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Inclusionary Zoning for Residential Developers

The DC Department of Housing and Community Development (DHCD) administers the District's Inclusionary Zoning (IZ) Program, which requires that 8 percent - 10 percent of the residential floor area be set-aside for affordable units in most:

  1. new residential development projects of 10 or more units; and
  2. rehabilitation projects that are creating 10 or more units in an existing building or addition.

IZ rent and purchase prices are governed by the Inclusionary Zoning Maximum Income, Rent and Purchase Price Schedule. Developers may charge up to the greater rent or purchase price from the schedule in effect on the date:

  1. the original Certificate of Inclusionary Zoning Compliance (CIZC) is approved by the DC Department of Consumer and Regulatory Affairs (DCRA) for the Inclusionary Development; or
  2. a Notice of Availability (NOA) is received by DHCD.

The IZ Process for Developers

During the IZ process, IZ developers must follow these steps:

  1. Pre-construction, to include:
  • Filing a CIZC application with DCRA before applying for building permits.
  • Executing an Inclusionary Development Covenant and sending it to DHCD.
  • Finalizing the building permit through DCRA once that agency approves the CIZC and DHCD receives the executed covenant.
  1. During construction, to include:
  • Applying for Certifying Entity status (or contracting with an existing Certifying Entity) to certify the income and household size of IZ households (for rental units only).
  • Attending DHCD’s monthly, two-hour IZ/ADU 101 Course.
  • Filing an NOA with DHCD (approximately 60 days before filing a Certificate of Occupancy application with DCRA).
  • Posting the units on www.dchousingsearch.org (within seven days of receiving the post-NOA letter from DHCD).
  • Filing a Certificate of Occupancy application with DCRA, and providing that agency with a copy of the recorded Inclusionary Development Covenant and any CIZC updates.
  1. The lottery process, to include:
  • Once DHCD has verified that all prior steps have been followed, it begins the first IZ lottery process and sends the IZ Development Owner or agent a list of selectees within three weeks of receipt of the NOA.
  • If IZ units are not filled in the first lottery and an IZ Development Owner intends to fill units using an alternate process, seeking prior written approval from DHCD.

These steps are explained in more detail in the Inclusionary Zoning Steps for Developers Fact Sheet (link).

Areas of Interest:

Inclusionary Zoning Steps for Developers Fact Sheet

IZ Developer Documentation

List of DHCD-contracted Community Based Organizations

Inclusionary Development Covenant

Affirmative Fair Housing Marketing Plan (AFHMP)

Annual Report Template

Certifying Entity Requirements

Certifying Entity Application Spreadsheet

Related Content:

Inclusionary Zoning Administrative Regulations

Inclusionary Zoning Maximum Income, Rent and Purchase Price Schedule

Affordable Dwelling Units

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