Dive Brief:
- Lincoln Institute of Land Policy, a think tank based in Massachusetts, released a report Thursday favoring inclusionary zoning rules, which are currently hot topics in cities across the U.S., including Portland, ME; New York; Chicago; Boston; and San Jose, CA.
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"Inclusionary Housing: Creating and Maintaining Equitable Communities" examined case studies in the U.S. and found that zoning rules don't increase market-rate prices. But it also noted that an ill-conceived ordinance could discourage development.
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The organization's president said lower and middle class inhabitants are separated from the best-paying jobs, safer neighborhoods, better schools and mass transportation when market prices get white-hot.
Dive Insight:
This report somewhat defies claims from builders, contractors and developers who say affordable housing practices allow cities to take away their land, resources and profits.
In San Jose, CA, for example, builders claim the affordable housing mandate represents an unconstitutional "taking" of property and will result in developers transferring the added cost of building below-market rate units to buyers of new homes — causing home prices to spiral even further out of control.
Portland, ME, is the latest city to weigh the needs of residents against development booms, as developers there also say requiring affordable units will result in higher prices of the remaining market-rate units.
The report said that inclusionary housing rules will not eradicate the issue, but the authors pushed on all sides to contribute to the solution.
"It is entirely reasonable to ask real estate developers to help address the pressing need for more affordable housing, because developers and landowners benefit financially from the conditions that give rise to the shortage of decent, well-located homes for lower-income residents," the report said.