Inclusionary zoning (IZ) is municipal and county planning ordinances that require or provide incentives when a given percentage of units in a brand new housing growth be reasonably priced by individuals with low to average incomes. It will also be understood similar to impression charges as an "inclusionary tax" on market-rate units which raises the costs of latest non-value-controlled items in that growth and thereby diminishes the monetary incentive to create new housing. They argue inclusionary zoning constitutes an onerous land use regulation that exacerbates housing shortages. But other Inexpensive Housing advocates state the reverse is true, that Inclusionary Zoning can have the alternative effect and actually cut back inexpensive housing in a neighborhood.
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