On Nov. 2, 2023, City Council approved updates to Chapter 9-13 “Inclusionary Housing” including one amendment to Section 9-2-14, “Site Review” and updates to three definitions in Section 9-16-1, “General Definitions,” B.R.C. 1981. These updates will go into effect on Jan. 29, 2024. The delay is to accommodate updates to the IH Administrative Regulations, website, cash-in-lieu calculator and associated implementation policies and documents. View the updated Ordinance here.

The initial objective of this council priority was to encourage more permanently affordable middle-income housing in the city and make changes to the Inclusionary Housing program to increase efficiency and improve program outcomes. This was modified during the process to remove the middle-income housing priority and pivot to program design and related policies including how cash-in-lieu amounts are determined.

  1. Plan

  2. Design

  3. Implement

Project Overview

The 2022-2023 Inclusionary Housing (IH) update will analyze the program to identify opportunities to increase production of housing affordable to middle income households and incorporate best practices for the program.

At the City Council meeting on Sep. 2, 2023, staff provided an update on the project and requested input on potential code changes. At the meeting council members asked clarifying questions of staff and the project consultant on the financial assumptions and analysis. They voiced support for a Nexus Study to support a potential linkage fee on new single-family homes and large additions (this item is related to but not addressed in the IH program.

The majority of the conversation was around the code changes intended to increase the feasibility of middle-income homeownership units produced through the IH program. There was a policy discussion around the tradeoffs between encouraging on-site middle-income units and the CIL that would be paid on a project. Some felt that the proposal to reduce the on-site requirements on for-sale projects was directly pitted against the provision of additional housing since CIL can be used to provide at least double the number of units elsewhere in the city. Most of the members of the council were not comfortable with any reduction in CIL contributions. On a straw poll only three members supported the proposal to make changes to support on-site middle-income housing. Thus, council directed staff to remove the proposal to reduce the for-sale on-site requirement and to increase the unit price requirements. The majority of the council were not comfortable with the values tradeoff necessary to encourage these types of housing units.

Staff incorporated these changes into the IH ordinance.


Adopted in 2000, the Inclusionary Housing Program has had two major updates: the first in 2009 and the second in 2018. The 2018 update added a new requirement for 5% middle-income housing in addition to the existing 20% requirement for low- and moderate-income housing. The 2018 update also included numerous incentives for developers to build the affordable ownership housing on-site as part of the development. Due to numerous market and regulatory factors, on-site and ownership housing outcomes remain rare. This update will explore these market and regulatory factors and make recommendations for changes to the program to achieve more middle-income outcomes and incorporate best practices.

Project Timeline

  • Oct. 27, 2022: Study session with council. Watch the study session here.
  • Jan. 31, 2023: Study session with Planning Board, Housing Advisory Board, and Technical Advisory Group.
  • Jan. - July 2023: Consultant market analysis, best practices, feasibility analysis and policy recommendations; staff review of policy alternatives and potential code amendments.
  • July - Aug. 2023: Receive final documents from consultant; staff refine updates and policy options; obtain feedback from advisory boards and stakeholders (e.g., property owners, professionals, planning staff, other city staff) on policy alternatives and potential code amendments.
  • August 2023: Completed draft of consultant best practices and feasibility analysis report.
  • Sept. 5, 2023: Project update and draft policy options to 9-13 B.R.C, Inclusionary Housing, for Planning Board feedback. View memo here.
  • Sept. 7, 2023: Project update and draft policy options to 9-13 B.R.C, Inclusionary Housing, for City Council feedback. View memo here.
  • Sept. 26: Planning Board public hearing and recommendation to council on proposed ordinance.
  • Sept. 27: Housing Advisory Board public hearing and recommendation to council on proposed ordinance.
  • Oct. 19: First reading of ordinance before City Council. View Oct. 19 council materials here.
  • Nov. 2: Second reading of ordinance and public hearing before City Council.
  • Jan. 29, 2024: Effective date of new ordinance and related regulations.