Inclusionary Housing: A Good Solution to Create Affordable Housing

Date Published: 
Thu, 08/31/2006

Vinit Mukhija, Lara Regus and Sara Slovin. UCLA School of Public Affairs. August 31, 2006.

This research explores the effect of inclusionary housing requirements on the market.  The Researchers evaluated the performance of the seventeen inclusionary housing cities in meeting their regional housing needs as assessed by the Southern California Association of Governments (SCAG).

Almost all cities have issued building permits in excess of their assessed need. There are three exceptions: one city with a demanding inclusionary program, the second with a less demanding program, and the third with a voluntary program. It is not clear, however, that their inability to meet the Regional Housing Needs Assessments (RHNA) is due to the inclusionary housing requirement.

Thier evaluations suggest that most of the criticisms against inclusionary housing and the concerns about its negative effects are exaggerated and unsubstantiated. There is some evidence, and economic logic, to suggest that punitive and excessively demanding inclusionary housing programs should be avoided. At the other extreme, weak requirements, including voluntary programs, are likely to be ineffective. Carefully crafted inclusionary housing programs, however, can be key contributors to the supply of affordable housing, and merit support in Los Angeles.