With nearly 10 million low- and moderate-income working households paying more than half their income towards their rent or mortgage, cities are increasingly using their zoning authority to encourage the development of new workforce housing units. A study by the ULI Terwilliger Center for Housing assesses and illustrates the economics of the most common approach: inclusionary zoning (IZ). Through IZ, cities require or encourage developers to create below-market rental apartments or for-sale homes in connection with the local zoning approval of a proposed market-rate development project. This study-based on in-depth analytic modeling, an extensive literature review, and interviews with developers and other land use experts-provides such advice on what incentives work best in which development scenarios. The study's purpose is to enable policy makers to better understand how an IZ policy affects real estate development and how to use the necessary development incentives for IZ to be most effective.

Inclusionary housing is a means of using the planning system to create affordable housing and foster social inclusion by capturing resources created through the marketplace. The term refers to a program, regulation, or law that requires or provides incentives to private developers to incorporate affordable or social housing as a part of market-driven developments, either by incorporating the affordable housing into the same development, building it elsewhere, or contributing money or land for the production of social or affordable housing in lieu of construction. This volume examines inclusionary housing programs in-depth in seven countries (United States, Canada, England, Ireland, France, Spain, and Italy) and reports on experiences in others, including South Africa, Australia, New Zealand, Malaysia, Israel, India, and Colombia.

Inclusionary zoning ordinances encourage real estate developers to set aside a portion of new development for housing that is affordable to households in a certain income bracket. The variations among such ordinances are as numerous as the communities that have adopted them, because each one must be crafted with the particular needs of the community in mind. As a result, public officials, housing professionals, and concerned citizens face a dizzying array of options when developing an inclusionary zoning ordinance. This guide explains the major policy decisions associated with inclusionary zoning and provides the legal context for those decisions. It also provides examples of ordinance language from inclusionary zoning programs around the country - including recently enacted programs from North Carolina - to illustrate specific choices. The aim is to help with the task of developing or modifying an inclusionary zoning ordinance by translating policy decisions into a working ordinance. A free PDF download of the table of contents is available (https: //www.sog.unc.edu/publications/books/inclusionary-zoning-guide-ordinances-and-law /details).