Inclusionary Zoning Case Studies

Issues Addressed:
Affordable Housing

Chester, NH

Chester had a version of IZ for cluster housing that provided affordable units at different income levels. That system produced more than 70 affordable units. It was repealed in 2007 and replaced with a version that offered a density bonus for age-restricted units. In 2020, the bonus was adjusted to encourage Workforce Housing instead. (Under New Hampshire law, homes are considered “Workforce Housing” when they meet the requirements of RSA 674:58-61 being affordably rented to a three person household earning no more than 60% of the Area Median Income (AMI) or sold to a four person household earning no more than 100% AMI.)

Exeter, NH

Exeter’s zoning ordinance provides for IZ. Developments can opt into the IZ program if they provide at least 10% of units at affordable rates to income-eligible residents and if they adhere to design standards. The IZ program is structured by removing density caps for new developments and allowing dimensional and parking requirements to dictate allowable residential density, while also increasing some height limits and reducing parking requirements.

Seattle, WA

The City of Seattle offers a voluntary “Incentive Zoning” program for new development. In exchange for either building affordable housing, making an in-lieu payment, or providing another amenity from a list of community benefits, the City will allow more gross floor area in a development. In 2022, the program raised more than $800,000 dollars for affordable housing and other public benefits, directly created three affordable housing units, and directly generated other public benefits.

State Law

Resources

Related Tools

A diagram with two versions of the same plot of land, one over the other. On the top version, the land contains only one single-family home with many wings and a large garage and a long driveway. This version is labeled with a large 'X' and "Regulations cannot mandate unaffordable housing everywhere." The version below contains two modestly sized single-family homes at the front of the site, and a driveway leading back to a cottage court, containing six small single-family homes around a central green. This version is labeled with a large checkmark and "Workforce housing must be allowed in a majority of residential areas."
Workforce Housing Ordinance
Three axonometric diagrams connected by one-way arrows. First, a small home on a small plot of land labeled "Historic, compact development pattern." Second, a larger home on a larger plot of land with arrows specifying setbacks, etc. labeled "Development mandated under zoning." Third and finally, a home and land parcel the same size as the first drawing, with arrows indicating setbacks, etc. and labeled "Reduced requirements."
Reduced Zoning and Subdivision Requirements
A diagram showing an axonometric view of an area with several colorful 1.5 and two-story homes. An area is demarcated on the land and labeled "Designated Housing Opportunity Zone." Below the axonometric drawing is the label "Taxes in Housing Opportunity Zone" with a column chart with two bars. The column on the left is labeled "Before new development" and "Taxed value on property before development." That column is small and shown in green. A larger column on the right is labeled "After new development." The portion of the column equal to the "Before new development" column is also green. The portion above that is gray and hatched and labeled "Untaxed value on new development: savings for up to 10 years."
Housing Opportunity Zones
A diagram of an idealized age-friendly neighborhood. The neighborhood includes a mix of housing types, including detached single-family homes of various sizes, mixed-use buildings, and a cottage court. The diagram includes the following labels pointing to aspects of the drawing: "Nearby retail, community center, and open space;" "Diverse housing options, including apartments and starter homes;" "Single-story housing layouts with shared amenities;" "Sidewalks and other accessible infrastructure;" and "Accessory dwelling units for multi-generational households."
Age Friendly Neighborhoods