American Institute of Certified Planners (AICP) Practice Exam

An ordinance requiring the set-aside of land or dollars to construct affordable housing within a subdivision is referred to as?

1. Fees in lieu

2. Inclusionary

3. Exclusionary

4. Incentive

The correct answer is: Inclusionary

An ordinance requiring the set-aside of land or dollars to construct affordable housing within a subdivision is known as inclusionary zoning. This approach mandates that a certain percentage of new housing developments be set aside for affordable housing options, ensuring that these units are integrated within market-rate developments. The goal is to promote a diverse range of housing choices and to prevent the segregation of affordable housing from higher-income areas. Inclusionary zoning recognizes the need for affordable housing in communities and seeks to create mixed-income neighborhoods. By requiring developers to contribute to the creation of affordable units, this ordinance aims to balance housing options and address issues such as housing shortages and economic segregation. The other options, while relevant to housing policies, do not accurately describe this particular ordinance. Fees in lieu relates to monetary contributions developers might make when they cannot meet the affordable housing requirement on-site. Exclusionary zoning refers to practices that effectively keep certain populations from certain areas, often by implementing restrictive zoning laws. Incentive housing typically offers developers bonuses or other perks for including affordable units but does not establish a mandatory set-aside requirement.