Inclusionary Housing Program

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Inclusionary Housing Program

The Inclusionary Housing Program (IHP) is designed to preserve and promote affordable housing within neighborhoods where zoning has been modified to encourage new development. The Division of Inclusionary Housing administers the following programs:

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Voluntary Inclusionary Housing

In areas where the Voluntary Inclusionary Housing (VIH) Program, enacted in 1987, is applicable (R-10 Districts, IH Designated Areas and Special Districts), a development may receive a density bonus in return for the new construction, substantial rehabilitation, or preservation of permanently affordable housing.

The density bonus generated can be utilized to increase residential floor area on-site and/or off-site. An on-site project is one where the density bonus is located in the same building as the affordable units that generate the bonus. An off-site project is one where the density bonus is not located in the same building as the affordable units that generate the bonus. For off-site projects, the density bonus must be located on a zoning lot either: 1) within the same Community District as the zoning lot containing the affordable units, or 2) within an adjacent Community District and within ½ mile from the zoning lot that contains the affordable units.

In R10 Districts, the amount of density bonus that a project produces varies by type of construction (new construction, substantial rehabilitation and preservation) and funding source (public vs. private financing). While in IH Designated areas and Special Districts, density ratios are the same regardless of type and funding source. Generally speaking, Inclusionary units must be affordable to low income households earning up to 80% of Area Median Income (AMI) and rents capped at 30% of 80% of AMI. However, in some Special Districts, depending on the district, a density bonus may be granted for moderate and/or middle income units (125% - 175% AMI).

VIH Development Process

VIH Fee Payment

The total filing fee must be paid upon execution of the regulatory agreement.

Additional Materials

Mandatory Inclusionary Housing

Mandatory Inclusionary Housing (MIH), enacted in March 2016, requires a share of new housing in medium- and high-density areas that are rezoned to promote new housing production—whether rezoned as part of a city neighborhood plan or a private rezoning application—to be permanently affordable.

Within geographies established as MIH areas, the text amendment requires permanently affordable housing set-asides for all developments over 10 units or 12,500 zoning square feet, or, as an additional option for developments between 10 and 25 units (or 12,500 and 25,000 square feet), a payment into an affordable housing fund. MIH requires permanently affordable housing within new residential developments, enlargements, and conversions from non-residential to residential use within subsequently mapped MIH areas. Developments, enlargements or conversions that do not exceed either 10 units or 12,500 square feet of residential floor area are exempt from the requirements of the program. HPD is responsible for the administration of MIH Program.

MIH Development Process