The (non?)
State of
Mandatory
Inclusionary Zoning in Florida
APA-Florida Conference
Sept. 5, 2024
Elements of a typical Mandatory IZ policy
• Applicability. What types of development will trigger the IZ requirement? What exemptions might there be?
• Geographic scope. Which areas of the City/County will be subject to the IZ requirement.
• Affordability requirement. What percent or number of units must be affordable? How long must the units stay affordable and to what income bands?
• Incentives. What incentives can be used to fully offset all costs to the builder?
• Alternative compliance methods. In-lieu fee? Land in-lieu? Off-site construction?
• Program administration. How to ensure IZ units stay affordable?
• Penalties. What happens if a builder is out of compliance?
General Pros and Cons to Mandatory IZ
Pros
• Can ensure the provision of income-restricted affordable housing within new market rate development
• Opportunity to address exclusionary zoning barriers via incentives
• Create mixed-income communities and a dispersion of affordable units
Cons
• Without proper incentives, can be a “tax” on new development and discourage new housing supply
• Potential “cost offset” calculation challenges
• “Race to the bottom” – could entice industry to build in places without a mandatory IZ requirement
• Typically focused on 80-120% AMI households
State law requirements for mandatory IZ
• Passed in HB 7103 (2019)
• F.S. 125.01055(4)/166.04151(4) – A city or county must “provide incentives to fully offset all costs to the developer” associated with a mandatory IZ requirement. Such incentives may include:
• Allowing a density or intensity bonus
• Reducing or waiving fees
• Other regulatory or financial incentives
• Since 2019, only one jurisdiction (Miami-Dade) has enacted a new mandatory IZ policy.
• Palm Beach County continues to enforce its IZ requirement.
