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Edina Housing Task Force <br />DRAFT March 2006 <br />Example of an Incluslonary zoning development In the <br />state of New York <br />units at below market rents or sales prices. The goal of inclusionary <br />zoning is to ensure that a portion of new housing units are affordable <br />and become a seamless part of the fabric of the community. <br />Edina has few development opportunities. On the one hand, this may <br />limit opportunities to create affordable housing through inclusionary <br />zoning; on the other hand, the Task Force believes we cannot afford <br />to miss the few opportunities we have. The Task Force recognizes <br />that building affordable housing can be very time-consuming and <br />costly for developers, often requiring the piecing together of multiple <br />funding sources. Affordable housing may also entail greater political <br />and financial risk than market -rate projects. The Task Force's re- <br />search suggests that the fairest inclusionary zoning policies provide <br />Incentives that offset the cost and serve as carrots, enticing develop- <br />ers to Include affordable units in their housing plans. Some possible <br />incentives include density bonuses, low interest loans funded through <br />a housing and redevelopment authority levy, tax increment financing, <br />and building fee waivers. Any inclusionary zoning policy in Edina <br />should be based on a thorough understanding of Edina's housing mar- <br />ket and development finance and should not become a hidden tax. <br />Unless the incluslonary housing policy is designed to elicit developer <br />cooperation, it is unlikely to be effective. <br />