“This is the dirty secret of California’s Density Bonus law…”

Inclusionary zoning – everyone wants to talk about it! Dave Alpert at GGW started the discussion with his pro-IZ piece, and hot on the heels of Emily’s post earlier today, I got an email from a California developer who wishes to remain anonymous: This is the dirty secret of California’s Density Bonus law: it’s primarily a way to give 100% affordable projects easy land use concessions. It has barely any effect on market-rate projects, despite all the attention it gets from affordable housing advocates. Incidentally, the number of affordable units in market-rate density bonus projects – 212 – over the total number of units produced in L.A. during the same period – 53,000 – is 0.4%. Vanishingly few. The number of units produced exclusively with the parking concession – the 6 condo conversion units – is 0.01%. Statistically the same as zero. If people really want to get affordable housing built, they would do much better to find more direct ways to pay for it – like through property tax revenues or other sources where everybody pays. Trying to pay for affordable units by constraining market-rate development and trying to the capture value that is “created” when those constraints are released is not only a pretty ineffective way to create affordable housing, it’s an excellent way to make market rate housing more expensive. I’ve got some thoughts of my own on inclusionary zoning and the anti-density sentiment it can engender among some affordable housing activists, which I’ll hopefully post tomorrow.