Inclusionary Zoning

Inclusionary Zoning (IZ) are council policies that retain a share for the community of the economic gains from rising real estate values to create affordable housing for low to moderate income families. An inclusionary housing zone or private developer's agreement might require developers to sell or rent 10 to 30 percent of new residential units to lower to moderate income residents, with that affordability retained in to the future even if the home is sold on later.

Many, but not all, IZ programs partially offset the cost of providing affordable units by offering developers incentives such as development contribution rebates or the right to build at higher densities.