Encourage cities and counties to permit more multi-family and higher density housing
Action
States should provide state aid and revise the state's planning laws to encourage local governments to permit more construction of higher density and multi-family housing near transit, jobs, retail, and other centers of the community.
Local zoning codes control the look, location, and supply of housing — including the location and number of apartments, duplexes, townhouses, and other higher density housing that can be built in a given jurisdiction. Most local zoning regulations limit or prohibit higher density development. Even where such development is allowed, it is often segregated from other housing types and isolated from schools, jobs, shops and other centers of community.
Overcoming local regulatory barriers to higher density and multi-family development is an important way to meet current housing needs and to increase housing choices statewide.
Process
State planning enabling legislation usually establishes the topics or areas that communities must address when developing their comprehensive plans. Only 25 states currently have planning laws that require localities to indicate how their comprehensive plan will meet their citizens' housing needs.
As a first step toward getting cities and counties to increase housing choices, states should update their enabling legislation to require localities to plan for housing, and to develop strategies and policies that meet a variety of housing needs and that expand housing choices. As part of this process, local governments should be required to determine whether they have the capacity to meet housing needs for their jurisdiction's projected population size and mix.
States can also provide incentives that encourage local governments to change their development regulations and to increase housing choice. Incentives could include increased education funding for every additional unit of multi-family housing that is permitted or built in a community (see Policy 4, Increase State share of education costs in communities that are increasing density, in the Department of Education section).
States can require local governments to allow for a range of housing in their comprehensive plans and to zone for diverse housing in order to be eligible for state housing funds. This would require state review or certification of local plans and zoning regulations.
States can also give priority in the allocation of housing funds (such as HOME Investment Partnership Program and Community Development Block Grants) and other discretionary funding, including economic development funds, to communities that permit higher density or multi-family housing development. Changing the process of allocating federal funds would require updating the state housing agency's consolidated plan, because the U.S. Department of Housing and Urban Development requires states to develop consolidated housing plans that outline how they will spend federal dollars. Changing the criteria for allocation of state discretionary funding would not require a change in this plan.
Examples
- Massachusetts' Chapter 40R and 40S
The Massachusetts Legislature adopted a smart growth zoning statute (Chapter 40R) that provides incentives for local governments to establish smart growth zoning districts. Smart growth zoning districts must fulfill certain density, affordability and location requirements. Communities receive some incentives upon making zoning changes and receive further incentives based upon building permits issued, which ensures that the funding is supporting actual implementation, as well as planning and zoning.
The legislature also enacted Chapter 40S, which created a Smart Growth School Cost Reimbursement Fund to compensate schools for additional costs incurred due to more compact development in the smart growth zoning districts.
— Massachusetts’ Chapters 40R and 40S - Oregon's statewide housing goals
To be eligible for state assistance, localities in Oregon must meet statewide housing goals. The Oregon Housing and Community Services Department administers state assistance in the form of grants and tax credits to individuals, lending institutions, developers, and nonprofit organizations. Applicants are eligible for state funds if the Oregon Department of Land Conservation and Development certifies their plans as being in accordance with state planning goals.
— Oregon Department of Land Conservation and Development
— Oregon Housing and Community Services
