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7. Monitor implementation and compliance. A jurisdiction that chooses to adopt an inclusionary ordinance should be prepared to devote staff time and resources to ongoing monitoring and other administrative tasks needed to implement the ordinance effectively. In addition to ensuring that deed restrictions and covenants are recorded in time and that affordability is maintained for the required time period, it is important to ensure that units are occupied by households at the appro- priate income levels over time and that resale provisions are enforced. To maximize the program's effectiveness, a jurisdiction should adopt procedures that: + Establish whether the jurisdiction, property managers or a designated third party will be responsible for verifying tenant or homebuyer eligibility, income recertification and other occupancy factors. The best practice is to have the jurisdiction perform these tasks, although smaller jurisdictions may find it more cost-effective to pool resources with other neighboring jurisdictions and contract with a third party. Having property managers perform these tasks can prove overly burdensome due to the training required. + Ensure that a list of available units is up-to-date and readily accessible to households in the targeted income categories, and that the list is main- tained in a way that ensures compliance with fair -housing obligations. + Determine which qualified applicants (those meeting household -income restrictions) are chosen to rent or buy inclusionary units. + Recertify tenant income annually and determine when a tenant house- hold no longer qualifies for residency in the inclusionary unit. Some jurisdictions require that tenants move at the end of the lease term as soon as their household income exceeds the income limit for the unit. Others allow a tenant to remain until their household income exceeds the income limit by a set amount or percentage. The policy should be tied to the cost of market -rate housing in the com- munity and ensure that tenants are aware of requirements and receive adequate notice when they exceed income limits and must vacate the unit. To avoid displacement, consider allowing tenants to stay in a unit after their income exceeds allowable limits but convert that unit rent to market rate. The next comparable unit in the development that becomes vacant would then be offered as affordable to replace that"lost" unit. -� State how sales of for -sale units will be handled, including the referral of potential buyers and how funds derived from equity -sharing agreements will be used. Also, if the jurisdiction has an option to purchase a unit upon resale or at the end of the regulatory period, it should have a mechanism in place for handling those options. A strong monitoring program can have the added benefit of providing clear data about the success of the ordinance. This information can then be used to establish that the inclusionary requirement is not a constraint on devel- opment for purposes of the housing -element review process, and for potential future discussions about amendments to the inclusionary requirement. MORE RESOURCES a inclusionaryhousing.org Igc.org/advancing-inclusionary-housing-policy Other Value -Capture Tools to Produce Affordable Housing in Development While"inclusionary housing" usually refers to mandatory land -use policies designed to construct affordable housing within market -rate developments, other tools can also capture land value to produce needed affordable units. Voluntary inclusionary requirements California has a statewide, voluntary inclusionary method in the form of Density Bonus Law, with which all cities and counties must comply. Under this law, developers who include affordable units in their projects are entitled to a density increase and other incentives. Local governments can offer density increases above those specified in the state law in exchange for higher levels of affordability (units for households at the lower AMI levels). Linkage fees A linkage fee can be imposed on commercial and residential development to generate funds for affordable housing. The amount of this fee is set based on the community's need for affordable housing generated by new develop- ment. A growing number of California cities have adopted commercial linkage fees, including Los Angeles, Oakland, Sacramento and San Diego. While linkage fees can be a crucial revenue source,a linkage fee for affordable housing doesn't produce the other community -wide benefits of a traditional inclusionary requirement, such as economically integrated neighborhoods, and may also not be as economically valuable. Pairing a commercial linkage fee with a traditional inclusionary requirement is one way for a community to maximize the production of affordable housing while also advancing other important policy goals. Ad hoc inclusionary requirements Some jurisdictions have tried to negotiate inclusionary requirements on a project -by -project basis, often on larger projects. These ad hoc requirements are problematic from a legal standpoint and don't ensure that all new resi- dential development includes housing affordable at a range of income levels. �,� iV1EETING CALIFORNIA'S HOUSING NEEDS: BEST PRACTICES Oi; iNCLUSIONARY HOUSING