Inclusionary zoning (IZ) is oftentimes a contentious topic. IZ is designed to help balance the housing market for low- to moderate-income families, but it has some considerable drawbacks too. If youâ€™re considering building in accordance with IZ ordinances, a Fort Lauderdale construction attorney from Cotney Construction Law can guide you through the process of IZ Orientation, registering your firm, and completing your project.
In part one of this two-part series, our Fort Lauderdale construction attorneys explained some of the benefits of IZ as well as the unique distinctions between every statesâ€™ IZ ordinances. In part two, we will take a look at more arguments for and against IZ.
Arguments for Inclusionary Zoning
Proponents of IZ support the program because they see IZ as an integral component of the development of our nationâ€™s affordable housing policy. IZ doesnâ€™t require the same level of direct public subsidy that traditional affordable housing programs operate on. For this reason, IZ is a more fiscally sustainable option than traditional affordable housing programs. Another source of support for these programs is IZâ€™s effect on the development of positive economic and racial integration. Obviously, developers can lose money by offering affordable housing units, but many of these losses can be recouped by taking advantage of incentives like density bonuses.
Arguments Against Inclusionary Zoning
Critics argue that IZ programs create equality at the expense of development. Mandatory IZ programs can constrict the development of market-rate housing because developers will opt to build in areas that donâ€™t enforce the principles of IZ instead. This restricts the supply of housing, increasing demand and causing the prices of market-rate housing to inflate. Opponents of these ordinances also argue that they are unfair to developers, who are left alone with the burden of producing affordable housing units. They believe that affordable housing helps our communities, so our communities should help fund these ordinances.
Inclusionary Zoning Findings
Researchers have made significant discoveries regarding IZ policies that should be considered by developers and policymakers who are planning on following or enforcing an IZ ordinance. After you consult a Fort Lauderdale construction attorney, consider the following:
- Every ordinance is unique
- IZ is not a cure-all for an areaâ€™s housing problems
- Affordable housing production increases when using flexible IZ policies
- IZ policies that offer incentives or bonuses to developers should help solidify the price and supply of market-rate housing
- The price and supply of market-rate housing is an important consideration for any IZ program
- Engaging with for profit and nonprofit developers may prove beneficial for designing effective policies
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.