Housing Supply Planning  |  Inclusionary Housing

This article provides an overview of inclusionary housing policy as a proven strategy to address the shortage of affordable housing with the potential for creating socially and economically integrated communities. It highlights the inclusionary housing policies of two of the largest U.S. cities with high housing costs—New York City, which has a voluntary incentive-based policy, and Chicago, which has a mandatory policy for all projects meeting certain thresholds. Both programs offer alternative options for developers—offsite construction in New York City and in-lieu fees in Chicago—that provide the flexibility needed to encourage developer participation but can also limit the integration of affordable units within higher-income neighborhoods.