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.

What's Next for Inclusionary Zoning?

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%.

What are the benefits?

  • 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. IZ unit prices will not exceed 30% of income based on these AMI standards.

What benefits are provided to developers?

  • Incentives include increased density through allowing additional height and relaxing of other bulk requirements.
  • Developers are encouraged to use housing vouchers from the Housing Authority.
  • City Planning is also looking at administrative incentives, such as a concierge permitting service.

What are the proposed changes to the IZ, besides going city-wide?

  • Allowing fewer IZ units total, as long as the same number of bedrooms are provided, aiming to encourage family-sized units.
  • Clarifies that Dormitory, Fraternity and Sorority are exempted from IZ.
  • Rental units are permanently affordable.
  • Exploring options to provide equity in for-sale housing, allowing sellers to earn a profit while ensuring the home stays affordable for the next buyer.
  • Clarifies phased development requirements (every 10th unit must be an IZ unit)
  • Offering a suite of incentives for developers, both for-profit and non-profit, to help offset development costs

Where should the City allow off-site units? ​

Currently off-site units can be 0.25 miles away from the primary dwelling. The current proposed citywide draft would increase this distance to up to 0.5 miles away.  Should there be a wider allowance to areas with higher concentrations of employment, education, and other resources?
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