Inclusionary Housing Will Help Low-Income Residents & End Segregation

As American cities rebound and develop after years of disinvestment, rising housing costs are excluding lower-income residents, and inclusionary housing could be the only solution to ensure that cities remain integrated.

A recent report from the Lincoln Institute of Land Policy determined that inclusionary housing, or a policy by which  developers provide for the construction of affordable housing, is an effective way to reduce economic segregation during a period of rapid gentrification in the U.S. In addition, these inclusionary measures can also be used to avoid economic mishaps and legal concerns.

"In hot-market cities, skyrocketing housing prices push middle class and low income residents far away from well-paying jobs, reliable transportation, good schools and safe neighborhoods," said George W. "Mac" McCarthy, Lincoln Institute president. "Inclusionary housing alone will not solve our housing crisis, but it is one of the few bulwarks we have against the effects of gentrification—and, only if we preserve the units that we work so hard to create."

"Now is the time to consider adopting robust inclusionary housing policies that build permanently affordable housing stock and create inclusive communities."

Over 500 communities have developed inclusionary housing policies, the report explained.

"Economically diverse communities not only benefit low-income households; they enhance the lives of neighbors in market-rate housing as well," the report said. "To realize the full benefit of this approach, however, policies must be designed with care.

Key Findings:

• Contrary to popular perception, rapid construction of market rate housing actually fuels the need for more affordable housing by changing the character of neighborhoods.
• The most successful policymakers have built public support and worked closely with private developers in the crafting of inclusionary housing policies.
• Offering flexibility and incentives to developers can prevent negative economic impacts, but these tools need to be used judiciously.
• Inclusionary housing has been challenged in court, but programs can be designed to minimize legal risks.
• Follow-up, in the form of enforcement and stewardship, is critical. Some communities have created thousands of affordable homes, only to see them disappear after subsequent sales.

"In most cities, the need for affordable housing has never been more urgent," the report stated. "For many jurisdictions across the country, now is the time to consider adopting robust inclusionary housing policies that build permanently affordable housing stock and create inclusive communities."

Click here to view the full report.