Inclusionary housing (IH) policies, also called mixed income policies, are getting considerable attention locally these days as housing markets grow stronger, making these policies more feasible. IH policies are in fact probably the most useful tool to create significant new affordability without using the usual federal and state subsidies. A number of suburban cities have used various forms of IH with success, and new policies have recently been adopted and are under active consideration in two suburban cities. While these policies may not be feasible in all cities, there are a number of cities where this approach does have promise, and there are others where improvements in current IH policies may make sense. One outcome of this project to date has been the development of a relationship with Cornerstone Partnership, a national consultant on IH policies, which has been providing assistance to a number of metro cities so far.

This is a good time for cities to be considering these issues. Metro area cities are beginning the process to plan for comprehensive plan updates due in 2018, which will include new housing elements which incorporate local plans, policies and programs to meet affordable housing production goals. To assist cities in updating these plans, the Metropolitan Council is currently developing an updated Local Planning Handbook which provides guidance to cities on all aspects of comprehensive plan updates, including affordable housing planning. The best practices referred to above are a natural fit to include in the Local Planning Handbook and we anticipate the Metropolitan Council will be reviewing this report with an eye to incorporating these practices. This report will also be used to collaborate with ULI Minnesota and the Regional Council of Mayors to update and expand the Housing Policy Toolbox as an additional “how to” resource for cities. This work will also inform affordable housing planning along transit corridors such as the Southwest LRT Corridor, and federal “New Starts” applications which now include a focus on local affordable housing efforts.