Inclusionary zoning policies are a popular tool for addressing affordable housing challenges and cities and counties are implementing such policies since 2000. But the structure and features of these policies  are different due to this it is suggested that the features of inclusionary zoning matter and need to be tailored to local market conditions. Inclusionary zoning requires developers who are creating market-rate housing to set aside a percentage of the housing to be sold or rented. Most common feature of inclusionary zoning policies is “in-lieu fees,” which developers may pay as an alternative to building onsite affordable units. It has three major goals. The one is to help local decisionmakers determine whether to include an in-lieu fee option in their inclusionary zoning ordinances and the other one  is to help local decisionmakers understand what variations of in-lieu fees exist and how to structure in-lieu fees. The last and more important goal is to create more mixed-income developments and increase affordable units in opportunity-rich neighborhoods.

The affordable units often do not have to be in the same location as the market-rate units. Many
jurisdictions provide the option to build the prescribed affordable units off-site. Developers either provide these off-site units directly by constructing them or indirectly by paying in-lieu fees to local housing trust funds. Off-site construction often occurs in neighborhoods where land costs are lower or where there is less opposition to new development. Off-site construction provides flexibility to developers and can increase the production of affordable housing unit.