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ATTACHMENT 4 Meeting California's Housing Needs: Practices Inclusionary Housing nelusionary housing is used in hundreds of communities across the country to create units that are affordable to lower-income households in new market -rate residential developments. More than 170 cities and counties in California have used inclusionary -housing policies to help address affordable -housing needs while advancing equitable -development goals. Inclusionary policies capture some of the value of rising real-estate prices to provide community benefits by using local land -use controls to ensure that much- needed affordable -housing units are produced along with market -rate units and that the limited supply of developable land is put to work in a way that serves households at all income levels. Inclusionary housing — also referred to as "inclusionary zoning"— is a flexible tool that can be tailored to local circumstances. There is no one "model" inclusionary -housing policy, but rather a number of best practices to consider when adopting or amending an ordinance. This factsheet explores the range of policy options to consider when designing a local inclusionary ordinance and highlights best practices that maximize community benefits and fulfill policy goals. An inclusionary -housing ordinance is one part of an equitable -development strategy, and should not be viewed as the sole way to address affordable -housing needs. In most communities, building the needed amount of housing for lower-income families will still require public subsidies and must be integrated with other strategies. Following a period of legal uncertainty around inclusionary ordinances, a 2015 Supreme Court decision armed city and county authority to impose inclusionary requirements based on local government's broad police powers. And passage of Assembly Bill 1505 in 2017 reinstated the authority to apply inclusionary policies for rental housing. Local IN Government Commission L—d—fo b,nbI, Communities ■ November 2018 Produced by Local Government Commission, Western Center on Law and Poverty and California Rural Legal Assistance Foundation, with funding from the Climate, Land Use, and Transportation program of the Resources Legacy Fund.