This glossary provides definitions for various terms as used in this website.
Inclusionary housing refers to a broad range of practices and policies directed at securing affordable housing in mixed-income projects through the development regulations and approval process. The most notable and effective examples are inclusionary zoning as practised in the US, and ‘planning gain’ as practised across England. Montreal, Toronto and Vancouver also have adopted inclusionary housing approaches in this country.
Inclusionary zoning refers to the particular set of practices and policies seen in the inclusionary programs in the US. Put another way, it might be described as “American-style” inclusionary housing. Although all of the programs vary somewhat in their detail, they all conform to the same and recognizable overall model. There are no corresponding programs in this country.
Affordability controls refer to the various restrictions used to protect the affordability of the affordable units, including affordable ownership units specifically. In the latter case, these controls deal with the resale price, sales process, occupancy requirements, eligibility criteria of the purchasers, and related matters. The controls are maintained through particular legal instruments registered on the title of the property, such as restrictive covenants, second mortgages, ground leases and rights to purchase.
Affordable housing refers to housing that is provided at a price or rent substantially “below-market” through a subsidy or other intervention, and subject to enduring controls on affordability and occupancy. It encompasses social housing typically provided through government assistance, and also affordable rental and ownership housing that might be provided by regulatory concessions or incentives.
Affordable ownership housing refers to housing built provided by for-profit or non-profit developers, and sold at a price substantially below the market price for the equivalent market units. The reduced price is typically achieved through regulatory concessions or incentives, and is locked in a way that passes on the affordability to succeeding buyers for long or permanent period of time.
Area median income is the yardstick used across the US when determining income eligibility for affordable housing, and also for most social assistance. (For example, eligibility for affordable ownership programs might be set at 100% or 120% of the area median income; the actual threshold will depend upon the relation of household incomes to housing prices that jurisdiction.) Different median income figures are used for different household sizes, so that eligibility can be tied to rents and prices of the appropriate unit sizes.
As-of-right is used in reference to housing or other developments built within the approved planning and zoning regulations, and so needing no additional development approvals. This distinction is important because some inclusionary housing programs only impose an affordable housing obligation on developments needing additional approvals (say, for a change of use or for additional density), while others impose it on all new developments including those proceeding ‘as-of-right’.
Community land trusts are independent community-based organizations established to hold land and protect its affordability in perpetuity. (There are also other trusts dedicated to protecting natural or environmental resources.) These trusts typically use a shared-equity model in which the trust sells the house and other improvements on the land, but continues to own the land, which it leases at a nominal rate to the homebuyer.
Cost off-sets refers to the concessions offered by municipalities to cover some or all of the costs incurred by developers in providing the affordable units through inclusionary programs. These typically include a variety of concessions related to the regulatory process, with density increases being the most common and generally most effective. Notably, they do not typically include financial subsidies or property tax relief.
Fees-in-lieu are used in many inclusionary programs as an alternative to providing the affordable housing. The fees collected are then used to support the provision of affordable housing in other ways. The fees are set in a variety of ways; most are directed at the municipality at least recovering the full value of the affordable units that it is foregoing.
Low-end-of-market housing refers to housing that is made marginally more affordable, but still within capability of the developers without government assistance, through some reduction in the attributed land price and/or the construction of more modestly-sized units with lesser amenities or less costly finishes. This housing is typically not subject to affordability controls that protect its long-term price because of the belief (probably mistaken) that the affordability will be sustained inherently.
Key workers is a term coming out England and that has a specific statutory definition there. It refers to certain designated classes of essential public-sector workers (like teachers and firefighters) that are eligible for special housing assistance because they are unable to afford housing in the high-priced urban markets (like London) in which they work.
Non-market housing refers to housing of any kind not provided by the market. It includes social housing, supportive housing and other government-assisted housing for special needs. It can also include below-market (or affordable) ownership housing as well as market rental housing.
Permanent affordability refers to the principle of controlling the affordability of the affordable units so that the price or rent remains affordable to the targeted households for a long period of time. The term is widely recognized and used in the US with regard specifically to affordable ownership housing, but has gained only limited recognition in this country. In the US inclusionary programs, this period is generally taken to mean at least 30 years, but is increasingly being set for the life of the building or in perpetuity.
Restrictive covenants are the type of legal instrument almost universally across the US to register the enduring affordability and occupancy controls on affordable ownership units. Due to differences in how common law has evolved in the two countries, this instrument is not available for this purpose to local governments in this country in the absence of provincial authority. BC has overcome this hurdle by authorizing the use of ‘housing agreements’ to impose the relevant equivalent controls.
Shared-equity housing is type of affordable ownership housing in which the local government (or other local organization committed to preserving affordable housing) maintains an equity interest in the property. It provides a way of reducing the cost of home purchase because the buyer purchases only a partial interest while enjoying nearly all of the benefits of home ownership. There are various types of shared-equity housing, characterized mainly by how the government (or other) equity interest is protected.
Workforce housing is a term coming of the US that refers to housing – mainly, but not necessarily, ownership – targeting families with relatively good-paying jobs, but left out of the private market by rising house prices. Put another way, it also often seen as serving those households that earn too much to be eligible for social housing, but too little to afford new market housing. Inclusionary programs in many jurisdictions are an important way of providing for workforce housing.
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