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OFFICE OF THE INDEPENDENT BUDGET ANALYST REPORT <br />Date Issued: July 12, 2018 IBA Report Number: 18-21 <br />City Council Docket Date: July 31, 2018 <br />Item Number: TBD <br />Comparison of Inclusionary Housing <br />Programs <br />OVERVIEW <br />To facilitate the affordable housing discussion planned at City Council on July 31, this report <br />provides requested information from Councilmember Ward's office regarding the various <br />components of inclusionary housing programs in California cities. In addition, information on the <br />effect of recently enacted legislation, Chapter 376 of Statutes of 2017 (AB 1505) was requested. <br />AB 1505 allows cities to require that rental residential development include a certain percentage <br />of affordable rental units and provide alternative means of compliance. This bill supersedes a court <br />decision that deemed inclusionary zoning policies for rental residential development in conflict <br />with the state's Costa -Hawkins Rental Housing Act. <br />BACKGROUND <br />What is Inclusionary Housing? <br />Inclusionary housing refers to programs and strategies that promote the creation of affordable <br />housing when new development occurs.' This includes fee-based policies such as housing impact <br />or linkage fees, which are fees assessed on new development intended to mitigate a resulting <br />demand in affordable housing. Inclusionary zoning is a type of inclusionary housing strategy that <br />requires or encourages a certain portion of affordable housing units to be provided within market - <br />rate projects.2 <br />' Thaden, Emily and Ruoniu, Wang, "Inclusionary Housing in the United States: Prevalence, Impact, and Practices," <br />Lincoln Institute of Land Policy, September 2017. <br />'United States Department of Housing and Urban Development, Office of Policy Development and Research, <br />"Inclusionary Zoning and Mixed -Income Communities," <br />httus://www.huduser. ov portal/periodicals/em/snringl3/highlight3.html, <br />OFFICE OF THE INDEPENDENT BUDGET ANALYST <br />202 C STREET MS 3A SAN DIEGO, CA 92101 <br />Tel; (619) 23&V1M13J.Xt3)-236-6556 <br />