Proposal
Brief summary
A mandatory requirement for developers to set aside 15–20% of units in new residential complexes for affordable housing (AMI ≤ 80%) in exchange for expedited permitting and tax incentives.
Proposal text
Introduce mandatory Inclusionary Zoning (IZ) requirements for all new residential projects of 10 or more units in municipalities with a population over 50,000 in Arizona. Specific parameters: 15% of units for development without incentives, 20% of units with expedited permitting. Target group — households with income ≤ 80% of Area Median Income. A 30-year rental/sale restriction. Compensating mechanisms: an expedited project approval process (30 days instead of 90), 10-year tax incentives, and access to a construction subsidy fund.
Arguments and positions
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@mchen_civic
Similar programs in Portland and Denver showed an 18–23% increase in affordable housing without a significant drop in overall development volume.
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@dpark_policy
Expedited permitting is a strong incentive. In pilot projects, developers preferred IZ precisely because of the time savings.
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@housing_skeptic
Furman Center research shows that strict IZ requirements can in some cases reduce overall construction volume.