Background

Inclusionary zoning (IZ), also known as inclusionary housing refers to municipal and county planning ordinances that require a given share of new construction to be affordable by people with low to moderate incomes. Inclusionary zoning policies were first developed in the 1970s in response to exclusionary and often racially segregated “snob zoning” and is now a popular tool for getting the private market to subsidize affordable housing.

Critics, namely developers and some economists, say the policy reduces the overall supply of housing, thus raising prices. Other anti-poverty critics say it’s a Band-Aid that doesn’t adequately address the housing needs of low-income people (source).

Los Angeles

Including low-to-moderate income housing in new housing developments is not required in Los Angeles, as a result of the 1995 Costa Hawkins Housing Act, which prevents cities from imposing rent control requirements on newly constructed properties.

As a way to encourage more affordable housing, cities have turned to allowing above-allowed zoned density for projects that include a component of on-site affordable housing. The primary tools for trading higher density for inclusionary zoning are the housing densities allowed at the State level under the 2005 Senate Bill 1818’s amendment to the State Density Bonus Law and at the local level under 2016-passed Measure JJJ’s Transit Oriented Communities Affordable Housing Incentive Program.

Relevant Regulations:

SB 1818 (California-wide)

TOC Bonus (LA City only)

LA County inclusive zoning regulations