Families displaced by the recession and the rising number of homeless have elevated concerns about affordable housing in Charlotte. Some civic organizations and nonprofits have resumed calls for mandatory inclusionary zoning, a controversial policy that forces developers to reserve a certain number of units in any new project for low-income residents.
Under inclusionary zoning, developers often will make up for the lower rents and home prices they charge low-income residents by boosting the amount tenants and buyers with higher incomes who don’t qualify for public assistance must pay. The system allows people receiving subsidies to reside in nicer neighborhoods and avoid the stigma of living in “low-income” housing areas. For those who must subsidize their neighbors — often without their knowledge — it can seem unfair.
“For Charlotte and other communities, (inclusionary zoning) provides the choices and opportunities … for all different types of housing types and price points, so people can have the choices and opportunities that they really need … to be successful,” said Mary Klenz, a member of the Mixed Income Housing Coalition and the League of Women Voters of Charlotte- Mecklenburg. This year MIHC has asked the Charlotte City Council, the Mecklenburg Board of County Commissioners, and other officials to adopt inclusionary zoning in the city.
“I think (people are) receptive to hearing about it,” Klenz said. “Now how that’s going to translate, and how long that’s going to take to make its way into the public policy arena, it (will) take a while. But … I think it’s beginning to make a lot of good sense to policymakers and elected officials.”
But some question whether inclusionary zoning, particularly in a lackluster market like Charlotte’s, will actually help those most in need. The city expects a housing shortage in the next three years, with estimates of an additional 17,000 units needed for those making less than $16,000 per year, according to a city study, cited in The Charlotte Observer.
Patricia Garrett, president of the Charlotte-Mecklenburg Housing Partnership, explained that the problem has been years in the making. “We haven’t (built) many shelters or transitional places, and it’s kind of become the perfect storm — we’ve not done a lot of production for special populations, so now we have that combined with the fact that people are losing their homes or apartments,” she said.
Garrett is concerned that inclusionary zoning won’t help the poorest of the poor. “I’m not sure (it) will solve the problem,” she said. For Michael Hinshaw, president of the Homebuilders Association of Charlotte and of Hinshaw Properties, a private developer, affordability in Charlotte is not relegated only to the lowest income demographic.
Three city policies are driving up the cost of housing, he says. The city’s regulations governing stormwater, urban street design, and trees each add significant costs to new construction and seem to contradict each other. And since Charlotte has no natural land barriers to discourage people from moving to a neighboring county, he said, the city will soon find its policies driving people out — and home prices up.
The bad economy also would make it difficult to sell policies like inclusionary zoning in any municipality.
“I don’t think that’s a very effective long-term solution to affordable housing,” he said. “Frankly, inexpensive housing has been one of the reasons that Charlotte has been so successful, and policies raising the cost of housing are very frustrating.”
An April 2008 John Locke Foundation study cited the ineffectiveness of inclusionary zoning in helping low-income residents — and the swiftness of its impact on middle-income homeowners. In communities with inclusionary zoning, “builders will take on smaller projects, or they’ll simply focus on neighboring communities that have no price restrictions,” said Michael Sanera, research director and local government analyst for JLF. The policy of inclusionary zoning could face some legal challenges as well, as it could conflict with North Carolina laws against rent control.
In the meantime, Charlotte is trying to address its low-income housing shortage through some new projects.
Earlier this year, nine multifamily projects were approved for construction or rehabilitation. One of these projects, called Savanna Woods, is proposed to be located in an area where less than 50 percent of residents are homeowners.
This would appear to violate a city policy designed to avoid low-income density, but the city is requesting a waiver of the policy for the project — to the chagrin of some residents. Additionally, Charlotte will see almost $2 million in federal stimulus money for the express purpose of addressing homelessness related to the slumping economy.
Colleen Calvani is a contributor to Carolina Journal.