
Now is Not the Time for Affordability Mandates
As the supply of California housing dwindles more and more local officials – desperate to do something in response – are wrongly placing affordability mandates on new development and, thereby, killing production.
These mandates – the most popular being inclusionary zoning – demand that locals won’t approve a housing project until the developer agrees to provide a certain percentage of its units at below-market prices or rents. (The below-market homes are usually built on site – to socially engineer the residency.)
Although there is lukewarm opposition at the Capitol to imposing this policy statewide, it has become the law in about 140 local communities around the state – usually enjoying the force of a locally authorizing ordinance. Ironically, as the housing problem worsens, the mandate is increasing in popularity.
As it exists here in California, inclusionary zoning works like this: Let’s say you wanted to build 100 homes on 30 acres you own. (When you bought the land it was already zoned for single-family housing so at least that part of the seemingly endless approval process is behind you.) You look to sell the homes anywhere from… Read More