On Wednesday, October 8, 2025, City Council introduced the Affordable Housing Bonus Program (AHB) as an amendment by substitution to the existing proposed amendment. 902.04 Affordable Housing Bonus Program is a voluntary incentivized affordable housing program. On Wednesday, October 15, 2025, Pittsburgh residents and housing advocates provided testimony regarding the changes. Council discussed the changes, and voted on sending the Affordable Housing Bonus Program to Planning Commission.

A date for Planning Commission has not been scheduled.

The full text of the amendment by substitution can be found here.

Major incentives proposed by City Council for projects that comply with affordability requirements include:

• Eligibility to utilize 3 performance points, translating into 45 feet of additional building height and 3:1 additional Floor Area Ratio (FAR) allowance.

• Waiver of Residential Compatibility Standards for building height.

• Easing upper floor step-back requirements for projects in zoning districts that are already eligible to receive performance points.

• If an applicant opts into the AHB, projects must include same levels of affordability in current IZ-O (Bloomfield, Polish Hill, Oakland, and Lawrenceville). There are some differences in specific requirements, such as:

• Reduction of affordability term to 20 years (instead of current 35 years, or proposed 99 years)

• Removes automatic renewal of affordability term upon resale of property

• Allows tenants to remain until their household income reaches 100% Area Median Income (AMI)

• Landlords can raise rent proportionally once household income reaches 80% AMI

• Fee In Lieu - $25 per gross residential square foot - Fee contributions will go to an affordable housing payment fund
  • The affordable housing payment fund will be created by a separate bill. Clear prioritization of housing support for residents at or below 30% AMI, which is listed as the greatest area of need in the FY 2022 Housing Needs Assessment.
• The Department of City Planning is required to produce a report on the voluntary program with recommendations for improvements after two years.

Inclusionary Zoning (IZ) ensures neighborhoods can offer new housing units at a variety of price points by tying the construction of affordable housing to that of market-rate housing.

This zoning tool requires new residential developments to make a percentage of the units affordable to low- or moderate-income residents..

IZ is used in a variety of cities across the country and is identified in the city's 2022 Housing Needs Assessment as a strategy to protect and expand access to affordable homes in the city.

An Inclusionary Housing Overlay District (IZ-O) was permanently adopted in Lawrenceville in 2021 after two years as a temporary measure. As of 2023, the overlay district includes Bloomfield, Polish Hill, Lawrenceville, and portions of Oakland.

Inclusionary Zoning (IZ) was first utilized in Pittsburgh in Lawrenceville in 2019 and became a permanent overlay district in 2021. IZ has also expanded to Bloomfield, Polish Hill, and most of the Oakland neighborhoods.

• IZ is a zoning tool that requires new or renovated developments of 20+ units to include 10% of total units as affordable units.

• There are off-site options, where a developer can provide affordable units at a different site, but must increase affordable unit percentage to 12%.

• IZ ensures neighborhoods can offer new housing units at a variety of price points by tying the construction to that of market-rate housing.

• It was identified by Pittsburgh’s Affordable Housing Task Force to address the shortage of affordable dwelling units.

• “Affordable” housing rent or sale prices are tied to U.S. Department of Housing and Urban Development (HUD) household size and percentages of the Area Median Income (AMI). IZ rental units will be set aside for households earning no more than 50% of AMI; IZ for-sale units will be set aside for households earning no more than 80% AMI. Households eligible for IZ units do not pay more than 30% of household income on rent or mortgage, based on these AMI standards.