As with most things, the devils (and the angels) are in the details. Inclusionary Zoning can be implemented to compensate developers for the lost-profit (and higher regulatory costs) associated with mandatory affordable units — or not.
Typically, inclusionary zoning (IZ) requirements kick in on developments that exceed a certain number of units. If the IZ requirements are onerous and they are applied to projects that exceed 10 units, one might find that suddenly there are more projects for 9 units. If the nature of the IZ requirements causes developers to restrict the number of units that they build, the end result might be counter-productive. So, pay attention to the details of the IZ program and do the math.
As with most things, the devils (and the angels) are in the details. Inclusionary Zoning can be implemented to compensate developers for the lost-profit (and higher regulatory costs) associated with mandatory affordable units — or not.
Typically, inclusionary zoning (IZ) requirements kick in on developments that exceed a certain number of units. If the IZ requirements are onerous and they are applied to projects that exceed 10 units, one might find that suddenly there are more projects for 9 units. If the nature of the IZ requirements causes developers to restrict the number of units that they build, the end result might be counter-productive. So, pay attention to the details of the IZ program and do the math.
Rick, Absolutely the details of a policy are important. Regarding whether they tend to slow development, there is less of that than you might think (see http://www.shelterforce.org/article/4169/do_inclusionary_zoning_requirements_halt_development/, the companion to the piece above) but it certainly could happen if policies were made without care.