The Ralph and Goldy Lewis Center for Regional Policy Studies

Los Angeles is the only major urban region in California without an Inclusionary Housing Ordinance (IHO). There is however, a growing grassroots movement to adopt an IHO at the city level. Inclusionary housing is a response by localities to the severe shortage of affordable housing throughout the state. IHOs affect new single and multi-family housing developments. Under the ordinance, a residential developer is required to allocate a certain percentage (typically 10% to 20%) of the new units as affordable to provide them to very-low, low and/or moderate income households. Despite the fact that California has more IHOs than any other state, the affordable housing stock continues to lag behind the ever-increasing housing demand. Since so many economic and political factors impact the development of inclusionary housing, the number of units produced grows at a slow rate. Consequently, it is extremely important that jurisdictions take special measures to monitor inclusionary housing and ensure compliance with both the intent and terms of an ordinance. Because inclusionary housing is a valuable component of any locality’s affordable housing stock, the design and implementation of monitoring regulations are critical factors in the effectiveness of any inclusionary program.