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Incentives reduce financial impact of requirements. IH programs offer a variety of incentives to both voluntary and mandatory programs to encourage the production of affordable units, to offset the cost of providing affordable housing units, and to minimize potential lawsuits in the case of mandatory programs. Density bonuses are offered most frequently, with 382 out of 671 programs (57%) providing this incentive (Figure 6). In addition, 24% of programs offer other zoning variances, such as a reduction in site development standards, modification of architectural design requirements, and reduction in parking requirements. A less commonly used incentive includes waivers or the reduction of administrative fees. Other incentives include expedited processing, 400 57% 350 W concessions on the size and cost of finishes of affordable units, tax relief abatement, and direct public subsidy. Notably, 29% of programs do not offer any incentives, whereas 35% of programs— including some mandatory programs — offer more than one type of incentive. Programs in California generally offer incentives other than a density bonus. In Massachusetts, nearly half of programs, 48%, do not offer any incentives, but for those that do, density bonuses and other zoning variances are the most common (48% and 20%, respectively). In New Jersey, two in three programs, or about 68%, do not offer any incentives, and only about one in four programs, 27%, offer a density bonus. Other types of incentives are almost never offered in New Jersey. N l: 300 m i 250 CL 29°x6 w 200 y240 150 E 17% Z 100 13% 11% 50 6% 4% 3% 0 — ELM Density Otherzoning Fee reduction/ Expedited Unit Tax relief/ Direct Other None bonus variances waiver permitting concessions abatement subsidy/TIF U.S., excluding 0 California Massachusetts New Jersey CA, MA, & NJ Figure 6. Program count and percentage by incentive (n = 673, or 98% of all) Most programs have resale/rent restrictions: Almost all IH programs have some form of legal agreement in place to establish price/rent restrictions. These restrictions help keep inclusionary units affordable to targeted income -eligible groups. Legal agreements 0 can be in the form of deed restrictions, deed covenants, ground leases, development agreements, or affordable housing agreements. Overall, 99x/0 of 603 rental programs and 98x/0 of 612 for -sale programs forwhich data is available have legal agreements in place to preserve affordability long-term. This pattern is consistent across states and regions. 11