The D.C. Zoning Commission recently took steps to require developers to include a percentage of affordable units in nearly all new apartment and condominium buildings in the District. However, this inclusionary zoning requirement still has a long way to go before it becomes law.

Housing advocates are encouraged by the proposal. “We’re pretty pleased with it,” said Cheryl Corte, Executive Director for the Washington Regional Network for Livable Communities, who expects the new guidelines to produce an additional 150 to 300 affordable units per year in the District. “The zoning commission has been very interested in housing issues and… we [will have] created a permanent housing stock.”

In the past, affordable units were not required, but developers were offered incentives, such as waivers on certain zoning restrictions, if they included affordable housing units.

Inclusive zoning has been used successfully to increase affordable housing units in other cities, most notably Boston, Denver, and San Francisco. A major victory for District affordable housing advocates is the requirement for on-site affordable housing. In similar programs in other cities, developers could build the inclusionary units in a location other than the development site.

The D.C. Zoning Commission’s plan would require developers who are building or substantially renovating a building with more than 10 units to set aside 7.5% to 15% of units for people below certain income thresholds. Some units must be designated for people earning less than 50% of the Area Median Income (AMI), which is currently about $84,000 for a family of four. The balance of the affordable units must be available to those who earn less than 80% of the AMI. If builders set aside 20% of the units as affordable housing, the zoning program includes an incentive, allowing them to increase the density of housing units in certain areas.

The zoning proposal also specifies quality requirements for the affordable units. They must be at least 95% of the square footage of regular units and have fixtures similar to those in unregulated units. Amenities in inclusionary units must also be comparable to those in a development's regular units, although the amenities may be made of less expensive materials.

Dramatic increases in D.C. housing costs over the last few years have put a strain on city residents and highlighted the need for affordable housing. Affordable housing programs allow low-income individuals and families to live near areas of explosive growth and development. Without such programs, the people who work the lower-income jobs that support such areas are faced with increased commute times and familial strain, and sometimes cannot take a job because of its distance from their home.

The number of affordable housing units in the city dropped by 12,000 in 2004, according to the U.S. Census Bureau. D.C. housing costs have escalated to some of the highest in the nation, making affordable housing all the more vital for the health of the District and its citizenry. According to the National Association of Realtors, Washington, D.C., has had the sixth highest jump in housing prices among U.S. cities. The Office of Federal Housing Enterprise Oversight tabs the increase in home prices at 127%.

A major innovation of the D.C. inclusionary zoning plan is permanence of the affordable housing. Under the proposal, property developers and all later purchasers must agree to the creation and maintenance of inclusionary units for 99 years. The zoning commission learned from experiences and successes of other inclusionary zoning plans: In many other systems, affordable housing requirements were temporary, and housing reverted to market prices over time.

According to Art Rodgers, Senior Housing Planner for the District, "The Zoning Commission felt that since the benefits [granted to developers] would be permanent, the affordable housing should be, as well."

However, developers were hoping for a more incentive-based plan, rather than a compulsory one. "The mandatory inclusionary zoning plan does not match subsidy with burden," said Jeffrey Gelman, chair of the housing committee of the D.C. Building Industry Association. "The plan does not take into account the market pressures developers face, [nor] the uniqueness of each property."

Gelman added, "We are all on the same side, but [the DCBIA] feels that there were better ways to create a sustainable affordable housing market than the current plan."

Several steps are still required before the inclusionary zoning rules can take effect. First, the Zoning Commission must still formally approve both the new regulations and the final map of the affected areas. Public meetings will be held this fall for public comment on the map. News and announcements can be found at http://www.washingtonregion.net/.

Second, the City Council has to pass legislation to administer the program. The Zoning Commission is independent of the City Council, but the City must administer the day-to-day applications, eligibility, and supervision of the housing applicants. A bill providing for such administration has been crafted by the office of Chairman Linda Cropp but has not yet been sent to committee. A vote on the bill could come as early as December, according to Rodgers.

Whatever the timing, when the program comes to fruition, Rodgers believes it will significantly improve the quantity and quality of affordable housing in the city. He concluded, "This will enable us to have affordable housing in areas where we would not have been able to before. It allows us to create diverse neighborhoods."