The Problems with Inclusionary Housing

The San Francisco Chronicle ran a feature last Friday on the surprises that may be in store for a new homeowner in an “inclusionary housing” unit. Inclusionary housing is a popular form of affordable housing that is designed to integrate affordable housing into “regular” housing. For example, if a builder puts in a 10-unit apartment building, one or two of those units would be subsidized as affordable housing.

Of course, this means that, while a tenant or owner may pay less for rent or a mortgage than the rest of the building, they share the rest of the fees. Overall, we think inclusionary housing schemes are positive, but as this article shows, there may be a few surprises, and tenants and owners need to be prepared.