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Is Inclusionary Zoning Inclusionary? a Guide for Practitioners

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Is Inclusionary Zoning Inclusionary? a Guide for Practitioners Environment, Energy, and Economic Development A RAND INFRASTRUCTURE, SAFETY, AND ENVIRONMENT PROGRAM CHILDREN AND FAMILIES The RAND Corporation is a nonprofit institution that helps improve policy and EDUCATION AND THE ARTS decisionmaking through research and analysis. ENERGY AND ENVIRONMENT HEALTH AND HEALTH CARE This electronic document was made available from www.rand.org as a public service INFRASTRUCTURE AND of the RAND Corporation. TRANSPORTATION INTERNATIONAL AFFAIRS LAW AND BUSINESS Skip all front matter: Jump to Page 16 NATIONAL SECURITY POPULATION AND AGING PUBLIC SAFETY Support RAND SCIENCE AND TECHNOLOGY Browse Reports & Bookstore TERRORISM AND Make a charitable contribution HOMELAND SECURITY For More Information Visit RAND at www.rand.org Explore the RAND Environment, Energy, and Economic Development Program View document details Limited Electronic Distribution Rights This document and trademark(s) contained herein are protected by law as indicated in a notice appearing later in this work. This electronic representation of RAND intellectual property is provided for non- commercial use only. Unauthorized posting of RAND electronic documents to a non-RAND website is prohibited. RAND electronic documents are protected under copyright law. Permission is required from RAND to reproduce, or reuse in another form, any of our research documents for commercial use. For information on reprint and linking permissions, please see RAND Permissions. This product is part of the RAND Corporation technical report series. Reports may include research findings on a specific topic that is limited in scope; present discussions of the methodology employed in research; provide literature reviews, survey instru- ments, modeling exercises, guidelines for practitioners and research professionals, and supporting documentation; or deliver preliminary findings. All RAND reports un- dergo rigorous peer review to ensure that they meet high standards for research quality and objectivity. Is Inclusionary Zoning Inclusionary? Information and Guidance for Practitioners for Guidance and Information Inclusionary? InclusionaryIs Zoning R HEADQUARTERS CAMPUS 1776 MAIN StrEET, P.O. BOX 2138 TECHNICAL REPORT Santa MonIca, CA 90407-2138 OFFICES SANTA MONICA, CA WASHINGTON, DC PITTSBURGH, PA NEW ORLEANS, LA/JACKSON, MS Is Inclusionary Zoning Inclusionary? BOSTON, MA DOHA, QA ABU DHABI, AE CAMBRIDGE, UK A Guide for Practitioners BRUSSELS, BE • • • www.rand.org Heather L. Schwartz Liisa Ecola Kristin J. Leuschner Aaron Kofner Schwartz et al. OBJECTIVE ANALYSIS. C O R P O R A T I O N EFFECTIVE SOLUTIONS. RAND publications are available at $00.00 www.rand.org This product is part of the RAND Corporation technical report series. RAND technical reports are used to communicate research findings and policy recommendations on a specific topic for a targeted audience. All RAND reports undergo R rigorous peer review to ensure high standards for research quality and objectivity. Environment, Energy, and Economic Development A RAND INFRASTRUCTURE, SAFETY, AND ENVIRONMENT PROGRAM TR-1231- This report was sponsored by the John D. and Catherine T. MacArthur Foundation and was conducted in the Environment, Energy, and Economic Development Program within RAND Infrastructure, Safety, and Environment, a division of the RAND Corporation. The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. R® is a registered trademark. © Copyright 2012 RAND Corporation Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND documents to a non-RAND website is prohibited. RAND documents are protected under copyright law. For information on reprint and linking permissions, please visit the RAND permissions page (http://www.rand.org/publications/ permissions.html). Published 2012 by the RAND Corporation 1776 Main Street, P.O. Box 2138, Santa Monica, CA 90407-2138 1200 South Hayes Street, Arlington, VA 22202-5050 4570 Fifth Avenue, Suite 600, Pittsburgh, PA 15213-2665 RAND URL: http://www.rand.org To order RAND documents or to obtain additional information, contact Distribution Services: Telephone: (310) 451-7002; Fax: (310) 451-6915; Email: [email protected] Preface Inclusionary zoning (IZ) has become an increasingly popular tool for providing affordable housing in an economically integrative manner. IZ policies typically require developers to set aside a proportion of units in market-rate residential developments to be made affordable for lower-income households in exchange for development rights or zoning variances. These poli- cies are considered “inclusionary” because they are intended to allow lower- and moderate- income households to buy or rent property in middle- and upper-income communities. Although IZ policies have been implemented in many states and localities, little research has been conducted to determine whether these policies are having the intended inclusionary effect for IZ recipients. This report examines IZ programs across 11 jurisdictions to determine whether IZ poli- cies succeed in providing its recipients access to low-poverty neighborhoods and homes that are residentially assigned to high-performing schools. This would be notable, since a recent national study reveals that exclusionary zoning yielding low-density housing increases the like- lihood that low-income households are priced out of homes that are located in neighborhoods with high-scoring schools (Rothwell, 2012). The purpose of this study is also to highlight the key features of IZ policies and the ways in which they might affect program success. Detailed summaries of each of the IZ programs and maps of IZ locations are provided in the appendixes. The report should be of interest to city planners and municipal officials from housing and education departments as they consider policies to provide affordable housing within their jurisdictions and means to give children from families earning lower incomes access to low- poverty or high-performing schools. This research was conducted in the Environment, Energy, and Economic Development Program (EEED) within RAND Infrastructure, Safety, and Environment (ISE). The mission of RAND Infrastructure, Safety, and Environment is to improve the development, operation, use, and protection of society’s essential physical assets and natural resources and to enhance the related social assets of safety and security of individuals in transit and in their workplaces and communities. The EEED research portfolio addresses environmental quality and regula- tion, energy resources and systems, water resources and systems, climate, natural hazards and disasters, and economic development, both domestically and internationally. EEED research is conducted for government, foundations, and the private sector. Questions or comments about this report should be sent to the project leader, Heather Schwartz ([email protected]). Information about the Environment, Energy, and Economic Development Program is available online (http://www.rand.org/ise/environ). Inqui- ries about EEED projects should be sent to the director at the following address: iii iv Is Inclusionary Zoning Inclusionary? Keith Crane, Director Environment, Energy, and Economic Development Program, ISE RAND Corporation 1200 South Hayes Street Arlington, Virginia 22202-5050 703-413-1100, x5520 [email protected] Contents Preface ........................................................................................................... iii Figures ........................................................................................................... vii Tables ............................................................................................................ ix Summary ........................................................................................................ xi Acknowledgments ............................................................................................. xv Abbreviations ................................................................................................. xvii CHAPTER ONE Introduction ..................................................................................................... 1 Approach of This Study ......................................................................................... 3 Organization of This Report .................................................................................... 6 CHAPTER TWO Benefits and Limitations of Inclusionary Zoning Policies and the Households They Serve...... 7 Potential Benefits and Limitations of IZ Policies ............................................................. 7 Households the IZ Programs Serve ........................................................................... 11 Characteristics of IZ Neighborhoods ......................................................................... 13 Assignment of IZ Units to High-Performing Schools ...................................................... 17 Summary ......................................................................................................... 19 CHAPTER THREE Design Options for Inclusionary Zoning Programs .................................................... 21 Populations Eligible to Participate in IZ Programs .......................................................
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