The Gainesville City Commission amended and passed the first reading for a new inclusionary zoning policy on Thursday, straying from staff’s recommendation.  

The inclusionary zoning policy will require new multifamily developments with more than 10 units to set aside 10% of their units for affordable housing. The units will need to stay under the affordability guidelines indefinitely.  

The city aims to mix affordable housing within the market rate developments being built. Other cities and counties in Florida have also adopted inclusionary zoning policies, but this avenue for affordable housing remains untested in the courts.  

Sean McDermott, senior assistant city attorney, said inclusionary zoning policy has more legal risks attached than other housing changes the city might pass.  

 “It would not blow my mind if we face challenges in the future regardless of where you land tonight as far as the policy,” he said.   

McDermott said city staff presented its recommendation from a risk management perspective, trying to require as much affordable housing as possible while minimizing the chances of legal challenges from developers.  

Brittany McMullen, city planner, presented the staff recommendation to only apply the inclusionary zoning policy to developments planning to build 50 units or more. The recommendation also limited the mandatory policy to certain zoning sections found in the city’s core— Urban 5, Urban 6, Urban 7, Urban 8, Urban 9 and Downtown transect zones.  

McMullen said most large-scale, multi-family developments submit plans for these zoning categories. The city’s bonus incentives also have more impact in these categories. 

Andrew Persons, the city’s chief operating officer, said the key for Gainesville is balancing the requirements placed on developers with the incentives offered by the city.  

Florida law requires cities and counties with inclusionary zoning policies to fully offset developers for the cost of the affordable housing. Meaning the developers don’t pay for the mandatory affordable housing units.  

Instead of offering cash for the affordable units, cities and counties can provide in-kind services. Gainesville will offer expedited review of plans, lowered fees related to development and flexibility with form and design standards.  

The city will also give up to a 50% density bonus. This will allow developers to build up to 50% more units than the zoning for that land allows under the city’s codes.  

The policy passed on Thursday gives a 30% density bonus automatically for being in the mandatory inclusionary zoning program. Extra density will be given if the affordable housing units are offered at a lower percentage of the area median income. More density is also available for certain tree preservation policies.  

But all density bonuses are capped at 50%.  

Staff’s proposal also allowed new developments outside the mandatory zones to opt into the inclusionary zoning program. The City Commission changed that policy to include all areas of the cities that allow multifamily housing.  

Commissioner Reina Saco made the motion to accept the inclusionary zoning policy with the changes down to 10-unit developments and everywhere in the city.  

She said almost all public discussion on inclusionary zoning has been at the 10-unit development level and noted that both the City Plan Board and Affordable Housing Advisory Committee were not in favor of staff’s increase to 50-unit developments.  

As an attorney, Saco said she understands the attempt to reconcile new housing with Tallahassee’s requirements. However, she said the citizens elected her to make bold choices to expand housing options.  

“I’d rather try and have to try again later than go for something mediocre,” Saco said. “I wasn’t elected to do something mediocre; I was elected to try to do something good.”   

She said the worst that could happen in the courts is for the city to then scale back the program.  

Persons said each development will be unique and require a lot of staff time to ensure the incentives offered match the cost of the mandatory units. He said those price points will fluctuate per development, and each development submitted will need to end with a developer’s agreement.  

If city staff and a developer can’t agree on the incentives and price points, the courts might be asked to weigh in.  

Commissioner Casey Willits said he doesn’t think developers will pursue costly and lengthy litigation over small differences. After all, time is money. He said small delays can upend projects, much less the time required to sue.  

Developers can also pursue a fee in lieu of options where it pays the city to opt out of the inclusionary zoning program.  

The inclusionary zoning guidelines passed 6-1 with Commissioner Ed Book in dissent.  

Book said he wants affordable units but prefers the city staff’s more cautious approach. 

The City Commission will need to finalize the vote at a future meeting.