Inclusionary Zoning

On Tuesday, February 16, the San Rafael City Council took a final vote on updating its inclusionary zoning ordinance. In late 2020, City staff recommended that San Rafael decrease from 20% to 10% the percentage of units market rate developers are required to set aside as “affordable.” Research by city staff suggested that the 20% inclusionary requirement was too high and was discouraging residential development. MEHC proposed a compromise measure to reduce the proportion to 15%. We have also proposed that developers be given fewer options for satisfying their affordable housing obligation by paying in-lieu fees to the City’s affordable housing fund, rather than actually building affordable units on-site. The in-lieu fee option is popular among developers, but has a tendency to exacerbate Marin’s already-high degree of housing segregation, as, historically, affordable developments often house a higher proportion of people of color than market rate developments.