Created by Grounded Solutions Network
Inclusionary housing, or the practice of requiring affordable housing units within a mostly market-rate development, is a key tool for creating housing affordability without government subsidy. For inclusionary housing requirements to be most effective — balancing the number of affordable units and the depth of affordability with the ability for the overall project to pay for the affordable units — local jurisdictions should complete economic feasibility studies.
Grounded Solutions Network, UC Berkeley’s Terner Center, and the Lincoln Institute of Land Policy convened a group of industry experts to identify best practices and key considerations.
The report includes discussion of:
- Study methodology
- Variation over time
- Geographic variation
The report’s appendix includes a sample statement of work for jurisdictions to use when seeking a consultant for an inclusionary housing feasibility study.
Inclusionary housing is an important tool that local jurisdictions can use to create affordable housing in their communities without local subsidy. To design a program that successfully creates affordable housing, jurisdictions must consider how the local housing market, development costs and their own policies impact project feasibility.
Grounded Solutions has created an online calculator with several inputs to model these impacts.