The Inclusionary Housing Program was created through the City's Inclusionary Zoning Ordinance (PDF), which requires new residential development projects (including condominium conversions) to set-aside at least 15 percent of their units for moderate-, low-, and very low-income households.
A new for-sale housing development with two to six total units has the option of providing one affordable unit for moderate-income households, or pay an in-lieu fee defined in the ordinance. The in-lieu fee does not apply to rental developments.
New for-sale housing developments and condominium conversions involving less than two units and new rental housing developments with less than four units are exempt from this ordinance.