The role for inclusionary zoning in regional planning - Metropolitan Planning Council

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The role for inclusionary zoning in regional planning

MPC believes there is a broad role for Inclusionary Zoning in the region. CMAP’s modeling shows a tiered, regionwide inclusionary zoning policy could help produce some 53,000 additional affordable homes by 2030.

To lay the groundwork for the GO TO 2040 regional plan , the Chicago Metropolitan Agency for Planning (CMAP) has issued a series of reports examining specific tools and policies that could help the region meet its changing and growing needs. This article builds off CMAP’s 2008 Inclusionary Zoning Strategy Report.

In 2008, CMAP's Inclusionary Zoning Strategy Report modeled two different scenarios, both of which showed tens of thousands of affordable homes could be created by 2030 if most municipalities in Chicagoland implemented inclusionary zoning policies.

In use in the U.S. since 1974, and in Illinois since 2003 (when Highland Park blazed the trail), inclusionary zoning encourages or requires the inclusion of affordable homes in residential developments. Distinct from more traditional housing policies in that it primarily relies on private developers to produce affordable homes, inclusionary zoning, if properly structured, can be a very effective way to ensure affordable homes are more evenly and equitably distributed throughout a geographic area. In Illinois, this policy has been implemented community by community. MPC and other organizations involved in workforce housing efforts have assisted municipalities such as St. Charles, Lake Forest, Chicago, and Evanston forward their own inclusionary zoning efforts. Yet, looking ahead, there seems to be significant potential for this policy approach to have a regional impact if integrated into broader regional planning efforts.

The results of the two modeling scenarios in CMAP’s Inclusionary Zoning Strategy Report (based on 2030 demographic and housing projections) support this premise:

Scenario 1: A 10 percent inclusionary zoning set aside for all new residential developments in every municipality in the region would net 50,693 additional units by 2030.

Scenario 2: If the region instituted a three-tiered inclusionary zoning approach based on need, a projected 53,029 additional affordable homes would be developed. Communities with the least amount of existing affordable housing would require 20 percent of units in all new developments to be affordable, middle-tiered communities would require 10 percent, and communities with an ample supply of affordable housing would not implement an inclusionary policy at all.

These results show that both can produce a significant amount of new affordable homes in mixed-income developments, with the second scenario edging out the first as far as overall affordable home production.

CMAP and other regional planning advocates can take the analysis a step further, by examining how a regional inclusionary zoning approach can support additional policy goals, such as connecting homes, jobs and transportation; or supporting workforce and transportation development. As the CMAP inclusionary zoning report rightly points out, “To properly address affordable housing shortages and income inequity across communities, other housing and economic development policies must work in concert with [inclusionary zoning].”

Through its GO TO 2040 regional plan and related regional scenario development, education and technical assistance efforts, and data clearinghouse and analysis capacity, CMAP can connect the dots, showing how inclusionary zoning can help the region meet multiple indicators of success. This could mean identifying “high impact” or “priority” communities by applying a similar analysis as in the two scenarios above, but also incorporating criteria such as proximity to job centers and transportation access. Then, as part of its own technical assistance efforts and coordination, CMAP can work with partner organizations to reach out to these high-impact communities (i.e., those with job and transportation assets) to promote inclusionary zoning and the complementary policy tools and programs that other communities in the region have put in place to build there own capacity to make these policies a success.

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