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Inclusionary zoning has been shown to be less successful when there is no incentive for the developer. A 2024 study from the Terner Center for Housing Innovation at UC Berkeley demonstrated that while 200,000 new housing units were built over a 10-year period in Los Angeles and of those 49,500 were new affordable units, without the requirement nearly 400,000 new housing units would have been built. Given the relationship between supply and demand, the researcher suggests that adding more units would have reduced the cost -burden to others and that some of those units would have been affordable to those at or below 80 percent of that area's median income.5 The need for incentive is the primary reason inclusionary housing policies are tied to requests for funding from a municipality. This may require a change in the City of Arden Hills' approach to subsidies for developers such as using Tax Increment Finance districts, or adopting an Economic Development Authority levy directed at housing production. This approach would be true for sites outside of the Rice Creek Commons area which has defined goals for affordability and mix of housing types. Other tools and policies Many other communities in the Metropolitan area have taken a more incentive -based approach to increasing housing affordability and housing production through PUDs, master plans, and implementing density bonuses associated with a public benefit in order. For example, in Woodbury, recent efforts to address the City of Woodbury's 2040 Comprehensive Plan vision for a community that has managed, sustainable growth while ensuring housing accessibility for all income levels has resulted in the addition of 688 homes, both single-family and multi -family. Woodbury achieved this by using density bonuses. Density bonuses are a land - use tool that incentivizes more units per development. Most of the projects in Woodbury are part of a master plan. A similar approach to master planning can be accomplished with Planned Unit Developments. Woodbury offers three types of public benefit requirements in exchange for the density bonus: affordable housing, park dedication, and sustainable design. In practice, this has resulted in the following projects in Woodbury: 1. Legends of Woodbury is a 216-unit affordable senior housing project. For that project the developer received the ability to add 30 units more than allowed by right in exchange for providing 1.5 units of affordable housing per acre of developed area AND adding more green space than required. 2. Orville Commons is a 211-unit family -oriented affordable apartment building paired with 24 affordable townhomes. Most of these units have at least two bedrooms. Many have more. 3. The Meadows at Prairie Ridge is a 237-unit family affordable apartment complex that added 39 more units by providing affordable units, more green space than required, and using sustainable building practices. This project received no additional subsidy from the city or through the city's channels. Many cities offer down -payment assistance programs for first-time homebuyers, often greater than $10,000 per homebuyer. And many offer low -interest rehabilitation loans in order to help people 5 https://ternercenter.berkeley.edu/wp-content/uploads/2024/04/lnclusionarv-Zoning-Paper-April-2024-Final.pdf. Accessed 10/01/2025 Page 7 of 9