The Inclusionary Housing Ordinance supports the development of affordable housing. It is part of the Housing Element included in the General Plan.

The Inclusionary Housing Ordinance requires new residential projects to set aside a percentage of units for affordable housing. Projects may also satisfy the requirement with a payment of In-Lieu fees made towards affordable housing.

The fees generated by this program are deposited in the City’s Housing Funds, to provide assistance for production, acquisition of at-risk units, or rehabilitation of affordable housing.

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Benefits of an Inclusionary Housing Ordinance

Supports the local economy and inclusive communities

The Inclusionary Housing Ordinance provides clear standards and monitoring to ensure that affordable housing will be built. It requires that affordable units be built integrated with market-rate housing.

The ordinance helps Walnut Creek attract and retain a diverse range of workers to support the local economy. This provides more housing options and increases economic diversity. The ordinance is a strong tool for the City of Walnut Creek to assist its lower income population, particularly, households under 25 years of age and over 75 years of age, in obtaining affordable rental or ownership units.

Developer certainty 

The Inclusionary Housing Ordinance provides the greatest certainty for developers, because it allows the developer to incorporate all requirements before they submit their development application. It also saves time in the entitlement process, by eliminating back and forth negotiations. It also helps developers to negotiate their land purchases with an understanding of the City’s requirements for the project. 

Legally defensible 

The Inclusionary Housing Ordinance helps protect all developments from a legal attack under the takings clause of the state and federal constitutions.

It enables cities to conform to State Housing Element law by showing that standards will be consistently applied, and showing requirements will result in an increase of affordable housing. State law requires that each city and county in California prepare a Housing Element to provide a strategy to meet their housing needs, as projected by the Association of Bay Area Governments. The State has encouraged jurisdictions to adopt inclusionary zoning ordinances to help cities meet their goals.

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Resources

• Inclusionary Ordinance and definitions
• In-Lieu Fee Resolution