Inclusionary Zoning - Inclusionary Zoning in Practice

Inclusionary Zoning in Practice

More than 200 communities in the United States have some sort of inclusionary zoning provision.

Montgomery County, Maryland, is often held to be a pioneer in establishing inclusionary zoning policies. It is the sixth wealthiest county in the United States, yet it has built more than 10,000 units of affordable housing since 1974, many units door-to-door with market-rate housing.

All municipalities in the state of Massachusetts are subject to that state's General Laws Chapter 40B, which allows developers to bypass certain municipal zoning restrictions in those municipalities which have fewer than the statutorily defined 10% affordable housing units. Developers taking advantage of Chapter 40B must construct 20% affordable units as defined under the statute.

All municipalities in the state of New Jersey are subject to judicially imposed inclusionary zoning as a result of the New Jersey Supreme Court's Mount Laurel Decision and subsequent acts of the New Jersey state legislature.

A 2006 study found that 170 jurisdictions in California had some form of inclusionary housing. This was a 59% increase from 2003, when only 107 jurisdictions had inclusionary housing. In addition, state law requires that 15% of the housing units produced in redevelopment project areas must be affordable.

However, Los Angeles, California's inclusionary zoning ordinance for rental housing was invalidated in 2009 by the California Court of Appeal for the Second Appellate District because it directly conflicted with a provision of the state's Costa-Hawkins Rental Housing Act of 1996 which specifically gave all landlords the right to set the "initial rental rate" for new housing units.

Madison, Wisconsin's inclusionary zoning ordinance respecting rental housing was struck down by Wisconsin's 4th District Court of Appeals in 2006 because that appellate court construed inclusionary zoning to be rent control, which is prohibited by state statute. The Wisconsin Supreme Court declined the City's request to review the case. The ordinance was structured with a sunset in February 2009, unless extended by the Common Council. The Common Council did not extend the inclusionary zoning ordinance and therefore it expired and is no longer in effect.

Other communities with inclusionary zoning ordinances on the books include:

• Burlington, Vermont
• Barnstable County, Massachusetts, which includes Cape Cod
• Princeton, New Jersey
• Frederick County, Maryland
• Fairfax County, Virginia, the wealthiest county in the USA
• Chapel Hill, North Carolina
• Davidson, North Carolina
• Tallahassee, Florida
• Madison, Wisconsin
• Boulder, Colorado
• Santa Fe, New Mexico
• San Francisco, California
• Palo Alto, California
• San Mateo County, California
• Sacramento, California
• West Hollywood, California
• Huntington Beach, California
• San Diego, California
• New York, New York New York City housing
• Montclair, New Jersey