Housing trust funds (HTF) can support construction or rehabilitation of owner or renter homes, including creating Accessory Dwelling Units. HTFs can be used to encourage young families to move in and renovate homes through grants, low-interest loans, or loan forgiveness over time. Communities may work with state, regional, and county housing trust funds, or may choose to develop a local housing trust fund. Funding sources for HTFs include local options taxes, a percentage of property tax revenue, fund balances, bond proceeds, general fund appropriations, and dedicated fees.
Requires housing units torn down by developers to be replaced with a specified percentage of new housing units to maintain housing stock within a community. In some areas developers have the option of paying a fee in lieu of constructing new housing units, which may be placed in a housing trust fund.
Allow for reductions or waivers of typical public works requirements (such as widening roads, improving sidewalks, expanding sewer capacity, or creating recreational facilities) for development of affordable housing
Reducing or waiving impact fees for affordable housing projects. Impact fees are important for municipalities because they require developers to pay their fair share of the costs of providing public services to the new development. However, impact fees can be an additional barrier to developing affordable housing projects.
Allowing permit fee reductions, waivers, or deferments for affordable housing projects.
Streamlining the process of receiving permits for desirable housing projects. Can include leveraging technology to facilitate the permitting process and implementing shorter review timelines for permit approval.
Allowing building proposals that fit within the specifications of local zoning policies to proceed "as of right", without additional review. Developers still need to secure a building permit and fulfill customary regulatory requirements, but the approvals process is generally less contentious and/or time-consuming than the process for proposals that require an exception from current zoning regulations.
Cluster developments are a permitted use in which density regulations are determined for an entire specified area instead of a lot-by-lot basis, allowing more smaller units to be constructed in the area. Cluster development allows the developer greater flexibility in designing projects but preserves the overall density in an area. This can naturally encourage the construction of low-cost and therefore more affordable housing units. Municipalities can also require affordable housing to be developed as a condition of approval for adjusting density requirements.
PUDs are municipal regulations that allow developers exemptions from certain zoning requirements in exchange for developing properties with desirable criteria. Some municipalities include PUDs within overlay districts. By allowing greater flexibility in the configuration of buildings on a site or allowing mixed usage of a site, a municipality can encourage more creative and efficient use of a space than is typically allowed in local zoning laws. It can also result in lower infrastructure costs and better coordination of development across an area.
Areas created to promote certain types of development. Municipalities create separate zoning rules for the overlay district to encourage the intended type of development in addition to pre-existing zoning rules for the larger area. Many areas have overlay districts to protect natural resources or historic neighborhoods, but they can also be used to encourage affordable housing.