I was going to do a blog entry about the IZ myths, or lies, or spin that I have been hearing and I was starting to collect various sources of these myths when I ran across this letter from December 23, 2005 in the Wisconsin State Journal
Inclusionary zoning an illusion
Inclusionary zoning. On the surface it sounds great — “create affordable housing.” The reality is that it is having the opposite effect. Home prices are being artificially raised to subsidize IZ units.
Madisonians are being bamboozled and hoodwinked into thinking IZ is helping the underprivileged. With minimal investigation you will find that this ordinance has been a complete failure.
IZ was supposed to mix income levels within neighborhoods. This has not been accomplished. What it has done is cause people to pay artificially higher home prices.
Take a look at Lake Point Commons on Broadway. The density for the project was allowed because of the number of IZ units being proposed. Dismal sales (because of IZ) have made Phase 2 of this project difficult.
There are many layers to this ordinance that need to be explored and reported.
— Gabe Albrecht, Madison
And I figured this was a good enough place to start . . .
Myth, Lie, Spin #1 – The goal of inclusionary zoning is to “create affordable housing.”
Well, close, but not quite. The goal of inclusionary zoning is to create a range of housing options in every neighborhood so that kids can learn together because when we have to high of a concentration of low-income kids in schools, they don’t do as well as when their classmates are of various economic backgrounds. As David Rusk says, classmates count. In fact, the ordinance says the goal of inclusionary zoning is as follows:
(a) Statement of Purpose. The purpose of this ordinance is to further the availability of the full range of housing choices for families of all income levels in all areas of the City of Madison. A full range of housing options promotes diverse and thriving neighborhoods, schools, and communities. It also aids the recruitment and retention of local businesses and their workforce, which are essential to the economic welfare of the City. This purpose can be accomplished by providing dwelling units for families with annual incomes less than the area median income.
Myth, Lie, Spin #2 – Home prices are being artificially raised to subsidize IZ units.
Oh yeah? I keep hearing this, but I’m wondering, where’s the data to prove this? In fact, if they are coming to this conclusion, it likely means that they are not recognizing the value of the density bonuses that developers are receiving. People say this as if it is a fact. I’d like to see the facts.
Myth, Lie, Spin #3 -Madisonians are being bamboozled and hoodwinked into thinking IZ is helping the underprivileged.
Just the opposite. IZ isn’t helping the underprivileged. It was designed to help police officers, firefighters and teachers – hardly the underprivileged. Homeowners at 80% of the Area Median Income (AMI) or lower. 60% AMI or lower for renters. Income charts are available on the City’s website.
Myth, Lie, Spin #4 – With minimal investigation you will find that this ordinance has been a complete failure.
What is this based on? Truly a minimal, inadequate investigation. The city council asked staff to prepare a report to the council on various questions people had about inclusionary zoning. The report is overdue, but also, much of the information that is necessary isn’t yet available. Staff expect to have a draft of the report available in the next week or so. It’s a little soon to call IZ a complete failure without a proper investigation.
Myth, Lie, Spin #5 – IZ was supposed to mix income levels within neighborhoods. This has not been accomplished.
Of course not, there are only about 20 IZ homes built at the moment and it will take years to accomplish truly mixed income neighborhoods. This ordinance won’t fix years of failure to build inclusive neighborhoods overnight.
There was one thing that the writer said that I agree with, “There are many layers to this ordinance that need to be explored and reported.” Let’s get the report, fix the obvious problem with the ordinance, the equity model, and give it a chance to work before declaring IZ a failure.
Note: I probably should know, but I don’t know who Gabe is. All I could find on the internet was his non-existent blog call “Buy Madison Homes”. No insult intended to Gabe, in fact, I’d like to meet him and find out where he got his information to write his letter as it clearly is a list of talking points from somewhere.
