Changing zoning laws target affordability, with debt financing following
Rising home prices and rents are causing housing strains in cities across the country. In many places, there is a lack of affordable housing for many low- and even middle-income households.
There are fewer federal subsidies for affordable housing. So some cities propose local solutions that mandate or incentivize development through inclusionary zoning laws. Fannie Mae supports the efforts of state and local governments and wants to further encourage the development and preservation of affordable rental housing. The company has announced that it will offer lower pricing on debt financing for properties that have state or local regulatory agreements where at least 20 percent of the units have rents that are affordable to low-income families.
Inclusionary zoning laws vary widely across the nation. But they share a common goal of providing more affordable housing. In the accompanying infographic, we take a look at inclusionary zoning efforts in Seattle, Los Angeles, and New York City.