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

Summary and Rationale of Substantive Changes to Proposed Zoning Legislation Since Initial Release

  • Clarified language that development bonus height supersedes maximum number of stories for building height.
  • Updated cross-reference to Inclusionary Zoning section of the zoning code for multi-suite and multi-unit residential in the use standards for the Urban Center-Employment (UC-E) zoning district.
  • Amended Section 910.01 GT, Golden Triangle District to exempt conversions of existing buildings into multi-unit residential use that complies with Inclusionary Zoning requirements from Project Development Plan review process. Currently, only conversion projects where the cost of exterior renovation does not exceed $250,000 are exempt.
  • Added a provision for For-Sale housing that allows an increase in sale price of two percent annually.
  • Tied the off-site unit pricing to the Engineering News Record Building Cost Index for Pittsburgh.

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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Thank you for taking the time to offer your feedback on this suite of proposed amendments to the zoning code. The EngagePGH public comment period for these amendments has closed. If you are still interested in giving feedback, please consider providing testimony at the December 10th Planning Commission hearing at 2 PM. (Please note the hearing starts at 2 PM, but there are other items on the agenda.) You can view instructions on how to provide testimony at this link: https://www.pittsburghpa.gov/Business-Development/Planning/Commissions-and-Boards/Planning-Commission. If the Planning Commission approves these amendments, this EngagePGH will re-open for additional comments before City Council reviews them in early 2025.
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