This land-use regulation mandates a portion of new residential construction be affordable to individuals and families with low to moderate incomes. For instance, a developer constructing a new apartment complex in a designated area may be required to set aside a certain percentage of units at below-market rates for qualifying households. This mechanism seeks to integrate diverse income levels within a single neighborhood.
The practice addresses socioeconomic segregation and aims to create more equitable access to housing, education, employment opportunities, and other resources often concentrated in higher-income areas. Historically, it emerged as a response to exclusionary zoning practices that effectively limited affordable housing options, contributing to spatial inequality and perpetuating patterns of concentrated poverty. Its implementation can foster more economically integrated communities, mitigate displacement pressures in gentrifying neighborhoods, and expand housing choices for households facing affordability challenges.