Inclusionary housing has been a successful tool for the creation of affordable housing units and has been in practice in the State of California and elsewhere since the 1970s. Inclusionary housing typically requires developers to set aside units and sell them for below market rate. These programs also help to reduce segregation of affordable and market-rate housing.
State law requires local governments to identify and plan for existing and projected housing needs of all economic segments of the community within their Housing Elements. The City’s Housing Element identified an Implementation Measure to require residential projects of ten or more units to develop an Affordable Housing Plan requiring ten percent of those units as affordable to very low- and low-income households. In order to fully implement the City’s Housing Element, the City adopted an Inclusionary Housing Ordinance in July 2016 detailing the process and the standards for the City and developers to follow. The Inclusionary Housing Ordinance requires at least ten percent of the units as affordable and to either provide the units onsite, offsite, or to pay an in-lieu fee. The Inclusionary Housing Ordinance is only applicable to home ownership units and does not apply to rental units.