Winnipeg, that are barriers to development. Identifying those, is, kind of, identifying potential cost offsetting measures, but it s also a way of providing quote unquote cost offsetting measures that don t actually cost a municipality anything, because it s like removing something that already exists. (Sasha Hauswald, Grounded Solutions Network)
ECONOMIC FEASIBILITY STUDY (HR&A, 2016, Detroit Feasibility Study)
INCLUSIONARY CALCULATOR https://inclusionaryhousing.org/calculator/
DETROIT Mandatory inclusion of 20% affordable housing in governmentfunded projects or on government-owned land. Image: http://i.bnet.com/blogs/vacant-lots-in-rock-city.jpg
BOULDER Mandatory inclusion of 25% affordable housing in all developments.
NASHVILLE Exploring inclusionary housing: The feasibility study states an economic incentive in rental projects may actually be substantial enough to motivate developers even to voluntarily comply with an inclusionary zoning requirement (Fraser, 2016, p. 10).
KEY CONSIDERATIONS FOR CITIES Political will and public support is essential; Ample time for research and consultation; Design a policy to respond to local needs and the local market. Image: Dayna Spiring (Twitter)
DISCUSSION
REFERENCES CMHC. (2016). 13.6% Urban Households Were in Core Housing Need. https://www.cmhc-schl.gc.ca/en/housing-observer-online/2018-housing-observer/13-point-6-percent-urban-households-were-core-housing-need-2016. Drdla, R. (2016). National Housing Strategy: Inclusionary Zoning Domestic and International Practices. Ottawa: CMHC. Accessed from http://inclusionaryhousing.ca/wp-content/uploads/sites/2/2014/10/cmhc6-finrep5-20dec2016.pdf. Fraser, J. (2016). Housing Policy & Inclusionary Zoning Feasibility Study - Prepared for Metropolitan Nashville Planning Department. Economic & Planning Systems, Inc. Accessed from https://www.nashville.gov/news-media/news-article/ ID/5055/Draft-Housing-Policy-and-Inclusionary-Zoning-Feasibility-Study-report-now-online. Gladki, J. & Pomeroy, S. (2007). Implementing Inclusionary Policy to Facilitate Affordable Housing Development in Ontario. Toronto: Ontario Non-Profit Housing Association. Accessed from http://www.focus-consult.com/researchfiles/by%20 Year/2007/Inclusionary%20Zoning%20to%20Facilitate%20Affordable%20Housing%202007.pdf. HR&A, Grounded Solutions, Capital Impact Partners. (2016, November). Detroit Inclusionary Housing Plan & Market Study Presentation. Accessed from http://www.detroitmi.gov/portals/0/docs/housingandrev/hranda%20detroit%20 Inclusionary%20Housing%20Study.pdf). Mah, J. (2009). Can Inclusionary Zoning Help Address the Shortage of Affordable Housing in Toronto? Toronto: Canadian Policy Research Networks. Rappaport, L. (2018, in press). Planning for Affordable Housing: Exploring Inclusionary Housing in Winnipeg s Slow-Growth Context. Winnipeg: Canadian Centre for Policy Alternatives. Thaden, E. & Wang, R. (2017). Inclusionary Housing in the United States: Prevalence, Impact, and Practices. Lincoln Institute of Land Policy. Accessed from https://www.lincolninst.edu/sites/default/files/pubfiles/thaden_wp17et1_0.pdf.